San Diego's Housing Market Holds Its Breath at $925,000
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San Diego County's housing market has spent the past two years moving almost nowhere. The May 2026 countywide median home price landed at $925,000 — essentially flat year-over-year and, notably, nearly unchanged from two years prior.
The inventory picture underneath that flat number is striking: active listings are down 12.4 percent year-over-year countywide, with North County experiencing a nearly 30 percent drop compared to a year ago. Despite that supply squeeze, North County's median held at $1,029,990 in May, and homes are sitting on the market for roughly 28 days in North County and 33 days countywide — well short of the frenzied pace seen in prior San Diego boom cycles.
The explanation lies with buyer constraints. Elevated mortgage rates are suppressing purchasing power enough to offset what would normally be strong upward price pressure from low inventory, producing what amounts to a strange equilibrium: sellers hold supply leverage, but buyers lack the financing muscle to push prices higher. A household purchasing the median-priced home with a standard 20 percent down payment would need a qualifying income well above $200,000 — out of reach for most San Diego families. The buyers active in today's market are largely existing homeowners trading up, purchasers with substantial down-payment assistance, or cash buyers.
Construction continues on Navajo Family Apartments in San Carlos — a 45-unit affordable housing development at 7005 Navajo Road, eight units of which are reserved for adults with intellectual or developmental disabilities. Financing for the project draws on the San Diego Housing Commission, the mayor's office, and the county's Innovative Housing Trust Fund, reflecting the layered public funding structures that affordable construction requires in the current cost environment. The county's June 25 budget includes $93.1 million allocated for affordable housing.