After the pandemic, San Diego properties have been hitting an all-time high of $700,000.
On the other hand, in November 2023, the median listing price of a San Diego home was around $949,900, which was a 10.3% YOY growth.
These staggering values show that one of the main issues while buying a property in San Diego is affordability.
However, if you follow the local and national housing laws provided by the government, you can find various houses within and around your budget.
Want to know the important tips when buying a property in San Diego? Then, let’s get started!
1. San Diego Housing Commission
The San Diego Housing Commission (SDHC) provides deferred loans and grants to homeowners to help them buy their first homes. This commission benefits middle- and low-income families who want to buy their first home.
The SDHC First-Time Homebuyers Program can help people purchase a single-family home, townhome, or condominium in San Diego.
They offer a 3% interest rate, a deferred-payment loan program, a closing costs program, and a closing costs forgivable loan program.
All these programs are mostly funded by the US Federal Government organization, which consists of the US Department of Housing and Urban Development (HUD) and the HOME Investment Partnerships Programs, which give grants.
2. Competitive Market
Unfortunately, the San Diego housing market is very competitive. According to statistics, the Redfin competitive score for purchasing a house in San Diego is 72, which comes out as “very competitive.”
Many homes even get multiple offers, with some offering waived contingencies. The average home sells for about 1% below the listing price, whereas the pending time is 31 days. The more popular homes sell 1% above the list price and go pending in about 12 days.
Nearly 3% of homebuyers moved to San Diego from nearby metros. In fact, homebuyers in Los Angeles moved the most to San Diego as compared to any other metro city, followed by San Francisco and then Washington.
3. Reduction in Labor Requirements
The Below Market Rate (BMR) law in San Diego recently changed labor requirements. The law previously applied costly “skilled and trained workforce” labor requirements to many home projects.
However, the “skilled and trained” portion has been removed for most projects, except for those more than 85 feet in height.
Even then, only a prime contractor who receives at least three bids for the construction work can meet the “skilled and trained” clause.
If you’re looking to buy a home that falls under this category, you can consult a property lawyer San Diego to guide you, as they’re well-equipped with local housing and other relevant laws.
4. Housing and Land Use laws
There are several types of housing and land use laws depending on your family type. So, let’s check them out:
Single Family Lot Splits (SB 9)
SB 9 allows the development of up to 4 housing units on lots in specific single-family residential zones by letting them split up and build two units, one main housing unit and one Accessory Dwelling Unit (ADU).
Starter Homes on Multifamily Lots (SB 684)
SB 684 allows certain home projects to be subdivided into 10 lots to develop up to 10 housing units. The minimum lot size can be scaled down to 600 square feet.
Housing in Commercial Zones (SB 6)
SB 6, or the Middle-Class Housing Act of 2022, allows housing zones in retail areas that contain offices, parking spaces, and other commercial spaces. SB 6 creates both a ministerial and a discretionary approval process for housing projects in such areas. The maximum dwelling limit is 30 units per acre.
5. Recent Laws in San Diego
While some laws have made buying a home in San Diego challenging, the overall picture is pretty good. The biggest thing to consider while purchasing a property in San Diego is how it will affect you and your potential tenants.
For example, the San Diego government has passed eviction rules that dictate how and when you can evict a tenant. Once they have been a tenant for 2 years, you can evict them only on the basis of the following:
- Non-payment of rent
- Illegal use of substances or materials
- Refusal to renew the lease or refusal to provide access
- Withdrawal from the rental market
- Major property construction
Conclusion
San Diego is one of the best cities to stay in and even rent out your property despite the hike in prices. So don’t wait anymore, and get in touch with a property attorney today!
