San Diego ranks third worst US city to find a starter home: report
According to a new report from Construction Coverage, an online publisher of construction industry research reports, San Diego, Chula Vista and Carlsbad ranked 52nd out of 54 large U.S. metros in its 2025 analysis of the best cities to find a starter home.
The report, which evaluates more than 300 U.S. metros and all 50 states, combines data from Zillow, Redfin, and the U.S. Census to assess where young buyers still have a shot at homeownership. Factors included the availability of smaller homes, affordability relative to income, and the current rate of homeownership among people under 35.
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Key findings for the San Diego, Chula Vista and Carlsbad metros:
Starter-sized homes dominate the market with 63.3% of homes having three or fewer bedrooms.
Affordability remains a major hurdle. The median sale price for a starter home in the area is $825,397, based on this report.
Monthly mortgage payments for these homes would consume approximately 66.2% of the median renter income—one of the highest rates in the country.
These area's, ranking of 52 out of 54 large metros, highlights the ongoing challenges for young and first-time buyers in the region.
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Nationally, the report shows a sharp decline in the construction of starter-sized homes. In the mid-1980s, one and two-bedroom homes made up about 24% of new single-family builds. By 2023, that number had dropped to just 5%, while four-bedroom homes surged to over 50%.
At the same time, housing prices have outpaced income growth dramatically. Since 2000, inflation-adjusted home prices have climbed by 56.5%, while median household income has increased by only 8.5%, according to researchers with Construction Coverage.
The full report, along data for all metros and states, is available at online: https://constructioncoverage.com/research/best-cities-to-find-a-starter-home
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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