What’s driving the San Diego real estate market in 2025?
San Diego’s real estate market in 2025 is being driven by strong demand, limited housing inventory, and shifting buyer preferences shaped by remote work and economic trends. Local insights from Peraza Real Estate point to continued growth in key neighborhoods like Otay Ranch, North Park, and Eastlake.
Overview of the 2025 San Diego Market
If you’re thinking about investing in San Diego real estate, 2025 brings both opportunities and challenges. The region continues to attract buyers thanks to its weather, job market, and lifestyle, but inventory remains tight. That imbalance is shaping how buyers, sellers, and investors approach the market.
At Peraza Real Estate, we’re seeing a mix of motivated first-time buyers, long-term investors, and homeowners relocating within San Diego County to take advantage of market conditions.
1. High Demand from Remote Professionals
Remote work is still a major trend, and San Diego’s lifestyle-driven appeal continues to draw tech workers, creatives, and digital professionals. These buyers often aren’t tied to traditional job centers and prioritize neighborhoods with walkability, local charm, and community feel.
Neighborhoods like La Mesa, South Park, Golden Hill, and University Heights are seeing increased competition, especially for updated single-family homes and multi-units under $1.2 million.
2. Tight Inventory Across the County
Housing inventory across San Diego County remains low. According to local MLS data, active listings were down 11% year-over-year in Q2 2025. This trend is especially noticeable in mid-tier price points between $700K–$950K.
In areas like Chula Vista, Clairemont, and Spring Valley, homes are selling within 7–10 days on average, often with multiple offers. This makes it critical for buyers to act quickly and work with experienced agents like Peraza Real Estate, who can move fast and secure opportunities before they're gone.
3. Rising Construction and Infill Development
Developers are stepping in to meet demand, but new construction hasn’t caught up. Most projects in San Diego are small-scale infill developments, especially in areas like North Park, Normal Heights, and parts of National City.
While these help slowly expand the housing supply, it’ll take years for new construction to meaningfully shift the inventory gap. In the meantime, established properties in desirable areas continue to appreciate.
4. Interest Rate Sensitivity
Although interest rates have cooled from their 2023 peak, affordability remains a concern for many buyers. With the average 30-year fixed hovering around 6.25%, monthly payments are still a stretch, especially in markets like Point Loma and Encinitas.
That’s why buyers in 2025 are focused on homes under $900K in high-growth areas with upside potential. Investors, too, are more selective, prioritizing cash flow, ADU potential, and properties with minimal renovation needs.
5. Neighborhoods to Watch
Some areas are outperforming the rest of the market—and that’s where smart investors are paying attention. Based on data and client activity at Peraza Real Estate, here are the neighborhoods we’re watching closely in 2025:
Otay Ranch – Popular for newer builds and high rental demand
Eastlake – A consistent favorite for buyers seeking larger homes
North Park – Trendy and walkable, ideal for multi-unit and short-term rentals
Lemon Grove & Spring Valley – More affordable, with value-add potential
Our team is constantly monitoring neighborhood-specific trends so we can guide you to smart, data-backed decisions.
What This Means for Buyers and Investors
If you're planning to invest or buy in San Diego this year, preparation and speed are key. Partnering with a team like Peraza Real Estate gives you access to:
Off-market and early-access listings
Trusted vendor referrals (lenders, inspectors, contractors)
Local expertise from agents who know neighborhood trends down to the street
Even in a tight market, opportunity exists. It’s all about being ready—and being strategic.
Final Thoughts
The San Diego real estate market in 2025 is competitive, dynamic, and full of long-term potential. Whether you’re a first-time investor or seasoned buyer, success comes down to timing, strategy, and having the right team in your corner.
With deep knowledge of the local market and a reputation built on trust, Peraza Real Estate is here to help you navigate your next move with confidence.
Call to Action
Want personalized help navigating San Diego’s 2025 real estate market?
📞 Contact Peraza Real Estate today to get pre-approved, tour properties, or learn more about how we help buyers win in this market. (619) 920-7345
👉 perazarealestate.com
🫂 Leslie Peraza 01426666. Luis Peraza 02118046. Angelo Peraza 02245695.