‘Out of control’ San Diego surpasses San Fran as least affordable US city

Real Estate

Sun-soaked San Diego is home to the least affordable metro housing market in America.

The city surpassed its northern California neighbor, the notoriously pricey San Francisco, earlier this year, according to a report by real-estate analytics company OJO Labs.

“Pricing is out of control,” Kathy McSherry, a Compass real estate agent in San Diego, told The Post Saturday, a day after she sold a 1,400-square-foot home for $1 million, a property originally listed at $900,000. She currently has a $1.65 million offer pending on a $1.4 million listing for a 1,500-square-foot property.

“We’re getting multiple offers on everything,” McSherry said, including more than 20 bids on a one-bedroom condo in central San Diego.

OJO’s affordability metric compares median home prices to local incomes. The median home sold price in San Diego climbed 14.3 percent in January, to $764,000, bringing the city’s “unaffordability” score to 8.1 — the ratio of home-sold price to median household income, OJO reports.

A panoramic view from above San Francisco's financial district.
Average home prices are still higher in San Francisco, but due to median household incomes, San Diego is considered less affordable.
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Median home prices remain higher in San Francisco than San Diego, but homes there are considered more affordable because of higher average incomes.

Home prices declined 4.2% in San Francisco over the past year, the steepest drop of any of the 50 metro markets measured by OJO Labs. The only other area in the red was Fort Myers, Fla., where home prices declined 0.2%.

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