How Much House Can You Afford in San Diego? [With Examples]

Dreaming of a home in San Diego’s sun-soaked neighborhoods? You’re not alone! But with home prices as dazzling as the coastline, figuring out how much house you can truly afford is the essential first step. Let’s walk through what goes into calculating your buying power in America’s Finest City—complete with real-life examples to make it all clear.

Key Factors That Shape Your Budget

• Income: Lenders typically suggest spending no more than 28-30% of your gross monthly income on housing costs.
• Down Payment: While 20% is standard, many buyers put down less—especially with first-time buyer programs.
• Debt-to-Income Ratio (DTI): Most lenders prefer a DTI below 43% for a conventional loan.
• Credit Score: Higher scores unlock better rates, saving you thousands over the life of your loan.
• Current Interest Rates: Even small changes can have a big impact on your monthly payment.

San Diego Housing Market Snapshot (2025)

The median home price in San Diego is hovering around $950,000. With property taxes, insurance, and HOA fees, the total monthly cost can add up quickly. Let’s see how this plays out for different buyers.

Example 1: The Young Professional

Income: $120,000/year
Down Payment: 10% ($95,000)
Estimated Monthly Payment: $5,300 (including taxes & insurance)
Affordability: This buyer is right at the edge of the recommended housing budget. Stretching for a single-family home may be tough, but a condo or townhome could be within reach.

Example 2: The Growing Family

Combined Income: $200,000/year
Down Payment: 20% ($190,000)
Estimated Monthly Payment: $5,700
Affordability: With a larger down payment and higher income, this family can comfortably afford the median-priced home—and might even have options in sought-after school districts.

Example 3: The First-Time Buyer

Income: $85,000/year
Down Payment: 5% ($47,500)
Estimated Monthly Payment: $4,200
Affordability: This buyer may need to look at smaller homes or condos, or explore neighborhoods with lower price points. First-time buyer programs can help bridge the gap!

Tips for Maximizing Your Buying Power

• Boost your credit score for better rates.
• Explore down payment assistance programs.
• Consider neighborhoods just outside the city core for more value.
• Work with a local agent who knows the market inside and out.

San Diego’s market can feel overwhelming, but with a clear budget and the right guidance, you can find a home that fits your dreams and your finances. Ready to start your journey?