San Diego Housing Market 2026: What Investors and Owners Need to Know

The San Diego housing market has split into two tracks in 2026. Detached homes are holding their value, while older condos slip under HOA pressure. Here is what that means for owners and investors.

June 15, 2026

For 13 years, Good Life Property Management has helped people own and rent property across San Diego. In that time, we have managed more than 1,400 properties across Southern California, and we also run our in house rental property sales team. That means we watch the San Diego housing market from two sides at once, as the people who lease your property and the people who sell it. Because of that, we see trends early, often before they show up in the headlines. So if you are thinking about buying, selling, or holding, here is a clear and honest look at where the market stands today and where it may be heading.

Key Takeaways

The San Diego housing market in 2026 is steady but split by property type. Here are the key takeaways:
Detached single-family homes have held near their 2022 peak, while older condos and townhomes are down about 10 to 15 percent.
Rising HOA dues, SB 326 inspection costs, and higher insurance are the main drag on condo values.
Buyers are more cautious, with concessions of 1 to 3 percent and longer market times now common.
The rental market has cooled, with vacancy up and rent growth flat to slightly down.
Mortgage rates near 6.5 percent are the big wildcard for the rest of the year.

San Diego Housing Market Snapshot
A Tale of Two San Diego Housing Markets
San Diego Single-Family Homes Are Holding Their Value
Why San Diego Condo and Townhome Prices Are Under Pressure
San Diego Housing Market Trends: How Buyers Are Acting in 2026
The San Diego Rental Market in 2026
San Diego Housing Market Forecast 2026 and Beyond
What This Means for Investors and Owners
Frequently Asked Questions
How San Diego Property Management Helps in a Split Market

San Diego Housing Market Snapshot

First, here is where things stand today. The San Diego housing market is no longer the fast, simple seller’s market we saw during the 2020 to 2022 run-up. However, it is not a crash either. Instead, it is more balanced, more selective, and more split by property type.

Over the three months ending May 2026, Redfin shows the median sale price in the City of San Diego at about $954,000, down 3.0% from a year earlier, with homes selling in a median of about 23 days. At the same time, the latest California Association of Realtors data, for April 2026, puts the countywide single-family median much higher at $1,074,000, up 5.8% year over year. That gap is not an error. Rather, it reflects our two-track market, since softer condo prices pull the all-home median down while houses hold their value. The table below breaks down the key numbers and what they mean.

Market Factor	Current Signal	What It Means
City of San Diego median sale price (Redfin)	About $954,000, down 3.0% year over year	Some city prices, led by condos, are softening.
County single-family median (C.A.R., April 2026)	$1,074,000, up 5.8% year over year	Houses are holding their value, while condos lag.
Median days on market	About 23 days	Good homes still sell, but buyers take more time than in 2021.
Sale-to-list price	Near 99% (per Redfin)	Many sellers still get close to asking when priced right.
Median rent	Low-to-mid $2,000s, flat to slightly down (per Apartment List)	Rents are still high, but rent growth has cooled.
30-year mortgage rate	Around 6.5% (per Freddie Mac)	Higher borrowing costs keep limiting buyer budgets.

In short, the San Diego real estate market is steady, but not easy. Buyers have more room to negotiate. Sellers need better pricing and presentation. Investors need to focus on cash flow, insurance, HOA costs, and long-term resale risk. Next, here is what is driving these numbers.

A Tale of Two San Diego Housing Markets

The biggest thing to understand about the San Diego real estate market in 2026 is that we have seen it split into two tracks. On one side, detached single-family homes have stayed strong and held most of their value. On the other side, older attached condos and townhomes in HOA communities have come under real pressure. Because we both manage and sell across the county, we have watched this divide grow firsthand. As a result, one number for “the market” can be misleading. What happens to your property depends heavily on which type you own. Ryan Prazen, our Director of Real Estate Sales, sums it up simply. Single-family homes are holding, while many older condos are slipping. Below is a quick side-by-side look at how the two tracks compare right now.

