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If you’re looking at San Diego real estate as an investment, the question isn’t “do homes go up here?” They usually do. The question is: did houses or condos perform better over the last 5 years?
The straight answer: in most San Diego neighborhoods, detached houses (single-family homes) have typically been the stronger long-term investment because buyers pay a premium for land, privacy, parking, and flexibility (expansion/ADU potential). Condos can be a smart move too—especially for lifestyle and affordability—but they usually lag on pure appreciation.
Why houses usually win
- Land scarcity: detached homes capture the land premium over time.
- Resale demand: broader buyer pool and fewer substitutes.
- Less HOA exposure: no dues increases, surprise assessments, or restrictive rules.
- Optionality: remodel, expand, add an ADU—more ways to force appreciation.
Why condos can still be a great buy
- Lower entry price: easier path to ownership and equity.
- Location leverage: coastal/urban areas where houses are out of reach.
- Convenience: “lock-and-leave” living for busy schedules or second homes.
Here’s the reality most buyers miss: when rates rise and affordability tightens, condos can feel the pressure first because the monthly payment includes HOA dues. The “right” condo still wins—strong reserves, sane HOA, high owner-occupancy, stable insurance, and no looming assessments.
Bottom line
If you can afford a house responsibly, it’s usually the stronger long-term investment in San Diego. If a house forces you into a bad payment or a bad location, buy the right condo and use it as your stepping stone.
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