When exploring multifamily real estate investment opportunities in San Diego, an investor needs to identify what it is they are looking for and where they are in their investment career. If you are a new investor, you may want to start in a location that us brokers like to call the “C Class” area. C Class will be the highest cash-flowing zip code. Those who have experience and capital to work with often graduate to real estate investing in the B Class area, which consists of a higher income earning tenant pool and a higher demand rental area, which equates to higher prices and less cash flow for the same capital compared to C class areas. Those who are experienced investors or those with significant capital typically graduate to the A class areas, where they can preserve their capital through guaranteed appreciation. This area has the least amount of cash flow compared to taking the same amount of money to another zip code, but the highest rate of appreciation.
Below is an outline of the zip codes in San Diego and their basic category. Some of the zip codes have overlapping classes due to the area gentrifying or that the zip code spans geographically over different classes, such as the 92102 zip code. Golden Hill, for instance, would be considered B+/A-, whereas Sherman Heights is a gentrifying B- class, and Chollas View would be considered your typical C class.
To get a sense for pricing in the various zip codes, listed below are the average sales price in each zip code for detached single family homes from 2020-2021, broken down into their various “classes:” Understanding these classes and where they fit in with your real estate investing journey is an important first step to making your next move.
“C Class” – Typically Eastern suburbs of San Diego County as well as within close proximity to Southern Downtown San Diego:
$615K – San Ysidro (92173)
$645K – City Heights (92105)
$593K – National City (91950)
$633K – Logan Heights and Barrio Logan (92113)
$684K – Spring Valley (91977)
$635K – Grant Hill (92102)
$643K – Lemon Grove (91945)
$793K – College and Rolando (92115)
$875K – Vista (92084)
$844K – Lakeside (92040)
$705K – El Cajon (92021)
$754K – Escondido (92027)
$810K – Chula Vista (91910+1)
“B Class” – Typically located in Central San Diego:
$824K – La Mesa (91941+2)
$905K – Imperial Beach (91932)
$915K – Golden Hill (92102)
$998K – Oceanside (92054)
$1.04M – Escondido (92025)
$1.019M – Clairemont (92117)
$1.076M – North Park (92104)
$1.197M – Normal Heights + Kensington (92116)
$1.075M – South Park (92102)
“A Class” – Typically Beach Suburbs and Central Core San Diego:
$1.449K – Downtown + Bankers Hill (92101)
$1.659M – Carlsbad (92008)
$1.88M – Ocean Beach (92107)
$1.88M – Pacific Beach (92109)
$1.988M – Point Loma (92106)
$2.014M – Mission Hills/Hillcrest/ University Heights (92103)
$2.41M – Encinitas (92024)
$3.249M – La Jolla (92037)
$2.991M – Solana Beach (92075)
$3.108M – Coronado (92118)
$3.686M – Del Mar (92014)
Although the above list depicts the average price of single family homes, this is a good indicator of where each suburb stacks up amongst the rest. If you are looking to invest in San Diego to preserve your capital for your legacy, you can depend on the suburbs listed in the A Class. If you are looking to grow your capital and are already a seasoned investor, those in the B Class will be most suitable. If you are looking to accelerate your investment career and go for quicker cash flow, suburbs in the C class list will be the best place to start.
All in all, San Diego is a secure place to accomplish long term wealth and success through multifamily real estate investing. With the top 26% of the community having the ability to afford a home in San Diego (as of 2020), that leaves the remaining 74% renting, which makes for an excellent rental market. For more information contact Christina.
Written by: Christina Labowicz, Apartment Advisor with ACI Apartments | (858) 876-5701 | Christina.ACIApartments@gmail.com | Book a call: calendly.com/christina-aciapartments