Feature	Single-Family Homes	Condos and Townhomes
Price vs. 2022 peak	Near peak levels	Down about 10% to 15% in many older buildings
Recent price direction	Up about 1% to 5% in strong neighborhoods	Soft and under pressure
Typical time on market	A few weeks when priced well	Often 30 to 90 days
Main pressure	Tight supply and higher mortgage rates	Rising HOA dues, SB 326 repairs, insurance hikes
Buyer demand	Steady in desirable pockets	Cautious and focused on discounts

San Diego Single-Family Homes Are Holding Their Value

Detached single-family homes remain the strongest part of the San Diego housing market. In fact, countywide prices have stayed near their 2022 peak, and the latest county data shows single-family prices up year over year. In higher-demand, low-inventory neighborhoods, everyday home values are still posting steady gains of about 1% to 5%. The countywide median looks even higher, partly because more luxury homes have sold lately.

The main reason is simple. San Diego does not have enough homes. The coast, the canyons, and limited land mean builders cannot add supply quickly. Meanwhile, demand stays strong because of the weather, the jobs, and the lifestyle. As a result, well-priced homes in good pockets still sell fast, sometimes within a few weeks. If you want to see where buyers are putting their money, our guide to the best San Diego neighborhoods to invest in is a helpful place to start.

Why San Diego Condo and Townhome Prices Are Under Pressure

The other track tells a different story. Older attached condos and townhomes, especially those in HOA communities, have been hit the hardest. In some of these buildings, we have seen resale values drop about 10% to 15% or more from their 2022 highs. That is a meaningful gap, and it is not because the units are worse than before. Instead, buyers are simply discounting for higher monthly costs and added risk.

Here is what we mean. When an HOA raises dues or hands owners a large special assessment, the true monthly cost of owning that condo goes up. Buyers notice. Therefore, they offer less to make up for it. On top of that, many buyers worry about future assessments they cannot predict. That uncertainty pushes prices down even further.

SB 326 and the Rising Cost of Owning a Condo

One major driver behind these higher costs is a state law called SB 326. In short, SB 326 requires condo associations with three or more units to inspect their wood-supported balconies, walkways, and stairs, then re-inspect them every nine years. The first inspections were due by January 1, 2025. You can read more in our overview of California’s balcony inspection law.

The catch is the cost. For a mid-size association, inspections plus the repairs they uncover can run into the tens of thousands of dollars. As a result, many boards have raised dues or charged special assessments to cover the work. Then layer on two more costs. First, rising landlord insurance costs have pushed some community premiums up 15% to 30% in a single year. Second, repair and construction costs in general have climbed. Put it all together, and the monthly cost of owning an older condo has jumped. That is the main reason condo prices have slipped while houses have held. For owners of larger buildings, our multifamily insurance guide breaks down what to expect.

San Diego Housing Market Trends: How Buyers Are Acting in 2026

Buyer behavior has changed too, and this shapes the wider San Diego housing market trends we are watching. During the 2020 to 2022 run-up, buyers moved fast and competed hard. Today, things look calmer. Confidence is lower, so buyers are more careful with their money. Deals are still getting done, but the pace is slower.

On the deals our sales team is closing, we are seeing a clear pattern, and it lines up with what the broader market is reporting. Buyers take longer to write offers. They compare more homes before they commit. They also negotiate harder on both price and terms. In addition, it is now common to see requests for credits, such as money toward repairs, closing costs, or a lower interest rate. In many negotiated deals, these concessions add up to about 1% to 3% of the purchase price.

This shift shows up in how long homes sit, as well. Well-presented, well-priced homes in desirable pockets can still sell within a few weeks. However, challenged or aggressively priced listings often stay on the market 30 to 90 days before they find a buyer. In other words, pricing and presentation matter more now than they did two years ago.

The San Diego Rental Market in 2026

The San Diego rental market is also worth a close look, especially if you own property or plan to. After years of fast rent growth, the rental side has softened. A wave of new apartment construction has added supply, so renters now have more choices. As a result, vacancy has risen to about 5.4%, and average rents have gone flat to slightly down over the past year.

For owners, the lesson is to price to today’s market, not to the rents of 2021. A small, smart price can fill a unit fast, while an overpriced one can sit empty for weeks. Empty weeks cost far more than a modest rent cut. If you want a clear starting point, you can check what your property rents for with our free estimate tool. And if selling into a soft condo market does not appeal to you, renting instead of selling may be the better move for now.

San Diego Housing Market Forecast 2026 and Beyond

So where is the San Diego housing market headed? While no one can predict the future with certainty, a few trends point the way. Our current San Diego housing market prediction is that the two-track pattern will continue for now. Detached homes should stay firm because supply is still tight. Older condos, on the other hand, may stay under pressure until HOA costs settle and buyers feel more sure about future assessments.

