Can You Afford to Retire in San Diego? What Your Home Equity Can Do for You
San Diego's coastal charm, walkable neighborhoods, and sunny climate make it a dream retirement destination, but the cost of living can make that dream feel just out of reach. With housing costs more than double the national average and basic living expenses exceeding $86,000 per year for some couples, retirees often face the challenge of staying financially stable in paradise. Social Security alone doesn’t go far here, covering only about 25% of the average retiree’s needs in San Diego. However, many longtime homeowners in the region are sitting on a financial tool that could tip the scales in their favor: home equity.
According to San Diego senior real estate specialist Melina Rissone, the right equity strategy can mean the difference between leaving San Diego and enjoying your golden years right where you are. Whether you’ve built up significant value or paid off your mortgage entirely, your home can help fund a retirement plan that keeps you rooted in San Diego. In this blog, we’ll explore what retirement really costs here, how reverse mortgages work, and the smartest ways to use home equity to secure your future. If you love where you live, it may be possible to retire right where you are… with the right strategy.
San Diego's True Cost of Retirement
San Diego consistently ranks as one of the most expensive cities in America for retirees. According to Investopedia, housing costs in San Diego are approximately 115% higher than the national average, and overall living expenses are 44% above the norm. For a two-person household, average annual expenses can exceed $86,000—and that’s not including long-term care or unexpected health costs. Even retirees without a mortgage may find that utilities, insurance, and property taxes continue to climb year over year.
Kiplinger reports that Social Security covers just 24–26% of expenses in metro areas like San Diego, well below the ideal threshold for sustainable retirement. Melina Rissone says many homeowners don’t realize that even after paying off a mortgage, property ownership costs in San Diego remain high. “Your home is a valuable asset, but it’s also an ongoing expense. Knowing your true annual costs is the first step toward making a plan that works.
Reverse Mortgages: A Tool for San Diego Homeowners 62+
If you’re 62 or older and have built up equity in your San Diego home, a reverse mortgage, specifically a Home Equity Conversion Mortgage (HECM), could be a game-changer. This federally insured loan allows you to convert your home’s equity into tax-free funds while continuing to live in the property. You can receive money as a lump sum, line of credit, or monthly payments, all without making any monthly mortgage payments yourself. The loan is repaid only when you sell the home, move out permanently, or pass away, and it's structured as a non-recourse loan, meaning you (or your heirs) won’t owe more than the home is worth.
In 2025, the HECM lending limit was raised to $1,209,750, making this option accessible even in high-value markets like San Diego. With median home values around $742,000, many local seniors easily qualify. Melina Rissone advises her clients to consider a reverse mortgage as one possible tool in a bigger housing and retirement strategy. “It’s not the right fit for everyone, but for the right homeowner, it can be a way to stay in San Diego without sacrificing lifestyle.
Beyond Reverse Mortgages: Other Equity-Based Strategies
Reverse mortgages aren’t the only way to unlock your home's financial potential. Downsizing is a tried-and-true option: many retirees sell their larger family homes and move into smaller, more manageable properties, freeing up cash and reducing monthly expenses. Melina specializes in assisting seniors with downsizing in San Diego. Others are taking advantage of California’s favorable ADU (Accessory Dwelling Unit) laws to create rentable spaces on their property, generating supplemental income while aging in place.
A Home Equity Line of Credit (HELOC) is another flexible option, allowing you to borrow as needed for home repairs, travel, or healthcare expenses. For retirees not ready to leave their homes, some consider partial equity buyouts or shared equity programs. According to Hill Wealth Management, combining equity strategies with passive income and low-risk investments provides the best financial cushion in a high-cost market. The key is to treat your home as both a place to live and a strategic financial asset. With the right approach, your equity can give you real options in retirement.
Conclusion
Retiring in San Diego is possible… but not without a plan. The high cost of living means you’ll need to go beyond Social Security and tap into other resources, especially if you want to stay in your home and community. For many, home equity represents a powerful financial tool—whether through a reverse mortgage, downsizing, or rental income from an ADU. Each strategy comes with pros and cons, but with careful planning and professional guidance, your home can help fund the lifestyle you’ve worked for.
Melina Rissone knows that each homeowner’s needs are unique, and having a Realtor who understands both the San Diego market and senior living considerations makes all the difference. If you’re ready to explore what your equity can do for your retirement, let’s talk about how to make your next chapter in San Diego not only beautiful, but financially secure.
Melina Rissone, Associated Real Estate Broker Coldwell Banker Global Luxury, Certified Senior Advisor (CSA) and Real Estate Collaboration Specialist – Divorce (RCS-D) in San Diego. I help people going through divorce in San Diego figure out what to do with the house—whether you're ready to sell now or just need a neutral opinion. I help seniors looking to retire in San Diego figure out what to do with the house—whether you're ready to sell now or just need a neutral opinion.
Melina Rissone
Having sold properties for more than 20 years and earning various prestigious awards throughout the course of her career, Melina Rissone has more than earned her reputation as one of San Diego's most skilled and trustworthy real estate brokers selling homes and luxury condominiums. Her loyal clientele would share that Melina brings structure and planning to chaos. She specializes in supporting her clients and their referrals; families and individuals going through divorce and seniors and active adults planning their moves and financial decisions during their retirement years.
Coldwell Banker Global Luxury and Institute of Luxury Home Marketing certified.
Certified Senior Advisor by the Society of Certified Senior Advisors
Cartus Network Inventory Specialist and Cartus Network Marketing Specialist since 2015.
RCS-D Designation, a Real Estate Collaboration Specialist for Divorce.
SRES Certification through NAR is a Seniors Real Estate Specialist certification.
Melina is bilingual in English and German.
Recognized as the Top 4% of all real estate brokers in San Diego County in 2021 and the Top 3% of Coldwell Banker International.
Coldwell Banker Presidents Elite Award.
Recognize as the Top 2% of Coldwell Banker West in 2024.
Coldwell Banker Global Luxury and Institute of Luxury Home Marketing Certified.
We were looking to buy a place in SD Northpark and luckily we met up with Melina to show us multiple condo. She is very friendly, personable and very professional agent. We would not hesitate to work with her again.
-Chau N.
