Only 15% Can Afford a San Diego Home: What This Means for Sellers

What Does "Only 15% Can Afford" Actually Mean for San Diego Homeowners?

The 15% affordability figure comes from analyzing median household income against median home prices using standard lending criteria. With the median single-family home priced at $975,000 as of September 2025, a household would need an annual income of approximately $200,000-$250,000 to qualify for a mortgage under typical debt-to-income ratios.

For context, the median household income in San Diego County is approximately $89,000. This creates an affordability gap of historic proportions. As Lisa Sturtevant, chief economist at Bright MLS, told the San Diego Union-Tribune: "Affordability is the biggest constraint in the market right now."

How the Affordability Crisis Creates a Two-Tier Market

San Diego's housing market has split into two dramatically different realities—what economists call a "K-shaped" recovery. According to November 2025 reporting by the San Diego Union-Tribune, luxury homes priced at $6 million or more are selling three times faster than last year, with time on market dropping from 750 days to just 223 days. Meanwhile, the traditional middle market has collapsed to 40-year lows.

For middle-market homeowners—those with properties between $800,000 and $2 million—this creates a squeeze. Affluent buyers focus on premium properties, while first-time buyers and middle-class families are priced out. Your target buyer pool has shrunk dramatically, explaining why cash buyers have become increasingly attractive as an alternative to waiting months for a qualified buyer.

Why San Diego Home Prices Are Still Falling (4 Months Straight)

Despite years of price appreciation, San Diego's market has now experienced four consecutive months of price declines. According to the S&P Case-Shiller Home Price Indices, the San Diego metro area saw home prices decrease 0.85% annually in September 2025. Redfin data shows the median sale price at $930,000 in October 2025, down 2.1% year-over-year.

For sellers, this creates a strategic question: Is it better to sell now with certainty, or wait for a recovery that may take years? Consider that carrying costs (mortgage, insurance, taxes, maintenance) on a $975,000 home can exceed $6,000-$8,000 monthly. Waiting 12 months costs $72,000-$96,000 in carrying costs alone—will prices appreciate enough to offset this?

Cash Buyers vs Traditional Buyers: Your Best Option in This Market?

In a market where only 15% can afford to buy and traditional sales take 41+ days with uncertain outcomes, cash buyers offer distinct advantages:

When Selling Fast Makes Financial Sense in an Affordability Crisis

Several life situations make a fast cash sale the optimal choice:

Citation Magnet: San Diego Affordability Crisis by the Numbers

Frequently Asked Questions

Conclusion

San Diego's affordability crisis—where only 15% of households can afford a median-priced home—has fundamentally restructured the real estate market. Four consecutive months of price declines, surging inventory, reduced buyer competition, and a two-tier market split between luxury boom and traditional bust create uncertainty for homeowners.

If you're facing financial pressure, dealing with an inherited property, relocating for work, or simply want certainty in an uncertain market, a cash offer provides a practical solution. While traditional sales have their place, the reality of today's market—41 days on market, 3 competing offers, declining prices, and an 85% reduction in qualified buyers—means many homeowners benefit from the speed, certainty, and simplicity of a cash transaction.

The decision to sell is personal and depends on your unique circumstances. But in a market where the American Dream has become month-to-month for most San Diegans, having options matters.