Home shoppers could get a better deal buying new than used around San Diego, according to a recent Zillow report.

Why it matters: People typically pay a premium for brand-new houses, but in San Diego, location is king and existing homes are on the most desirable land.

By the numbers: New homes in San Diego County are selling for $552 per square foot, compared to $609 for existing homes, per the report.

• That $57 discount is the largest among major U.S. metros.
• Land value is the biggest factor contributing to that difference, according to local real estate analyst Gary London.

Between the lines: Existing homes tend to be closer to the high-cost, highly-desired coastal areas, whereas new homes tend to be built further east and south.

• A new, 3,000-foot home in La Jolla would be worth three times more than the same new house built in El Cajon, London said.
• Coastal communities are mostly built up already, so new homes are less common there. The exceptions: some infill development with townhomes and higher-density housing, or homes that are torn down and rebuilt.
• Most new builds are in more affordable places like Chula Vista, Otay, or inland Oceanside and San Marcos, he said.

Reality check: There's not a lot of new housing being built at all around San Diego, according to London.

• The city issued more permits last year than it has in decades, but it's still not enough to keep up with demand.
• Low inventory is keeping prices high.

Zoom out: Home buyers are seeing these discounts in 21 major U.S. metros, led by San Diego, Salt Lake City and Los Angeles, per Zillow.

The big picture: With elevated interest rates hammering housing affordability, many builders are shrinking homes to cut costs or offering incentives, including lower rates on mortgages, Axios' Sami Sparber reports.

• The average 30-year fixed mortgage rate has fallen lately, reaching 6.47% last week, according to Freddie Mac.

The bottom line: In San Diego, "new builds are in inland areas and existing homes' resale reflect the fact that they're better locations closer to the coast," London said.

Share this story

Elections in California aren't just when we choose our leaders. They're also one-day legislative sessions, when voters determine some of the state's biggest policy decisions.

Why it matters: Voters are facing 10 big questions that could redirect the state's approach on issues like crime and criminal justice, school funding, rent control and climate spending.

Here's a brief rundown on the ballot measures coming your way:

📚 Proposition 2: Allows the state to borrow $10 billion to fix and build school facilities, with $8.5 billion headed to K-12 schools and $1.5 billion to community colleges.

🏳️‍🌈 Proposition 3: Amends the California Constitution to remove language that still says a marriage can only be between a man and a woman.

🌎 Proposition 4: Allows the state to borrow $10 billion for climate spending, including $3.8 billion for water projects, $1.5 billion for wildfire prevention, $1.2 billion to mitigate sea-level rise and $1.2 billion for land conservation.

🗳️Proposition 5: Lowers the voter approval threshold needed for local housing and infrastructure bond measures from two-thirds to 55%.

🚫 Proposition 6: Amends the state constitution to ban involuntary servitude as punishment for a crime, and disallow state prisons from disciplining inmates who refuse to work. Prisons can still give time credits in exchange for work.

5 more propositions

⚓ The commander of a Navy warship protecting a San Diego-based aircraft carrier was relieved of duty four months after appearing in a photo shooting a rifle with its scope mounted backward. (NBC 7)

🐶 The San Diego Humane Society is waiving adoption fees Saturday for its "Clear the Shelters" Day, as it continues to cope with overcrowding. (Fox 5)

Fernando Tatis, Jr. returned to the Padres Monday after two months on the injured list, just in time for the stretch run.

Why it matters: Before his injury, Tatis, aka Bebo aka El Niño, was not playing at quite the superstar level of his first three years in the league, but he nonetheless fortifies a Padres roster with eyes on October run.

What's next: San Diego play the Detroit Tigers at Petco Park tonight at 6:40pm as part of a homestand that runs through the weekend.

• Yu Darvish is returning to the mound for the first time since May 29.