Buying San Diego property is a good investment. A booming area with a strong economy that withstands downturns well, this city also offers residents an amazing lifestyle. While it’s true San Diego property is expensive, trends indicate the people buying can afford it. Surprisingly, many of these buyers are younger than most would expect.
Why are Young Buyers Seeking Homes in San Diego?
The industries present in the “America’s Finest City” tilt towards tech, life sciences, and telecommunication. Major companies in the area, such as Qualcomm and Pfizer, attract job seekers, many of whom are young people with science and technology degrees. Individuals looking to land a job in these sectors find the University of California – San Diego (UCSD) Jacobs School of Engineering the ideal stepping stone to help advance their careers.
Between great educational opportunities and well-paying jobs in the city, the pipeline of well-educated younger professionals means a steady stream of people are available to fill open positions. All combined, the San Diego real estate market has shifted to appeal to a younger demographic.
Entrepreneurs Also Flocking to ‘America’s Finest City’
In addition to fledgling professionals jump-starting or advancing their careers in the technology and science industries, young entrepreneurs are also busy launching, growing, and selling their companies. New upstarts in various industries are being grown in the tech, fashion, fitness, health and beauty, food and beverage, and other sectors. Once established, these young upstarts sell their companies for hefty sums and then use the proceeds to buy local real estate as they pursue the coveted San Diego lifestyle.
San Diego Real Estate Market Better than Ever
According to data provided by the Greater San Diego Association of REALTORS’®, the average price of homes jumped from $932,709 in July 2020 to $1,157,308 in July 2021. This is a whopping 24% year-over-year uptick. This, coupled with low-interest rates in U.S. real estate markets over the past year, set the table for hungry appetites when it comes to San Diego coastal real estate.
San Diego realtors are finding they are definitely seeing trends shift towards buyers under 40. Buyers tend to be high-earning professionals and entrepreneurs who have found success in the San Diego area and fall in love with their surroundings. Many pursue buying luxury multi-million dollar properties.
Real Estate Market Strength in San Diego
As in most of the U.S. real estate market, inventory is tight. Homes come on the San Diego market and sell quickly. Sellers have their pick of offers—most well above their asking prices. San Diego is currently the second hottest real estate market in the U.S. The factors that pushed up housing demand in 2020 are expected to continue for now. Considering San Diego real estate doesn’t depreciate, buyers find purchasing property to be a solid investment. Many homebuyers are local, but trends show a growing number of them migrate south from San Francisco to buy luxury coastal homes.
Why the Shoreline is the Place to Be
San Diego is a highly coveted area. With a near-perfect climate, beautiful coastal views, gorgeous inland landscape, and abundant amenities, it’s no surprise young people want to live here. Since San Diego properties only appreciate, many find purchasing to be a smart investment.
Looking to buy property in “America’s Finest City?” Contact a San Diego real estate agent today.