What’s the Real Cost of Homeownership in San Diego?

Owning a home in San Diego means more than just paying your mortgage. You’ll need to account for property taxes, insurance, maintenance, utilities, and the lifestyle expenses that come with living in one of the most desirable and competitive housing markets in the country. Knowing the full picture helps you plan, budget, and avoid surprises.

Why “List Price” Isn’t the Whole Story

When you see a San Diego home for buy at $900,000, that’s just the starting point. The true cost of homeownership depends on several ongoing expenses:

Mortgage payments — based on your loan amount, interest rate, and term.
Property taxes — California’s base is 1% of assessed value, plus local voter-approved bonds; in San Diego County most bills are slightly above 1%, so a $900,000 home may mean roughly $9,300–$9,600 per year.
Homeowners insurance — typically $1,300–$1,600 annually for around $300,000 in dwelling coverage, though rates vary by location and policy.
HOA dues — common in condos and planned communities, with a county median of about $360 per month and luxury towers often exceeding $1,000.
Maintenance and repairs — plan for 1%–4% of the home’s value per year depending on the property’s age and condition.

This is why tools like a home buy calculator are so useful — they help you estimate your monthly and yearly costs before you commit.

The San Diego Factor: Location Drives Cost

If you’re searching for a home to buy near me in San Diego, you’ll notice a wide range in prices depending on the neighborhood:

North Park / South Park — Craftsman charm, strong walkability, $943K–$1.05M median home prices.
La Jolla — Ocean views, luxury amenities, $2.4M–$2.5M median prices.
Chula Vista / Eastlake — Newer builds, family-friendly, around $755K median.

Melina Rissone, Associate Broker with Coldwell Banker West, notes that “Location in San Diego doesn’t just change the purchase price — it affects ongoing costs like insurance, HOA fees, and even utility usage.”

Beyond the Mortgage: Hidden Costs Many Buyers Miss

Even after you close on your San Diego home, there are additional expenses to plan for. Closing costs usually range from 2%–5% of the purchase price and are due upfront. You may also need to budget for furnishings, upgrades, commuting costs if your neighborhood lacks public transit, and higher lifestyle expenses if you live near beaches, dining, and entertainment. This is where comparing home buy vs rent can be valuable. In some neighborhoods, renting may cost less monthly, but you’re not building equity.

Programs That Can Help Lower Your Costs

If you’re concerned about affordability, there are options:

Home buy grants — available for qualifying first-time buyers.
Home buy programs — such as CalHFA’s MyHome Assistance Program and new 2025 CalReady loans, which offer down payment help and flexible terms.
No-money-down options — for VA loans and USDA-eligible areas in San Diego County.

Melina Rissone can connect you with trusted local lenders to explore whether you can buy a home with no money down, or if a specific program could reduce your upfront costs.

The Cost of Waiting

San Diego home prices have trended upward over the last decade, with most neighborhoods seeing steady appreciation. While interest rates can fluctuate, demand in areas with strong job markets, top school districts, and lifestyle appeal continues to keep prices competitive. Waiting to buy could mean paying significantly more later, both in higher purchase prices and potential increases in borrowing costs.

The Cost of Waiting

If you’re considering a purchase in Point Loma, be prepared to move fast. Homes are often selling in two weeks or less, so getting pre-approved and working with an experienced Point Loma real estate agent like Melina Rissone can help you act confidently when the right property comes along. Since sale prices are averaging about 96% of asking, you’ll need to come in with strong offers, but you may have room for negotiation depending on the property.

How to Plan Your Purchase Confidently

If you’re ready to explore a home for buy in San Diego, here’s how to start:

Use a home buy calculator to determine your price range.
Factor in property taxes, insurance, and HOA fees.
Research neighborhoods and compare total costs — not just the mortgage.
Get pre-approved before you start viewing properties.

Partner with a San Diego real estate expert like Melina Rissone, who can guide you through the home buy process from start to finish.

Final Thoughts

The real cost of homeownership in San Diego isn’t just about what you offer on a home — it’s about the ongoing financial responsibilities that follow. Beyond your mortgage, you’ll be managing property taxes, insurance, upkeep, and the lifestyle choices that come with living in such a high-demand area.

Taking the time to plan thoroughly, understand your financing options, and account for all recurring costs can help you avoid unexpected stress down the road. With the right planning, resources, and local expertise, you can make a smart purchase that supports your lifestyle, safeguards your investment, and positions you for long-term stability in the San Diego market. Contact Melina Rissone for guidance!

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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
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.

Melina is on point, extremely resourceful and well connected. She has a very versatile knowledgebase so was able to help guide us in many areas I was not even expecting from an agent. I've referred her to several friends who all reported great experiences. She takes her role in representing her client very seriously so its not like some kind of half time gig thing. She gets it done.

-Dan C.