Do These San Diego Neighborhoods Still Have Room to Grow? My Picks for Long-Term Value
San Diego offers a vibrant mix of neighborhoods and each with its own personality, architecture, and market behavior. Whether you're a buyer seeking long-term value, an investor scanning for opportunity, or a local keeping an eye on trends, knowing where the market is shifting can be helpful. This article presents six neighborhoods with notable growth or surprising price dips as of mid-2025. Some offer premium stability, while others may present a rare window for buyers to enter. Here’s a closer look at where long-term value still lives in San Diego real estate.
Bankers Hill: Historic Meets High-Rise
Just north of downtown and bordering Balboa Park, Bankers Hill has emerged as a standout in 2025. Home values jumped 27.3% year-over-year, with the median price now around $1.4 million. The blend of 1920s charm and modern towers like 41West continues to attract professionals and second-home buyers.
Its walkability, skyline views, and central location have created a high-demand environment where inventory moves quickly. Though the price point is high, limited availability and lifestyle appeal make it a consistent favorite for buyers with long-term goals. Bankers Hill is holding its value and then some.
South Park: Tight Inventory, High Demand
Prices in South Park declined by 7.2% in the past year, but that drop may signal a strategic opportunity. This tightly held, character-rich neighborhood hasn’t lost its appeal. Historic craftsman homes, tree-lined streets, and a strong local business community continue to attract buyers who value authenticity over trends.
With no room for large-scale development, supply remains constrained. The neighborhood still commands a premium for its unique vibe and walkable layout. For those who want to buy into charm and community, South Park’s temporary softness might be the opening they’ve been waiting for.
Point Loma: Coastal Resilience
While the broader Point Loma market dipped 5%, the Peninsula submarket is up 5% and moving fast. Homes there average just 20 days on market. Median pricing sits around $1.63 million, with view properties, marina access, and walkable pockets like Liberty Station continuing to command top dollar.
Point Loma Highlands is also seeing an 11% increase. This area’s micro-markets reveal that while some segments may be cooling, others are heating up. Buyers focused on lifestyle and long-term equity are still investing heavily in this scenic coastal enclave.
North Park: A Buying Window?
After years of red-hot growth, North Park posted a modest 2% increase this year. Median home prices hover around $1 million. While that’s a far cry from the double-digit surges of previous years, it may represent a healthy market correction—not a value loss.
Breweries, local shops, and the weekly farmer's market keep the neighborhood culturally relevant and highly livable. For those previously priced out, this could be a renewed chance to enter one of San Diego’s most dynamic communities. Momentum is likely to rebound.
University Heights: Underrated, but Undeniable
University Heights may not get the headlines, but it just posted a staggering 57% year-over-year price increase, with homes averaging $1.09 million and spending just 27 days on market. It’s a tight market with only a dozen active listings at a time, but demand is strong.
Canyon views, charming architecture, and proximity to North Park without the traffic are all part of the draw. As one of San Diego’s smaller neighborhoods, the blend of low inventory and high desirability makes it a compelling area for long-term value seekers.
Little Italy: Downtown’s Steady Performer
Little Italy saw a 5% dip in average sale price this year, now averaging $690,000 according to Zillow. But list prices are holding steady and rental demand remains high. This area balances vibrant lifestyle appeal with strong investor interest, particularly among Airbnb hosts and second-home buyers.
The waterfront location, celebrated food scene, and walkable layout continue to keep this market stable despite broader downtown volatility. It may not be the cheapest downtown option, but it’s among the most livable and consistent.
Conclusion
San Diego’s real estate market isn’t moving in one direction—it’s moving in six. From the appreciation in Bankers Hill and University Heights to the subtle shifts in Point Loma and North Park, each neighborhood tells its own story in 2025. South Park may offer a rare price break, while Little Italy continues to reward long-term investors with resilience. The key is understanding what fits your goals, whether that’s timing the market, maximizing lifestyle, or investing in future equity. For accurate, up-to-date insights and personalized neighborhood guidance, reach out to schedule your consultation today.
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.
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.
