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San Diego County: at 7.40%, buying the median-priced home costs about 2.2 times the typical rent

By Dr. Hamid Rowshan, Choice of America

In San Diego County, asking prices are lower than a year ago, but the monthly payment on a median-priced home now runs well above the typical rent.

San Diego County asking prices are lower than a year ago, but mortgage rates have widened the gap between renting and owning. Realtor.com's September 2026 data put the county's median listing price at $888,450 (FRED MEDLISPRI6073), down about $59,525, or 6.3%, from $947,975 in September 2025, and down from this year's high of $939,000 in May. Over the same year, Freddie Mac's average 30-year fixed mortgage rate rose from 6.30% in the week of October 9, 2025, to 7.40% in the week of October 8, 2026 (FRED MORTGAGE30US), the highest weekly average since November 2023. It was 6.71% at the start of September and as low as 5.98% in late February. The next weekly reading is due October 15.

Here is what that does to a payment. As an illustration, a buyer putting 20% down on today's median, or about $177,690, would borrow about $710,760. At 7.40%, principal and interest on a 30-year fixed loan comes to about $4,921 a month. A year ago, 20% down on the $947,975 median at 6.30% would have meant a loan of about $758,380 and a payment of about $4,694. So the median asking price is about $59,525 lower, but principal and interest is about $227 a month higher. At February's 5.98%, today's median would have cost about $4,252 a month, roughly $670 less than now. All of these figures leave out property taxes, homeowners insurance, HOA dues, and any Mello-Roos assessments that are common in newer communities.

Set that against what San Diego County households earn and pay to rent. The U.S. Census Bureau's QuickFacts puts the county's median household income at $106,268 (2020-2024 American Community Survey, in 2024 dollars), or about $8,856 a month before taxes. Principal and interest alone on the example loan would take about 56% of that. To keep principal and interest at 30% of gross income, a common affordability benchmark, a household would need about $197,000 a year, roughly 1.9 times the county median, and that is before taxes and insurance are added. QuickFacts puts median gross rent, which includes utilities, at $2,246 a month. The example payment of $4,921 is about 2.2 times that rent, a gap of about $2,675 a month. Existing owners are in a different position: the median homeowner with a mortgage pays $3,184 a month in total owner costs, which include the mortgage, taxes, insurance, and utilities, and 54.6% of the county's homes are owner-occupied.

The market itself still moves faster than the rest of Southern California, but sellers are adjusting. There were 5,749 active listings in September (FRED ACTLISCOU6073), down about 1.5% from a year earlier, and 2,326 new listings came on (FRED NEWLISCOU6073), essentially unchanged from September 2025. Pending listings, homes with an accepted offer that had not yet closed, fell to 2,137 (FRED PENLISCOU6073) from 2,365 a year earlier, or about 37 homes in escrow for every 100 for sale, still the highest pending ratio of the five Southern California counties Choice of America serves. The median listing spent 46 days on the market (FRED MEDDAYONMAR6073), quicker than Orange (53), Los Angeles (56), Riverside (62), and San Bernardino (65), and quicker than the 49 days of September 2025. Realtor.com reports that 20.4% of San Diego County listings had a price reduction in September, up from 20.0% in August and 19.8% a year ago, while 1.0% had a price increase. Only Orange County, at 21.1%, had a higher price-cut share among the five. The median listing had 1,507 square feet, and the median asking price was $587 per square foot (FRED MEDLISPRIPERSQUFEE6073), down from $608 a year earlier.

What this means day to day: from Oceanside, Carlsbad, Vista, San Marcos, and Encinitas to Del Mar, Poway, Ramona, and Rancho Bernardo, and from Clairemont, North Park, Point Loma, and Mission Valley to La Mesa, El Cajon, Santee, Chula Vista, National City, and Imperial Beach, a lower sticker price can still hide a higher monthly cost. Axios San Diego reported on October 13 that First American's Home Price Index shows prices for San Diego "starter" homes under $1 million down 1.1% since last August, while higher-priced tiers rose, with San Diego Association of Realtors president Karen Van Ness pointing to rates near 7.3% as the reason lower-budget buyers are pausing even when prices ease (https://www.axios.com/local/san-diego/2026/10/13/san-diego-housing-market-homes-under-1-million). Buyers should get a fresh pre-approval at today's rate rather than relying on one from the summer, and compare the full monthly cost of owning with their rent, including property taxes, insurance, HOA dues, and Mello-Roos. With about one listing in five showing a price cut and homes taking about six and a half weeks to sell, buyers can ask for seller credits toward closing costs or a rate buydown, which can lower the monthly payment more than a small price cut. The county's mean travel time to work is 25.5 minutes, so test the drive at rush hour on the 5, the 15, the 805, or the 8 before you commit. Sellers should price close to recent comparable sales from the first day and have recent insurance and disclosure information ready, because buyers are measuring every listing against their rent and their full monthly budget.

At Choice of America, we help buyers, sellers, and renters across San Diego County compare payments, neighborhoods, and trade-offs city by city. Visit our San Diego County page for local guidance, or call or text us to talk through your plans.

Choice of America · San Diego County real estate

Dr. Hamid Rowshan, DRE #02004794, company DRE #02240008. Choice of America, serving Orange, Los Angeles, Riverside, San Bernardino, and San Diego counties. Call or text 833-THIS-BROKER, (833) 842-7465.

Payment figures are an illustration based on the median asking price, a 20% down payment, and Freddie Mac's average rates, principal and interest only; they are not a loan quote. Census income, owner-cost, and rent figures are 2020-2024 five-year averages and are not directly comparable to current listing data; the comparison is for context only.

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Dr. Hamid Rowshan · DRE #02004794 · Company DRE #02240008 · Orange, LA, Riverside, San Bernardino & San Diego counties.

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