With so many hidden gems in San Diego, it can be hard to know where to shop. I’ve rounded up the top 10 most affordable places to buy in San Diego, along with pictures of each.
What are the most affordable places to buy in San Diego? This is a question many buyers may have, particularly because the conversation surrounding housing affordability in the United States and in particular California, is so pervasive. On a recent list of the least affordable places in America to buy a home, San Diego came in at number 21.
While it’s hard to find a cheap house in Southern California, there are plenty of communities where you can find better deals. Even with higher prices than what’s seen nationally, buyers do still want to find homes within their budget in San Diego and surrounding suburbs.
San Diego comes with a high cost of living but a lot of benefits as well. For example, San Diego County employment is up from 2018. If you’re looking for a deal on affordable housing, the following are some of the top 10 most affordable places to buy in San Diego. Be ready, because affordable for-sale homes move quickly on the market!
For more cheap places to purchase real estate in Southern California, check out our other lists of top affordable places to buy in Los Angeles, Orange County, and the Inland Empire.
Lemon Grove
Lemon Grove is a suburb of San Diego, located in San Diego County. Named one of the most affordable San Diego neighborhoods of 2022, Lemon Grove has a population of around 27,000, and the public schools are above average in terms of the quality of education. There is a lot of diversity and also active nightlife in Lemon Grove. This suburb is only 12 miles from San Diego’s downtown and the airport.
Located in southwest San Diego County, this residential community offers events like the Community Bonfire each year at the Civic Center Park at Olive and Church Street.
According to data from the San Diego MLS, the median home value in Lemon Grove is $650,000, trending upward 16.2% year-over-year, with an average rent of $1,561 – only slightly higher than the national average of $949. The vast majority of homes in Lemon Grove are single-family, but there are also apartments and a few townhomes. Most of the single-family homes are two- and three-bedrooms.
Otay Mesa West
Otay Mesa West is a neighborhood in Southern San Diego with Ocean View Hills to the east and Palm City to the West. Chula Vista is to the north. As one of the top 10 most affordable places to buy in San Diego, Otay Mesa West has a lot to offer if you’re looking for a deal.
There are single-family homes, and the community is 10 miles from downtown San Diego. Otay Mesa West is on the edge of the San Diego Bay and is home to the Las Americas Premium Outlets and the expansive Otay Valley Regional Park. The park offers horse trails, biking and hiking with views of the Coronado Bay Bridge and the Pacific.
The median home value in Otay Mesa West is estimated at $464,000, which is significantly lower than San Diego as a whole. Even though this is one of the top 10 most affordable places to buy in San Diego, the home values are appreciating, and they’re predicted to rise modestly over the coming year. The median list price per square foot in this neighborhood is around $311, compared to the average for San Diego, which is $471.
There are around 50 homes currently listed for sale in the Otay Mesa West area of San Diego.
Rancho San Diego
Rancho San Diego is in San Diego County, and the residents have a higher income than more than 60% of the neighborhoods in the country. Nearly 30% of the working population in Rancho San Diego works in professional and management occupations.
Rancho San Diego is quiet and offers a variety of housing options, including single-family homes with a larger lot size. Many of the homes were built between 1970 and 1999.
The cost of living is comparatively low in Rancho San Diego, making it one of the top 10 most affordable places to buy a house in San Diego. The median listing price for homes in this community is around $500,000, with the median sales price for three-bedroom homes at $495,000.
Santee
Santee is described by residents as having a small-town feel, and it’s a suburb that ranks regarding the cost of living. The cost of living in Santee is around 4% lower than the rest of California, and the median household income is 40% higher than the national average. The home values in Santee are 11% lower than the rest of California, and the average Santee house price is up to $681,000, a 17.4% increase since last year.
The unemployment rate in Santee is also only 3.1%, with an average commute time of fewer than 30 minutes for residents. Santee also made our list of one of the Top 10 Suburbs to live in San Diego County. With larger lot sizes and more square footage, new listings in Santee don’t last long!
