How are we doing?
Housing in 2025 received a thumbs-down rating, as housing costs remained expensive for San Diego residents, renters and homeowners alike. Median home prices hovered around one million dollars, and only 13% of residents in San Diego County could afford a median-priced home. Additionally, over half of the county’s renters are housing-burdened, meaning they spend more than 30% of their income on rent. For some residents, moving out of the region is the best cost-saving action they can take. The Nonprofit Institute found that nearly two-thirds of San Diegans are considering moving out of the county, with 77% citing the high-cost of living as the primary reason.
Rating: Worsening
Housing costs continue to challenge San Diego County in 2025
Hindered homeownership
The Housing Affordability Index (HAI) measures the percentage of individuals earning the minimum income necessary to afford a single-family home at the median price. For California and San Diego County, there has been a consistent decline in the HAI since 2020. In the second quarter of 2025, the HAI was 13% for San Diego County, meaning that only 13 of 100 residents can afford a median-rate home. The California Association of Realtors reported that the minimum annual income needed to afford a median-rate home was $263,200.
What is the cost of a median-rate, single-family home in San Diego County? According to the California Association of Realtors, the median single-family home price in San Diego County in September 2025 was $990,000, which is an 89% increase from the median-home price of 2015 ($525,000).
The U.S. Census collects data on housing burdened households, or homeowners that are spending more than 30% of their income on housing payments. This includes mortgage payments, taxes, utilities, and other fees. The most recent data from 2024 found that 39% or four out of ten homeowners in San Diego County were housing burdened. This figure is on par with the state average. The rate of housing burdened homeowners varies across counties, but have remained relatively unchanged for the past four years.
Renting in San Diego
The housing burden of renters painted a more dire picture of San Diego and California. In San Diego County, 58% of renters were rent burdened in 2024. For the state, 56% of California renters were rent burdened, meaning they spent more than 30% of their income on rent, utilities, and renter’s insurance. The high cost of housing and other essential expenses poses a serious threat to Californians. The Real Cost Measure found that 35% or 3.8 million families in California do not earn enough to afford basic needs.
For some low-income households, seniors, and disabled individuals, federally-subsidized housing may be a viable housing option for them. The Housing and Community Development Act of 1974 created the Section 8 Program, which pays private landlords on behalf of the renters. A key parameter in this housing program is the Fair Market Rent (FMR). The FMR is calculated by the U.S. Department of Housing and Urban Development and establishes the payment standards for the Housing Choice Voucher program. FMR represents the rate that would be considered fair (just below the median value) for renting a property in a specific location.
In the San Diego County area, the FMR for a two-bedroom unit in 2025 was $2,881 per month, which is a 107% increase from the 2015 figure of $1,390. The consistent increase in the FMR over the years reflects more than just inflation-related changes, but also the lopsided availability of housing that drives prices upward. Obtaining a safe, non-luxurious standard housing unit is more difficult than before. To afford a FMR 2-bedroom unit at $2,881 a month, a household would need to earn $55.40/hour in order to avoid spending more than 30% of their income on rent.
Housing development
All local governments in California are required by the state to formulate housing plans toto meet the housing needs of their communities comprehensively. A crucial element of these housing plans is the Regional Housing Needs Allocation (RHNA), which establishes both the affordability level and the quantity of new homes required to meet projected housing demand within a region. The California Department of Housing and Community Development (HCD) is responsible for determining the RHNA targets for each region in the state. New plans are established every eight years. For Los Angeles, Orange, Sacramento, and San Diego counties, the latest cycle (6th Cycle RHNA Plan) commenced in 2021.
Based on the goals set for the 2021-2029 RHNA cycle, as of the collection of this data in August 2025, the San Diego region has met 55% of housing needs for communities with above moderate incomes and 13% of housing needs for communities with very low, low, or moderate incomes. Recent housing data shows that the fastest growth in housing development is occurring in the downtown neighborhoods of Bankers Hill, Hillcrest and North Park. Each jurisdiction has its own RHNA housing development goals, some more feasible than others. A study by researchers at the University of San Diego and San Diego State University found that San Diegans support affordable housing, but not unconditionally.
