What should you know about real estate investment in San Diego?
If you're considering real estate investment in San Diego, you’ll need to understand local market dynamics, neighborhood trends, and what makes this city attractive to long-term investors. Working with a trusted local team like Peraza Real Estate can make all the difference.
Why San Diego is a Top Real Estate Investment Market
San Diego offers strong fundamentals for real estate investors: steady population growth, limited housing inventory, and consistently high demand for rentals. According to the Greater San Diego Association of REALTORS®, the median home price in San Diego County was approximately $985,000 as of May 2025, up 6.2% year-over-year. This sustained appreciation highlights long-term investment potential.
With its thriving biotech sector, strong tourism economy, and proximity to the U.S.–Mexico border, San Diego continues to attract both domestic and international investors. Rental demand remains high, especially among military families, students, and young professionals.
Best Neighborhoods to Invest In
Not all neighborhoods offer the same return on investment. Here are a few to watch:
North Park – A trendy, walkable neighborhood with high rental demand and steady appreciation.
Chula Vista – Attracts families and military personnel; new developments are fueling growth.
City Heights – An up-and-coming area with competitive pricing and increasing redevelopment.
La Jolla – Luxury coastal homes ideal for long-term equity and short-term vacation rental opportunities.
Otay Ranch – A newer master-planned community with strong demand and modern amenities.
Working with Peraza Real Estate, which has deep knowledge of these micro-markets, ensures you target the right location for your goals.
Common Investment Strategies
Here’s how most investors approach the San Diego market:
Buy and Hold: Purchase a home or condo, rent it out, and benefit from appreciation over time.
Short-Term Rentals: Properties near the beach or Gaslamp Quarter often perform well on platforms like Airbnb and Vrbo (check local regulations).
ADU Development: Adding an accessory dwelling unit can significantly boost rental income.
Multifamily Investing: Duplexes and triplexes offer multiple income streams and hedge vacancy risk.
Peraza Real Estate can help you analyze which strategy best fits your budget, timeline, and comfort with property management.
What to Watch Out For
Before investing in San Diego real estate, consider the following:
Zoning and Permits: San Diego enforces detailed building and zoning regulations, especially for ADUs and multifamily conversions.
Short-Term Rental Restrictions: Some areas limit vacation rentals. Make sure to verify if permits are available and transferable.
Maintenance and Renovation Costs: Older homes, especially in coastal or historic neighborhoods, may require significant upgrades.
High Entry Prices: While appreciation potential is strong, upfront costs are high. Proper financing and a long-term plan are critical.
Due diligence is essential. Peraza Real Estate helps clients navigate these complexities to avoid costly mistakes.
Why Work with Peraza Real Estate?
Peraza Real Estate isn’t just another real estate team — they specialize in helping buyers, sellers, and investors build smart, strategic portfolios in San Diego. Their team understands neighborhood trends, market timing, and local regulations, offering investor-focused service rooted in experience and honesty.
Clients trust Peraza because they don’t chase sales — they prioritize fit, timing, and long-term value. Whether you're buying your first duplex or seeking off-market deals, their insight makes all the difference.
Final Thoughts
Real estate investment in San Diego isn’t just about buying property — it’s about understanding the market, anticipating risk, and making smart decisions. With so many moving parts, working with a team like Peraza Real Estate provides a serious edge.
They’ve helped investors across all price points successfully enter and scale in the San Diego market — and they’re ready to help you next.
Ready to explore your options?
📞 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.