Inventory growth holds the key to unlocking the San Diego housing market.
Homebuyers in San Diego have been feeling the pinch of high home prices for quite some time now, and two key charts really spotlight the situation.
The housing market is currently in a bit of a tough spot. Home sales hit a 31-year low last year and have only made a slight recovery since then. With home prices and mortgage rates still riding high, it’s no wonder many potential buyers are finding themselves priced out.
A senior economist at First American, pointed out, the biggest factor to watch in 2026 is inventory. If we can see some improvement in inventory levels, it could help keep house price growth stable and encourage more sales activity than what we’ve seen in recent years.
So, what’s causing such sluggish inventory growth in San Diego right now? Here are two interesting trends to consider:
1. **Homeowners Are Staying Put Longer**
According to property-data provider Attom, San Diego homeowners are holding onto their homes longer than ever. In the fourth quarter of 2025, the average length of time homeowners kept their properties before selling rose to 15 years, which is up from 7.4 the year before. This trend is particularly pronounced in pricier coastal areas. For example, the average homeowner in California stayed in their home for 11.24 years, while the national average, it was 11.8 years.
Many homeowners are hesitant to sell, especially because they don’t want to lose those low mortgage rates from the pandemic. Plus, with tight inventory and high prices, upgrading or relocating has become quite tricky. Unfortunately, as San Diego homeowners linger in their homes, it means fewer listings available for buyers, which keeps inventory low and can push prices up. For context, the average home value in California was around $909,400, while in San Diego it was about $1,075,000. The national average? About $426,800.
2. **More Homes Are Being Passed Down**
When homeowners do decide to sell, an increasing number are opting to pass their homes on to their heirs instead. In fact, a record 340,000 homes were transferred through inheritance across America in the year ending August 2025, as found by property-data company Cotality. This means that 7% of property transfers were family hand-me-downs, marking the highest recorded share since tracking began.
In a nutshell, these trends highlight just how challenging the housing market is for buyers right now, particularly in states known for their high prices, like California.
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