San Diego Real Estate Market Outlook: Insights and Predictions for 2025-2026
The San Diego housing market is expected to experience a gentle correction rather than a crash in 2026, according to recent forecasts. This shift comes after a period of transition from the frenzy of the past few years, settling into something more normal.
For the most up-to-date and specific information regarding the current state of the San Diego property rental market, it's recommended to refer to the latest reports and data from sources like local real estate associations, government housing agencies, and real estate websites.
As of July 2025, the median rent for all bedroom counts and property types in San Diego, CA is $2,800. Rent prices for all bedroom counts and property types in San Diego have remained the same in the last month and have decreased by 5% in the last year. The monthly rent for an apartment in San Diego, CA is $2,499. A 1-bedroom apartment in San Diego, CA costs about $2,295 on average, while a 2-bedroom apartment is $2,928. Renter-occupied households make up 53% of the housing units in San Diego, indicating a significant presence of renters in the city.
The median time on market in San Diego has increased to 21 days in June 2025, up from 14 days in June 2024. This increase in inventory is good news for buyers, and the slight dip in prices could create opportunities.
Houses for rent in San Diego, CA are more expensive, with an average monthly cost of $4,150. The median home price in California was $899,560 in June 2025, while the median sold price of an existing single-family home in San Diego County was $1,025,000.
Experts predict a slight dip in home values in the coming months, but a "crash" is unlikely. Mortgage rates may come down in the future, which historically has pushed home prices up and made it easier for people to buy houses. For sellers, it means being realistic about pricing and being prepared to negotiate.
The current forecast for the San Diego housing market in 2026 predicts either moderate growth or stagnation in home prices, with increased home sales expected. Existing home sales are projected to increase by 11% in 2026, and new home sales by about 5%, while home prices may slightly rebound or flatten out rather than decline significantly.
The area remains attractive due to its strong job market and desirable living conditions, helping to sustain housing values. California Association of Realtors (C.A.R.) reports a rebound in home sales across California in June 2025, with a slight decrease in San Diego home sales compared to May.
On a broader scale, Zillow’s latest forecast for the U.S. housing market anticipates a roughly 1-2% decline in home prices by mid-2026, especially in higher-priced markets like San Diego. However, local expert analysis suggests San Diego's limited housing supply and high demand will temper any sharp price drops, making significant declines less likely.
In summary, most indicators suggest a stable to moderately growing San Diego housing market in 2026, marked by a possible slight price rebound or stabilization rather than a downturn.
- The latest reports and data from sources like local real estate associations, government housing agencies, and real estate websites can provide the most current information about the San Diego property rental market.
- As of July 2025, the median rent for all bedroom counts and property types in San Diego, CA is $2,800, with rent prices remaining the same in the last month and decreasing by 5% in the last year.
- Renter-occupied households make up 53% of the housing units in San Diego, indicating a significant presence of renters in the city.
- The median time on market in San Diego has increased to 21 days in June 2025, providing opportunities for buyers in the market.
- Experts predict a slight dip in home values in the coming months, but a "crash" is unlikely, and there may be a rebound or stabilization rather than a significant decline.
- The San Diego housing market is expected to experience moderate growth or stagnation in home prices in 2026, with increased home sales expected, making it an attractive market for both investors and homebuyers.
