Silicon Valley and Seattle have served as the epicenters of tech since Jobs, Bezos, and Gates fundamentally altered the way we carry out our lives. And while San Diego has long been associated with a luxe, sun-drenched lifestyle, impeccable surfing conditions, outstanding colleges and universities, and a strong Naval presence, it is increasingly becoming one of the hottest spots for tech companies to set up shop.
The San Diego tech hub association and its effect on real estate are deserving of your attention, whether you’re entering the San Diego real estate market as a buyer, seller, or renter.
Read on for acclaimed realtor Celeste Dunn’s in-depth explanation of the esteem San Diego has earned in the tech sector and how it’s elevating the city’s overall desirability.
How did San Diego become a crucial part of the technology industry?
With its magnificent beaches and sublime weather aside, San Diego has long been famous as one of the top West Coast cities to pursue an education, and it is the city’s venerable institutions that helped drive its reputation as a center of activity for tech. The University of California, San Diego, has an outstanding science and technology program. Salk and Scripps Institute have been garnering international acclaim for their programs.
Private technology companies like Mogl are based in San Diego, while hundreds of startups are created in San Diego annually. Companies ranging from Qualcomm to Zovio call California’s second-biggest city home. Some experts go so far as to suggest that San Diego is becoming the next iteration of Silicon Valley or is at least beginning to rival it. This is thanks in part to the efforts of the San Diego Community Program, a coalition of entrepreneurs who joined forces in 2012 to expand the city’s tech scene and gain national and global recognition. This, it’s safe to say, they have accomplished.
While San Diego may not be Silicon Valley yet, the numbers are there to prove its growing status as a technology capital. In 2018 alone — nearly half a decade ago — startups in San Diego raised $907 million, and that was just in the third quarter of the year. In 2020, San Diego was ranked the ninth top city in the United States for tech jobs; that sector now accounts for 9% of San Diego’s employment. Tech titans ranging from Apple to Google have opened up spaces in California’s southernmost city. Companies such as TuSimple and Seismic are continuing to make incredible strides. And between 2020 and 2021, technology jobs in San Diego leaped by 4.2%.
How is the technology industry impacting the San Diego real estate market?
Commercial rentals for tech space have increased by 1.8%. In 2019, technology took up 19% of San Diego’s office leasing space.
But it isn’t just the business sector that has been affected: the median home price in San Diego has continued to escalate and is now at $845,586, representing a growth of 5.33%. Meanwhile, rental prices have continued to climb; the median price of a rental is now $3,260 per month, and in early 2022, rental prices in San Diego were shown to be among the fastest growing across the nation. Indeed, by the time we reached 2020, rental prices had leaped by 48% over the course of a decade.
Many people are moving out of San Francisco’s technology center and into more reasonable cities, including San Diego. Because while San Diego is watching its housing costs soar, it’s still substantially less pricey than San Francisco, which has seen rental prices grow by 165% since the days of the Great Recession. This, coupled with an increase in remote work and San Diego’s irresistible climate, splendid coastline, amazing dining scene, and thriving nightlife, has rendered it one of the most desirable regions on the West Coast — and its rising housing costs are evidence of this.
Does this mean I should hold off on searching for a home to purchase in San Diego?
Quite the opposite, in fact. A booming economy is one of the biggest indicators of a solid real estate market, and there is an increased demand for San Diego homes. San Diego’s rising status as a tech mecca may fuel this demand in the coming years. Whether you purchase an investment property and use it as a long-term rental or buy your next primary residence, you will be making a sound decision: home values in San Diego have appreciated 77.3% in the last decade, with an annual appreciation rate of 5.90%. Translation? San Diego is in the nation’s top 10% of appreciation.
Where are the best areas to buy a home in San Diego?
As the second largest city in the Golden State, San Diego is home to dozens of unique neighborhoods and districts. Several of its most alluring enclaves include La Jolla, Rancho Santa Fe, the Gaslamp Quarter, and Ocean Beach.
That said, each of these areas has its own distinct energy and personality. The wisest approach to discovering your San Diego dream home is to enlist the assistance of a seasoned San Diego real estate agent and spend a substantial amount of time in the regions that resonate the most with you.
Celeste Dunn is the realtor to have by your side as you explore San Diego’s loveliest gems. The award-winning real estate pro specializes in San Diego’s gorgeously-restored historic homes and brings her background in architecture to pair prospective buyers with properties that will bring them enduring pleasure.
Whether you’re interested in exploring luxury homes for sale in San Diego or would like to add your property to the list of Mission Hills condos for sale, she is the expert to partner with for all of your real estate needs and goals. Schedule a consultation with her today to discover the greatness of San Diego — for techies and anyone who savors an idyllic, enviable lifestyle.
