21 Jun Survey: San Diego real estate return is the longest in the country
On average, it takes four years to break even on a home in San Diego — the most time of any other metropolitan area in the country. That’s according to a recently released real estate study which examined San Diego real estate and found it takes a four-year break-even point before it becomes more financially advantageous to live in a home rather than rent it in San Diego County.
Not surprisingly, San Diego beat national averages in this category – but it may not be cause for celebration yet. On average, the break-even point nationally was one year and eight months during the first quarter of the year. San Diego’s was three years and seven months during the first quarter of 2016. The area’s increasing home prices, ironically, don’t help.
The new study comes as affordability remains an issue amid a sellers’ market that has put the pinch on the housing budgets of would-be first time homeowners as median prices of homes for sale in San Diego County have crept up. In San Diego, the study found income growth was at 1.3 percent and employment growth at 2.8 percent – not enough to keep up with steadily rising prices of homes for sale in San Diego.
The study found median home prices at $507,100 and monthly rent of $2,383. The figures are hire than CoreLogic, which reported median home prices of $489,000 in April and average rent of $1,618 in March, according to a separate study. San Diego real estate has roared back from pre-recession levels, but have not quite hit the peak of $575,000 in November 2005.