San Diego is one of the most attractive places to live in America. It is difficult to beat the beach, weather and lifestyle here. But living in paradise comes with a big price tag. Buying a house here is not easy, and most people want to know:
- How much salary do you need to buy a house in San Diego?
- What is a good time to buy 2025 real estate?
- What is the average price of a house?
- Are house prices going down?
Let’s look at what the numbers say and what it really means for buyers today.
What Salary Do You Need to Buy a House in San Diego?
The biggest challenge for those who buy homes in San Diego is the power of the house. Experts follow a simple rule: your home monthly expenses (hostage, tax, insurance) should not exceed 30% of your income.
Salary Needed in 2025:
- Redfin reports say you’ll need around $241,000 – $243,000 a year to buy an average home here.
- Investopedia data shows you’d need about $234,000 yearly income for a median-priced house near $987,000.
- Consumer Affairs puts the number even higher—over $310,000 a year.
- For context, Smart Asset says a single adult needs $127,000 just to live comfortably in San Diego, without even buying a house.
👉 That means the average worker or renter is far from being able to afford a home. The gap between income and housing costs is the biggest reason ownership feels out of reach for many families.
How Much Does a House Cost in San Diego?
Here’s where prices stand today:
- The median listing price in early 2025 is about $950,000.
- The median sale price in March was $1.04 million, just 2% higher than last year.
- By June, the median sale price dropped to $917,500, about 3% lower than 2024.
- Examples of the neighborhood:
- The average price of Chula Vista's houses is around $760,000.
- Poway is much higher, around $1.79 million (up 32% in one year).
More than 60% of homes in San Diego are now listed above $1 million, making it one of the top four most expensive cities in the U.S. according to Wikipedia.
Is It a Good Time to Buy Real Estate in San Diego?
This is the big question for 2025. Let’s look at what’s happening.
Signs the Market Is Cooling:
- In May 2025, about 15 out of every 100 homes listed were pulled off the market, one of the highest rates in the country (Axios report). That shows sellers are struggling to get their asking prices.
- Median sale prices dipped 3% year-over-year in June (NBC San Diego).
- Listings are up almost 44% compared to last year (NY Post), which means buyers have more choices.
But There’s Another Side:
- Mortgage rates are still high, so monthly payments remain heavy.
- Many homeowners are locked into old, low mortgage rates. They don’t want to sell unless they get a strong price.
- In popular neighborhoods near the coast or with top schools, demand is still strong.
👉 Bottom line: It’s becoming a better time to buy than in the last two years. If you have a solid income, good credit, and a decent down payment, you may be able to negotiate more now than before.
Are House Prices Dropping in San Diego?
There are signs of softening in the market, but not of decline.
- June 2025: Average selling price $917,500 which is 3.3% less than the previous year.
- March 2025: The mean was still $1.04M, which was slightly above 2024.
- Some regions (e.g. Power) are still growing, while others are stable or falling.
👉 Experts agree that San Diego is entering the phase of stabilization. Prices may dip slightly, but a large crash is unlikely. Inventory is increasing, but the city's lifestyle demand is preventing prices from falling too much.
San Diego Real Estate Market Approach for 2025
- Short term: Expect a slight fall in prices or stable prices when buyers' power increases.
- Medium term: The prices of homes depending on the region will possibly be around $ 900k-$ 1M.
- Long term: San Diego season, employment market and lifestyle are such that people would always like to live here. This stable demand keeps the market strong with time.
Final Thoughts
It is difficult to buy a house in San Diego in 2025, but not impossible.
- To make a comfortable purchase you will probably need a salary between $240k - $300K.
- The median home price is near $950K–$1M.
- The market is cooling, with more inventory and small price drops.
- Do not expect a fall in prices - they are more likely to remain stable.
If you are financially prepared, it can be a good time to shop before the competition grows. If you are not ready, focus on saving, improving your credit score and being ready for the right opportunity.
✅ Tip for buyers: Work with a local real estate specialist who knows San Diego's market. The right guidance can help you find a neighborhood friendly to your budget and lifestyle.
And if you are thinking of selling your house fast in California, take a look at the XLNC Exotic. We help home owners from all over California to sell homes quickly and easily - this process easy, stressful and on your terms.
