We started The San Diego Dirt because we know that understanding real estate can be tricky if you are not actively involved in the profession. However, real estate markets play a big part in each and every one of ours lives, whether we pay attention or not. This newsletter will serve as a resource to help with that problem.

Every issue, we’ll break down what’s actually happening in the San Diego market - what homes are selling for, which neighborhoods are moving, what rates are doing and most importantly what that means for you. Whether you are buying, selling, investing or just keeping an eye on your biggest asset, we’ve got the intel.

No jargon. No fluff. Just the dirt.

Take a look at this chart.

Back in early 2023, the median sales price in San Diego County sat around $750K. From there we’ve climbed over $900k as of May 2026. That’s over a 20% increase in just 3.5 years. If you are a homeowner, you’ve added around $155k to your homes value just by owning it. If you’re like me, a renter, this seems daunting. As the barrier to enter for homebuyers in San Diego is paramount, we need to understand why such an increase.

The biggest driving factor of San Diego’s rising home value’s is simple: there’s not enough supply. As we know, San Diego is geographically boxed in. Ocean, mountains, military bases and the border. You cannot build outward, developers must build up.

Another key factor falls to mortgage rates easing earlier this year. When mortgage rates dipped closer to 6% in 2026, buyers who had been sidelined by higher monthly payments were able to jump back in. More buyers chasing the same limited homes = higher prices.

Rates hit a scary 7.79% in late 2023 and a lot of buyers simply sat on the sidelines. Today we're sitting around 6.36% and trending down. Not the sub-3% days of 2021, but meaningfully better. For a $750K loan, that difference is roughly $500/month.

With the median home price of $905K and a 20% down payment ($181K), your monthly payment at this rate would come out to $4,516. This is not even factoring in the other expenses that come with owning real estate. Property tax, home owner’s insurance, maintenance and potential HOA.

With that daunting information out of the way, we need to get a pulse on how the rental market reacts to this. With a lot of the population being barred out of the buying game, it is important to know where rentals are.

It obviously depends who you ask, Boomers will tell you renting is throwing away potential equity building activity in a home. The numbers tell an interesting story. Boomers will tell you renting is throwing away potential equity building activity in a home.

The San Diego rental market is softening in 2026. Vacancy has climbed to 5.4%, up from historic lows near 2.6% in 2021, and the main driver is a massive wave of new supply. Over 6,200 units were delivered in 2025, with another 4,000 projected for 2026. That's more than 10,000 new rental units in two years flooding a market that historically absorbs around 3,000 per year. For renters, that's actually great news.

Rent declines of 1%-7.5% percent have appeared across most unit types, and many landlords are now offering move-in specials and more flexible terms. As of May 2026, the median rent across all bedroom types in San Diego sits around $2,751, down about 2% from a year ago.

Compare that to buying: as we showed above, a mortgage on a median-priced San Diego home runs around $4,516/month. Roughly $1,500 more per month than a typical two-bedroom rental. That gap is real, and for a lot of people it's the difference between financial breathing room and being house-poor.

The bottom line: renting is genuinely favorable right now on a monthly cash basis. But if you're planning to stay in San Diego for 5+ years and can manage the down payment, buying still builds long-term wealth that renting simply can't match.

If you’ve spent any time in San Diego, you know that North Park has a certain energy. Walkable streets, independent coffee shops, some of the best restaurants in the city and now, a lot of cranes scraping the skyline.

The neighborhood is in the middle of a quiet but significant push, and two projects in particular tell the story well.

Currently underway, A new 78-unit affordable housing development is coming to the corner of 30th and Gunn Street, the former site of a community garden owned by St. Luke's Episcopal Church. The eight-story building will have income-restricted units for residents earning between 30-70% of the San Diego County Area Median Income, with a mix of studios, one-bedrooms, and two-bedrooms. The project broke ground in 2025 and represents a broader trend of faith-owned land being put to use for housing in supply-constrained neighborhoods.

Further more, on March 19, 2026, the San Diego Planning Commission unanimously approved a seven-story, 92-unit apartment tower at 2906 University Avenue - right in the heart of North Park. The developer, Purpose Real Estate, will rehabilitate a nearly 100 year old Spanish Colonial Revival building, that dates back to 1929, while adding 76 market-rate units and 16 deed-restricted affordable units above it. The 6-0 vote sailed through the commission with almost no public push back. Construction is expected to begin sometime in 2027-2028.

Zooming out, the city's long-term vision for North Park is a more walkable, densely populated community that blends retail, residences, and business — replacing aging mini-complexes from the 1960s and 70s with new mixed-use developments that put ground-floor shops beneath modern apartments.

Starting this newsletter has been something I’ve wanted to do for a while and I am really glad you’re here for Issue #1.

If you found this useful, forward it to someone who's thinking about buying, selling, or renting in San Diego. It's the best way to help this newsletter grow.