Understanding homelessness
Although homelessness is the result of a complex set of social conditions, a lack of affordable housing is one of the driving factors contributing to homelessness in the region. Lags in providing secure, affordable housing and rising housing costs leave many San Diegans without stable housing options.
Each January, San Diego County conducts a Point in Time Count (PITC) of the number of individuals experiencing homelessness. During the 2025 PITC, the Regional Task Force on Homelessness counted 9,905 people experiencing homelessness. In the 2024 PITC, 10,605 individuals were experiencing homelessness. The number of homeless individuals decreased by 6.6% according to these counts.
Related Indicators
- Employment and Income
- Transportation
- Outdoor Access
Individuals spending more than 30% of their income are considered housing burdened. Learn more about earning a self-sufficient wage and income inequality in the region on the Employment and Income page.
Why is housing important?
High quality of life means the region boasts a thriving economy, a healthy environment, and is an equitable place for all San Diegans to grow and prosper.
Economy
A San Diego Housing Commission report estimates the impact that high housing costs have on the economy. When residents are spending more of their income on housing, less of their income is spent back into the economy. This makes the region less competitive than other metropolitan regions in attracting and retaining businesses and a talented workforce. The local economy loses an estimated $2.4 billion annually because of the disposable income that gets diverted to housing costs. The region also loses an estimated $73 billion and 275,000 new jobs due to foregone construction of housing that would have been created to meet the actual housing needs.
Environment
Investing in affordable housing built near amenities and transportation hubs can help avoid greenhouse gas emissions. To save on housing costs, workers may live further away from their place of employment, increasing their commuting time, and in turn, their carbon footprint. The State’s Affordable Housing and Sustainable Communities program, which funds affordable housing projects integrated with low-carbon emission transportation, has helped avoid 5.7 metric tons of greenhouse gas emissions.
Equity
As outlined in the California Housing Partnership’s 2019 Statewide Housing Needs Report, low-income households are disproportionately burdened by the lack of affordable housing in the state. Among the lowest-income households in California, 76% spend more than half of their income on housing costs.Additionally, people of color disproportionately experience homelessness in San Diego. Black residents represent only 4.7% of the population, but 21% of the homeless population.
Regional Response
Policies
The State Bill 79 on housing development near transit passed in October 2025, greenlighting the development of housing near certain transit stops regardless of local zoning laws. For San Diego, this means housing can be built near the trolley stations and any rapid bus lines with their own lanes.
The San Diego County’s Housing and Community Development Services is developing their 2026-2027 Annual Plan Strategy to provide guidance on project selection and prioritization of funding.
Projects
Under the 6th round of the City of San Diego’s “Bridge to Home”, there is $15 million available to fund low and moderate income housing and property acquisition.
UC San Diego’s Homelessness Hub offers data and visualization tools to support research and policy development for the unsheltered in San Diego County.
The Urgent Challenges Collective at the University of San Diego funds and supports interdisciplinary and actionable research related to homelessness and affordable housing in San Diego.
Partnerships
San Diego Regional Alliance for Fair Housing is a group of professionals dedicated to ensuring residents of San Diego County have equal access to housing. Members include government entities, housing providers, and nonprofit fair housing advocates.
CSA San Diego County is a local nonprofit that partners with other organizations to promote social justice and public welfare in areas such as housing discrimination and human trafficking prevention.
What are we tracking?
We measure housing affordability by tracking the California Association of Realtors’ Housing Affordability Index. This index measures the percentage of households that can afford a median home priced at the national average mortgage rate with a standard 20% down payment and typical monthly costs (taxes, mortgage, insurance). We track year-over-year changes in median single-family home prices and the percentage of households paying more than 30% of their income on housing. Additionally, we track Fair Market Rent and San Diego County’s progress in meeting its housing needs through the California Department of Housing and Community Development.