Most San Diego homes lost value this year
Add Axios as your preferred source to
see more of our stories on Google.
Nearly four out of five San Diego homes lost value in the past year, a significantly higher share than the national average, according to Zillow.
Why it matters: The drop could offer some relief to struggling homebuyers, even as home prices and mortgage rates remain high.
By the numbers: About 78% of homes in the San Diego metro area were worth less in October than they were a year earlier, according to Zillow's analysis.
- That's compared with 53% of homes nationally — the most since 2012.
- Typical home values hovered around $970,000 in San Diego last month, a 4% decrease over the past year, per Zillow. They were valued at just over $910,000 countywide, down 2.5%.
The intrigue: Carlsbad home values shot up 5.4% this year, averaging about $1.4 million in November, and the coastal North County city saw record highs in 2025.
Reality check: Despite the overall value slide of the past year, the median San Diego home had jumped about 88% in value since the property was last sold, per Zillow's data.
- That's one of the highest among major metros.
- Just 4% lost value in that time, which is around 11 years for typical homeowners in San Diego, where people tend to stay in their homes longer than average.
Between the lines: There's also difference between taking a loss and being "underwater," or owing more money to your lender than the house is worth.
- Far fewer homes are underwater today compared with in 2019, Zillow chief economist Mischa Fisher says.
Yes, but: More homeowners in San Diego are underwater or facing "negative equity" due to steep price cuts and low down payments, Times of San Diego reports.
The bottom line: "While fluctuations in home values can distress watchful owners, the vast majority are sitting on large equity gains that they can take advantage of when they sell," Fisher tells Axios.