As a generation, millennials are legitimately complaining about their financial situation. Their student debt could be considered to be the highest of any other generation, with the exception of the one that followed them. Over the past few years, inflation has also outpaced wage increases. There are parts of San Diego that consider person as middle class even if he or she makes a six-figure income.
Is it possible for millennials to afford to purchase a house in San Diego, California, despite the steep odds against them?
2023 Real Estate Forecast
In San Diego, June of 2022 appeared to be the peak month for real estate values last year. However, compared to a few years ago, values remain extremely high even though they have decreased steadily each month since then. In the last few years, San Diego housing affordability has gone out of the window. For the next few months, real estate values in San Diego are likely to decrease based on the levels of interest rates. Affordability, however, remains extremely difficult for many homebuyers, especially hungry millennials.
The Best Places for Millennial Homebuyers to Look
For millennials who want to start at a lower price point, there are options outside of San Diego. It may be more affordable to purchase a home in a place like Oceanside than in other North County SD cities. Potential home buyers can also contact people in El Cajon to see if they wish to sell a house. First-time homebuyers can use this as a stepping stone to get their feet wet in the real estate market. Smaller towns like El Cajon, however, can be negatively impacted if the economy goes into recession later this year. The value of real estate could plummet as a result. Be cautious when purchasing a home and have multiple exit strategies at your disposal before making a decision.