Gaslamp Quarter
Gaslamp Quarter is a bit different from some of the other neighborhoods and communities on this ranking of the most affordable places to buy a home in San Diego. Gaslamp Quarter is less suburban and is closer to downtown San Diego and the Pacific Ocean, attracting tons of young professionals. It’s also very walkable and has a modern, urban big city feel. Depending on what you’re looking for, and particularly if you want a condo, Gaslamp Quarter can be surprisingly affordable!
Gaslamp Quarter is a historic neighborhood, and it’s on the National Register of Historic Places. The current average home value in Downtown San Diego is $577,634. There are less than 20 properties for sale in the neighborhood right now, with many more rental options as well.
Nestor
Nestor is in southern San Diego and is close to Otay Mesa. Nestor is neighbored by Palm City and Otay Mesa West to the east. To the north is Egger Highlands, and San Ysidro is to the south. Notable sites in Nestor include South Bay Salt Works, and the South Bay Drive-In Theater on Coronado Avenue.
The housing market in Nestor is very competitive and the average Nestor house price has climbed to $653,000 up 59.1% since last year. The majority of homes for sale in Nestor are single-family three-bedroom properties, as well as townhouses.
Imperial Beach
Imperial Beach is part of San Diego County’s South Bay area. Imperial Beach is around 14 miles from downtown San Diego, and it’s the most southwestern-located city in the continental United States. Playas de Tijuana and Coronado California border it.
Imperial Beach has convenient shopping, and residents describe it as feeling very working class. At the south end of Seacoast Drive, you can walk your dog along the beach, and some of the most high-end real estate in Imperial Beach is near the pier. Despite the rising prices of homes near the beach, there are still deals and cheap homes to be found in Imperial Beach.
Around 80 homes are for sale in Imperial Beach currently. The median home value in Imperial Beach is around $600,000, but the further inland you go, the lower the prices.
Chula Vista
Chula Vista is an area of San Diego divided into two sections—west of the 805 and east of 805 —with a median income of $81,272. If you’re searching for new construction homes, you might be more interested in moving to the east of 805 area of Chula Vista. That part of Chula Vista features well-kept neighborhoods and many HOAs. West of the 805 is older homes, many of which were built anywhere from the 50s to the 70s.
Chula Vista has very nice weather thanks to the proximity to the bay and beach, and there are deals on homes to buy in Chula Vista because it’s to the south of San Diego City, yet you can still reach the city in around a 15-minute drive.
Chula Vista home prices are up 19.8% compared to last year, selling for a median sale price of $695,000. On average, homes in Chula Vista sell after just 11 days on the market because these relatively cheap houses do not last long!
Palm City
Palm City is located in southern San Diego nearby several of the affordable neighborhoods on our list including Otay Mesa West, Egger Highlands, Nestor, and Chula Vista. Palm City is where California State Route 75 comes together with Interstate 5 as well, so it is a link to Imperial Beach and Coronado.
Palm City was originally established in 1914, named for the palms running along Palm Avenue. There is a San Diego Trolley blue line station within Palm City as well. The median listing home price in Palm City hit $650,000, trending up 30% year-over-year, with a price per square foot of $456.
Most of the property listings in Palm City include three-and four-bedroom single-family homes, many of which were built between the 1970s and 1999.
National City
National City is in southwestern San Diego County, and it’s in the South Bay part of the San Diego metro. National City is home to many points of interest. For example, there is a port area located on the San Diego Bay, which is part of Naval Base San Diego. There is the National City Depot which was built in 1882 and was the first station on the Pacific Coast that was part of the Santa Fe Railway system.
The median sales price for homes in National City with three bedrooms is $455,000. For four bedrooms, the median sales price is around $500,000.
The Cost of Living in San Diego
When you’re exploring the top 10 most affordable places to buy in San Diego, you may already have an understanding that this is an expensive place to live. The weather is beautiful, it’s on the Pacific Ocean, and San Diego and the surrounding suburbs have a lot to offer, meaning real estate for buyers and renters comes at a premium.
