Homeownership in San Diego Now Requires More Than Double the Income of Renting

San Diego has long been one of the most desirable places to live in California. But as housing prices rise and wage growth stalls, the income gap between renting and buying is growing wider than ever. At Lending Bee, we help clients understand these challenges—and overcome them with smart, personalized mortgage solutions.

The Numbers Tell the Story

According to recent data, the annual income needed to buy a median-priced home in San Diego is now around $241,200. That’s a 4.3% increase from last year. Meanwhile, the income needed to rent a median-priced apartment has dropped to about $106,200, down 5.7% over the same period.

This means prospective buyers need more than twice the income of renters just to afford a typical home in the same city.

San Diego Buyers Face Steep Climb

Further research shows even more dramatic numbers. Zillow’s affordability calculator estimates a household needs $273,600 to $275,000 per year to comfortably afford a typical home in San Diego, assuming a 30% housing cost-to-income ratio (NBC San Diego).

That’s nearly triple the median household income in San Diego County, which hovers just under $97,000. The result? Homeownership feels out of reach for the average family.

What’s Driving the Income Gap?

High Prices and Higher Rates

San Diego’s median home price is now above $1 million, driven by ongoing demand and limited inventory. Mortgage rates, while lower than their 2023 peak, are still in the 6%–7% range. For many buyers, this combination of price and rate results in monthly payments exceeding $5,000, even before taxes and insurance.

Renters, on the other hand, have seen modest declines in pricing. Stabilizing rents have widened the gap between monthly rent and mortgage costs—pushing more households to delay buying.

Wages Can’t Keep Up

While home prices have increased by over 30% since 2020, wage growth has been much slower. This disparity is especially painful for younger buyers and middle-income families who may not qualify for high loan amounts without significant savings or a co-borrower.

Why This Gap Matters—and How Lending Bee Helps

Homeownership Shouldn’t Be Out of Reach

At Lending Bee, we understand the financial pressure today’s buyers face. But we believe homeownership is still possible—with the right guidance, preparation, and mortgage strategy.

We work with each client to evaluate income, credit, and financial goals to determine whether buying is a smart move now—or whether it makes sense to wait and prepare.

Renting Can Be a Smart Move

Choosing to rent isn’t a failure—it’s a strategic decision for many households. Renting allows flexibility, lower upfront costs, and time to build savings. At Lending Bee, we help clients use this time wisely by planning for future homeownership through:

  • Credit improvement advice
  • Down payment savings plans
  • Pre-approval preparation
  • Monitoring rate and market shifts

By working with Lending Bee early, renters become well-positioned buyers later.

Real-Life Example: When Renting Makes More Sense

The $225K Decision

One San Diego couple shared their story with Business Insider. Despite earning $225,000 annually, they chose to rent rather than buy. The reason? Their estimated mortgage payment for a $1.1M home would be $5,300 per month, excluding taxes and insurance. By contrast, they rented a spacious 2-bedroom for $3,795, saving over $1,500 monthly.

That extra money went toward savings and travel, not debt. They weren’t “house-poor”—and they felt empowered by their choice.

Lending Bee supports these decisions. We don’t push buyers into unaffordable homes. We help them make informed choices that align with long-term financial well-being.

Lending Bee Provides a Better Way to Navigate the Housing Gap

Expert Mortgage Guidance in a Complex Market

The San Diego housing market can be overwhelming. Lending Bee provides clear, honest answers to important questions like:

  • What can I actually afford?
  • How does my income compare to lending requirements?
  • Should I rent now and buy later—or buy now with a creative financing plan?

We walk you through every option, every step.

Customized Loan Solutions

Lending Bee offers a wide range of mortgage options tailored to San Diego’s unique market:

  • Low down payment programs
  • Jumbo loans for high-priced properties
  • First-time buyer incentives
  • Interest rate buydowns
  • Bridge loans and investment property financing

With us, you’re not stuck with cookie-cutter mortgage offers. You get a plan built around your goals, your timeline, and your budget.

Future-Focused Financial Planning

Even if you’re not ready to buy today, Lending Bee helps you prepare for tomorrow. Our clients benefit from:

  • Personalized affordability assessments
  • Guidance on improving DTI (debt-to-income) ratios
  • Education on market conditions and rate trends
  • Ongoing support until you’re ready to make your move

We’re in it for the long haul—because your success is our success.

Don’t Let the Income Gap Stop You

Yes, the income gap between buying and renting in San Diego is real—and growing. But with Lending Bee, you’re never navigating it alone.

We provide expert advice, mortgage solutions, and long-term support to help you make the best financial decisions—whether you’re buying now or preparing for later.

The market may be tough, but Lending Bee makes it manageable. Reach out today to explore your options, and let’s turn uncertainty into opportunity.