Mortgage rates are the big wildcard in any San Diego housing market forecast for 2026. Rates have stayed in the mid-6% range, around 6.5%, which has slowed some buyers. If rates ease later in the year, demand could pick up, and more deals would likely follow. You can track current rates through Freddie Mac’s weekly mortgage survey. On the rental side, more new apartments are still on the way, so renters should keep some leverage for a while.

What This Means for Investors and Owners

Because the market is split, the right move depends on what you own and what you want. To make it practical, here is how we would frame it.

If you own a detached home, your value is likely steady. Still, if you rent it out, price it to the softer rental market and plan to protect against vacancy. If you own an older condo or townhome, get to know your HOA’s reserve health and its SB 326 status. Those costs affect both your monthly cash flow and your resale value, so there should be no surprises. If you are thinking about buying, a slower market can work in your favor, since buyers now have more room to negotiate. And if you are buying a home to live in, the calmer pace gives you more time to compare options and negotiate, instead of rushing a major decision. Finally, if you plan to sell, smart pricing and strong presentation are doing the heavy lifting in 2026.

No matter which path you choose, the local rules matter. Make sure you understand the San Diego rent control rules before you set a price or plan a rent increase. A small mistake here can be costly.

Frequently Asked Questions

Is the San Diego housing market going up or down in 2026?

It depends on the property type. Detached single-family home prices have held near their 2022 peak, with small gains in strong neighborhoods. Older condos and townhomes, however, have softened, with some down about 10% to 15% from their highs.

Will San Diego home prices go down in 2026?

A broad, sharp drop is unlikely. Most forecasts expect detached home prices to stay firm, mainly because supply is still tight. Older condos and townhomes, on the other hand, may keep slipping until HOA costs settle and buyers feel more confident. So the answer again depends on the property type and on where mortgage rates go next.

Is it a buyer's or seller's market in San Diego right now?

It is a mix, and it depends on what you are buying. For well-priced single-family homes in desirable areas, sellers still hold the edge, since supply is tight and good homes sell within weeks. For older condos with high HOA costs, however, buyers have more power and often win credits or price cuts. Overall, the market is more balanced than it was in 2021.

Why are San Diego condo prices dropping?

Mainly because the cost of owning them has gone up. Higher HOA dues, special assessments tied to SB 326 inspections and repairs, and rising insurance premiums have all increased monthly carrying costs. As a result, buyers offer less to make up for those expenses.

What is SB 326 and how does it affect my HOA?

SB 326 is a California law that requires condo associations with three or more units to inspect wood-supported balconies, walkways, and stairs, and then re-inspect every nine years. The first deadline was January 1, 2025. The inspections and any needed repairs can be costly, which often leads to higher dues or special assessments for owners.

Is rent going down in San Diego?

Rents have gone flat to slightly down over the past year. New apartment construction has added supply, so vacancy has risen and renters have more choices. Pricing your rental to current conditions is the best way to avoid long vacancies.

How long are homes taking to sell in San Diego right now?

It varies by price and condition. Well-priced homes in desirable areas can still sell within a few weeks. Meanwhile, dated or aggressively priced listings often take 30 to 90 days to find a buyer.

Is now a good time to buy an investment property in San Diego?

A slower market gives buyers more room to negotiate, including credits worth about 1% to 3% of the purchase price. Just be sure to study a property’s full monthly costs, especially HOA dues and possible assessments on attached homes, before you buy.

How San Diego Property Management Helps in a Split Market

Whether you want to buy, sell, rent, or simply make a smart plan, the right guidance makes a difference in a split market. Good San Diego property management does more than collect rent. It helps you price correctly, control costs, stay compliant, and protect your long-term value. Through our in house sales team, we list and sell single-family homes, condos, and investment properties across San Diego County, and we manage rentals every day. So if you have questions about your property or the market, Good Life Property Management is here to help.

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Steve Welty

Steve Welty is the founder and CEO of Good Life Property Management. Since its establishment in 2013, Steve and his team have made owning rental property easy for over 1,000 San Diego homeowners.Their purpose is Life Improved–creating opportunity, enjoyment, and impact for their community is what matters most. DRE #01744610

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