San Diego Homebuyers Face Rising Costs but New Programs Offer Hope
If you’re trying to buy a home in San Diego, you’re not alone in feeling the squeeze. As Ken Kaplan explains, the market is as competitive as ever—especially for first-time buyers looking for affordability in a region known for sunshine and sticker shock.
The State of the San Diego Housing Market
San Diego continues to be a seller’s market, with high demand and limited supply making it difficult for buyers to find affordable options. For many, the dream of homeownership feels just out of reach. Yet, there’s still opportunity, especially with guidance and a strategic approach.
Interest Rates: Holding Steady, But Still Elevated
After months of volatility, interest rates have shown signs of stability. According to Kaplan, current averages include:
- 15-year fixed: ~6.0%
- 30-year fixed: ~6.875%
- FHA/VA 30-year fixed: ~6.375%
While these rates aren’t historically low, they’ve been steady over the past month. If you’re planning to stay in your home for seven years or more, it may still be a good time to buy—especially when considering long-term equity growth and tax benefits.
First-Time Homebuyer Programs Make a Difference
Affordability may be a challenge, but there’s help out there. Kaplan highlighted a number of first-time buyer programs that offer either loans or outright grants for down payments. These include:
- California’s “Dream for All” program – a first-come, first-served initiative that helps buyers secure down payments
- City-specific grants – often forgiven after a certain period of ownership
- Income-based qualifications – while these programs are helpful, many come with income caps to ensure the support goes to those who need it most
Kaplan encourages potential buyers to act quickly, as funding for these programs is limited and demand is high.
An Affordable Gem in La Mesa
Not every home in San Diego commands a million-dollar price tag. A standout affordable option is a one-bedroom, one-bath property in La Mesa. With nearly 700 square feet of living space, the home offers:
- Newer hard surface flooring
- Energy-efficient windows
- Designated parking
- Access to a pool, spa, BBQ area, and grassy park-like surroundings
The location is also a winner—just steps from the La Mesa village, farmer’s market, and community events. It’s ideal for a first-time buyer or anyone looking to downsize into a walkable neighborhood.
Listed at $350,000
Luxury Living in Mount Helix
At the other end of the spectrum is a luxury estate in Mount Helix. This gated property features:
- 7 bedrooms, 8 baths
- 5,470 total square feet, including a 1,000-square-foot guest house
- Saltwater pool, tennis and basketball courts, and a private well for landscaping
- 51 solar panels and high-end kitchen appliances (Sub-Zero, Viking)
With panoramic views and no real competitors in the market, Kaplan predicts the home won’t last long—especially for buyers seeking privacy, size, and amenities rarely found in San Diego County.
Priced at $4,995,000
Homeownership Has Its Tax Perks
Beyond the property features, Kaplan emphasized the financial upsides of buying over renting. Tax deductions on mortgage interest and property taxes can make monthly payments more manageable, especially when paired with the long-term appreciation of real estate. For many, the math just works out better on the buying side.