From 2000 to 2018, based on data from NeighborhoodScout, there was an annual appreciation rate of 4.85% for real estate. The median prices in many parts of San Diego are high even based on standards for California. According to a report from the California Association of Realtors, the median sales price for homes in San Diego is $850,000. That’s an increase of 13.5% over the last year. Comparatively, the median sold price in Orange County is $1,120,000.
Is San Diego expensive to live?
Yes, San Diego is an expensive place to live, however, there are several areas in California that are pricier. To provide a little more comparison, the median price for a single-family home in median sold price in Orange County is $1,120,000, and $1,822,000 in San Francisco.
Along with buying or renting a home in San Diego, if you’re planning a move to the area, you’ll have to think about other factors affecting the cost of living as well. For example, people in San Diego spend around 12.5% of their total household budget on food.
What salary do you need to live in San Diego?
According to the CAR Affordability Index, the minimum qualifying income in San Diego is $154,800 for a median home price of $800,000. The average monthly payment on a home including taxes and insurance comes to $3,870. Although that is very expensive, it is still more affordable than living in Orange County.
What is the most affordable place to live in San Diego?
Per our latest San Diego Market Report, the most affordable place to buy a single-family home in San Diego County is Calexico with an average sale price of $190,000. However, depending on the particular property you’re interested in, you can find an affordable home in nearly any community in San Diego. A condo will always be the most affordable choice in any neighborhood and remember that it may take some time to build your equity and work your way up to your dream home with a swimming pool and ocean views.
Does San Diego have affordable housing?
Yes, and to understand what is defined as “affordable housing”, we must reference specifically what qualifies for the San Deigo market. According to San Diego’s official website, the median price of a home is more than $500,000 and the U.S. Department of Housing and Urban Development (HUD) defines “affordable” as homes that costs no more than 30% of a household’s monthly income.
By the latest estimates, the median income for a family of 4 in the area is $63,400. Per HUD’s definition then, affordable housing for a low-income family earning up to 80% of the area’s median income, would be $1,500 per month for an apartment, or a home priced under $225,000. For qualifying income levels, check out the federal HUD’s Area Median Income Chart.
Popular San Diego Neighborhoods
Many of the communities on our list of the top 10 most affordable places to buy in San Diego are actually suburbs because these are the places that offer the best prices on housing. Other neighborhoods in San Diego that are less affordable, but very popular and desirable right now include:
Carlsbad
Carlsbad is a very expensive part of San Diego which is around 35 miles north of downtown. There are beautiful beaches, and it’s a walkable community often described as a village. The schools are great, and there’s a laid-back and relaxed atmosphere, making Carlsbad popular with surfers and people who like the outdoors.
Carlsbad is probably best known for the beautiful Flower Fields in the area that bloom every year. Featuring 50 acres of extraordinary color, the Flower Fields bloom from about early March through early May including poppies, tulips, bluebonnets, sweet peas, wildflowers, and other stunning varieties.
The median listing price for homes in Carlsbad is $925,000. Many of the homes are single-family properties, including a lot of ranch-style homes, with three or four bedrooms.
If you have any questions about the local real estate market, reach out to the experts in our First Team Carlsbad – Village, or Carlsbad – Grand Offices.
Encinitas
Encinitas is another area close to San Diego known for high-priced real estate. Around 25 miles north of San Diego’s downtown, Encinitas is also a beach community. The most popular beaches include Swami and Moonlight. It’s considered a chic but also bohemian community.
A visit to this charming beach town isn’t complete without a stroll through their downtown district, known as Encinitas 101. A cool combo of old beach town vibes, and a healthy outdoor lifestyle, residents can enjoy walking from shop to shop nearly any day of the year with everything from great eateries, galleries, and eclectic boutiques and shops.
