U.S. Market Insights | Why Move to San Diego?
The pandemic has systematically prompted people to move and live their best life which often means moving from the city to more areas immersed in nature. For those who love California but need a change of scenery, San Diego is a great option. One of my favorite agents at Douglas Elliman is an expert in San Diego., Her name is Jenna Yost and here’s what she has to say about the area.
JH: How has the pandemic changed the market in San Diego?
JY: The pandemic made San Diego a destination for remote workers from Los Angeles, San Fransisco, and Arizona. It also became a great spot for second homes for Arizona residents who could drive out on the weekend. People moved out of downtown San Diego, and into rural areas with more indoor and outdoor space.
JH: Why are people moving to San Diego?
JY: People are moving to San Diego for a variety of reasons! The Los Angeles and San Fransisco buyers are moving down because San Diego is more “affordable” and they can be competitive. The weather always plays a part in people moving to San Diego, as we get sunny and 75-degree temperatures for most of the year. San Diego provides a more laid-back lifestyle and there is honestly something for everyone. From the higher-end communities like La Jolla and Coronado to the North Park hipster communities, and rural areas of east county. We also always have the military relocating here all year round!
JH: Where are people moving from?
JY: The majority of out-of-area buyers I have worked with within the last 18 months are from Los Angeles, San Fransisco, and Arizona, however, we always have a rotating military community of buyers coming in year-round from all over the world.
JH: What are the benefits of living in San Diego?
JY: There are too many to list! There is so much to offer in San Diego from the world-famous beaches, hiking trails, wide variety of communities, to world-class restaurants, rich history, and amazing real estate opportunities. There is a neighborhood for everyone in San Diego depending on what you are looking for!
JH: What’s the average price of a home in San Diego?
JY: Right now the average home price in San Diego is $749,000!
JH: What’s the average age of the people living in San Diego? What’s the community and culture there like?
JY: San Diego is such a melting pot of different age groups! For example, in some of the newer downtown high rises in Little Italy and East village, some retirees have sold their single-family homes to live in the high rise walkable condo life! Each community in San Diego warrants a different variety of ages. Some of the beach communities are known to attract a younger demographic but it’s always a mix!
JH: What kind of investment opportunities are there in San Diego?
JY: So many! Second beach homes, multi-family, and condos/homes in attractive areas that can be rented to military or college students.
JH: Can you tell me about the up-and-coming areas and why people are moving there?
JY: In the last 5 years, people have been attracted to the North Park/South Park areas surrounding Balboa Park. This area holds the charm of 1900’s Spanish-style homes and adorable craftsman homes. Walkability to the breweries, museums, and world-famous San Diego zoo. Also, Imperial Beach is a big factor. The Navy moved a base to the end of the silver strand and there are new restaurants, coffee shops, and stores popping up all over Imperial Beach.
JH: Are people buying investment properties in San Diego? When do people rent down there and what kind of returns are they getting?
JY: YES! I am seeing listings sell quickly and then pop up as rentals! The San Diego rental market is almost as competitive as the resale market right now. During the pandemic, a lot of San Diegan’s bought bigger homes and rented out their smaller townhomes/condos and got great returns! Buyers are purchasing investment properties ranging from 1.5 Million new construction 3 bedroom ocean view condo (a second home that can be rented) all the way down to $400,000 condos in North Park. For single-family homes, it’s usually between $650,000-$800,000 where you can have short-term rentals. Most condo complexes have restrictions on 30 days or less.