Hosting several events throughout the year including a Taste of Encinitas during the summer and the Holiday Street Fair, there’s always something exciting going on around town. To learn more about the Encinitas community, chat with one of our local experts in our First Team Encinitas Office.
Little Italy
Little Italy is an increasingly popular neighborhood in San Diego among residents and visitors alike. Little Italy was once the hub of the San Diego fishing industry, but now you’ll find galleries, shops, restaurants, and Amici Park. Little Italy is known as one of the key areas in the San Diego culinary scene as well.
There are hundreds of new apartments recently made available in Little Italy. The residential development in the community represents a significant portion of San Diego’s overall housing supply.
East Village
Another urban neighborhood popular among residents is the East Village. The Easy Village is walkable, and it represents the largest neighborhood in downtown San Diego. East Village is east of the Gaslamp Quarter and southeast of the Core District. The East Village is around 130 blocks of the city, located between Seventh Ave. and 17th St. Around 30,000 residents call this culturally rich and vibrant neighborhood home.
Point Loma
Point Loma is an area that includes five separate smaller neighborhoods. These include Harbor Island, Liberty Station, Loma Heights, Midway District, and Point Loma. Point Loma is known primarily for luxury and high-end real estate as well as multi-family properties. Point Loma is seaside and is on a peninsula bordered by the San Diego Bay and the Pacific Ocean.
Boating and marine life are integral parts of Point Loma, and there are subdivisions like Fleetridge, with beautiful mansions.
Point Loma is also home to the iconic Point Loma Nazarene University, a Christian liberal arts college located on the oceanfront. Visitors to Point Loma often visit the Cabrillo National Monument. Offering a park with trails, tide pools, and exhibits on California’s history, it’s the perfect place to enjoy a day trip and learn about the golden state’s beginnings. Sunset Cliffs Natural Park is also a popular spot to watch the sunset.
Coronado
Coronado is a resort city that connects to San Diego via the San Diego-Coronado Bridge. This is another upscale part of the city, and it’s home to the famous Hotel del Coronado Resort, as well as the biggest West Coast naval base.
If you’re looking for ocean views, opportunities to enjoy the outdoors, a close-knit community with access to downtown, Coronado Island is the place for you. Annual community events include Motorcars on Main Street, a Historic Home Tour, 4th of July Parade, the Coronado Summer Concerts Series, the Coronado Art Walk, Coronado Speed fest, and the Holiday Open House and Parade. Real estate on Coronado is very expensive and ranges from about $1 million to over $30 million.
North Park
North Park is bordered by University Heights, Hillcrest and Balboa Park. It includes smaller sub-neighborhoods like Burlingame and Morley Field. North Park features homes and architecture from diverse periods. For example, there are bungalows from the turn of the century, and more modern architecture as well. Forbes named North Park as one of the best hipster neighborhoods in the country.
Del Mar
Del Mar is a seaside community located north of La Jolla – one of the richest neighborhoods in Southern California – and home to the Del Mar racetrack. The best day to visit the Del Mar racetrack is opening day, occurring every July when visitors dress to the nines in big hats and their Sunday best to enjoy the spectacle.
Del Mar real estate is considered very high-end, with some of the homes being in the tens of millions of dollars. The median price of a home in Del Mar is $2,628,600.
Del Mar is around 20 miles north of the Mexican border, and 120 miles south of L.A. The cost of living in Del Mar is more than 408% higher than the average across the U.S.
If you don’t live in San Diego but want to check it out for the day, take a trip down on Amtrack’s Pacific Surfliner. Riding along California’s beautiful coastline, the train ride is an iconic Southern California experience.
Summing Up—Top 10 Most Affordable Places to Buy in San Diego
San Diego has a lot to offer residents including beautiful weather, beaches, year-round access to outdoor activities, restaurants and culture. Of course, the prices of homes represent all that the southern California city has to offer. However, by going south of San Diego’s downtown, or inland to some of the suburbs, it is possible to find more affordable homes to buy in San Diego.
