Why Renting Beats Buying a Home in San Diego in 2024

[@drewrowe]

I pay $1350 for a 1 bed 1bath with a parking spot in Clairemont . Been here 3yrs. The house next to my rental sold for 900k. There is a remodeled house down the block listed for 1.5million. I can’t afford to buy in my neighborhood smh

[@randomutubr222]

I rent in Clairemont as well and we are getting ready to buy soon. The issue is that Clairemont is basically the last place in San Diego “proper” that is primarily single family homes that are even relatively affordable (and I’m not suggesting that $1m+ is “affordable”, but for decent dual income/no kids like me and my wife, we are right on the edge of being able to afford it. Put $1m as your top dollar in Zillow and there’s nothing else that even come up until you get up to Oceanside. There are some more affordable places in the areas around North Park and whatnot but that isn’t exactly the “quiet single family neighborhood” that a lot of people like myself are looking for) But I hear ya. I’ve been renting in Clairemont for 10 years and only now can we actually really consider buying a property here. I honestly wish I had just put 5% down for a house I couldn’t afford five years ago when they were still only around 700k lol

[@amesasw]

In your opinion are rental rates more contrained by income than purchase prices.

[@vdsilva6806]

Up north in Sunnyvale, a standard suburban home sold for $730k over the asking price where they seller got 23 strong offers. I believe this shows that homes are going to be bought by affluent people who basically are successful entrepreneurs… making it very difficult for any regular middle class citizen from getting out of the rental market.

[@DanPBestLifeSD]

Yes this goes back to the housing inventory shortage. Prices are getting out of control because there are so few homes available, it's a minority of affluent people that can afford it.

[@vdsilva6806]

Watched Valuetainment. He says that if you stay in this state, you should get into politics and find ways to make money. I agree. A good topic in the future? It might help your followers think and become your future clients.

[@robertwilliam9558]

Sunnyvale/Santa Clara is very nice, but so Expensive.

[@debbiekaten3803]

Great analogy!! Thank you!

[@DanPBestLifeSD]

Glad it was helpful!

[@lg1955]

Hi Dan thank you for the time you take to make these informative videos! One question did you make a video on San Marcos? Want to move to San Diego and was seeing that it’s a great place or it’s up and coming not sure. Your advice is greatly appreciated!

[@DanPBestLifeSD]

San Marcos is great! I haven't made a video on San Marcos as a whole, but I did talk about San Elijo Hills in my hidden gems video. I'll add it to my list to make a video of San Marcos. In the meantime feel free to reach out with specific questions at [e-mail]

[@homeycheese1]

Nice video, renting is much cheaper right now so I'm on sidelines waiting but my issue is that 92117 appreciated 15% yoy, it's killing me watching this

[@mickaleneduczech8373]

And as a tenant you're not paying maintenance, property tax, and property insurance, if you can find it. The property tax and Prop 13 in particular are a real issue. We long time homeowners pay very low taxes, but we still want the services, so the costs get passed on to new homeowners, and I don't know how on earth they afford it. But you can't simply get rid of Prop 13 without wiping out long time homeowners. Last year 1/6 of the ownership of my house changed hands, causing that 1/6 to get reassessed, and tripled the property tax.

[@DanPBestLifeSD]

Valid points on the maintenance. This video surely could have gone on another 10-20 minutes to break down all the financial considerations of buying vs renting. But I thought it was still a message worth saying. Obviously as my wife and I just purchased a home in the last few months, I think the value of owning a home is there, but for some people either looking to live somewhere only a few years, or really needing to keep monthly expenses down, it might not be the right idea in this market.

[@lostconciousness4255]

lmao, tenants do pay for all this through the rent as one fee that covers all and the ever elusive security deposit. Do landlords actually think the general public believe this nonsense?

[@matthewphillips5483]

@@lostconciousness4255 This is a myth. Rent is determined by the market; not the individual expenses of the landlord. Consider a new investor that spends $1.3 mil on a property like shown in the video. He/she is competing with investors who purchased their rental property 30 years ago for peanuts and can undercut you because their expenses are far lower. Would a renter pick the lower rent or the higher rent? You already know the answer to this.

[@barbarac41]

whatever you buy, you pay three times it's value through taxes, interest rates, insurance etc.

[@chrisaycock5965]

It's so odd that San Diego is nearly the same price as SF bay now where I live yet salaries are VASTLY different. I'm assuming people from SF carrying SF salaries into San Diego.

[@CNote415]

Also people from LA as well. Huge influx of people from both areas.

[@chrisaycock5965]

@@CNote415 I used to live in OC so I know what you mean prices have gone up but salaries have barely budged in relation to the price of everything it’s why I moved from oc to sf my rent was going up 800 dollars

[@DanPBestLifeSD]

Yes we have a lot of relocations from SF for sure. Apple alone is bringing 5k employees to SD in the next 2 years, and just a reminder we only currently have 2,500 homes for sale in the entire county. However, don't forget a lot of people purchasing a home today are bringing equity from another home to lower that financial burden.

[@chrisaycock5965]

@@DanPBestLifeSD California really needs to address statewide housing policy more efficiently I know they’re pushing for these huge housing element numbers but I’m curious to see if they’re going to let cities drag their feet on actually getting these proposed units built. San Francisco’s sunset district is already trying to stall.

[@DanPBestLifeSD]

Yes I think part of it is the more policy they put in place, the more difficult and expensive it becomes to build. Add on top of that every single multi-unit single family housing project planned in SD has a lawsuit filed against it. It's a very difficult place to build. I am all for policy that makes the process easier for developers.

[@amesasw]

I feel like their are only 2 types of people buying these homes. Families or people with incomes over $500k gross, which is like 1/20 households or people with lots of equity who bought homes at least 10+ years ago. But epsecially in the case of higher income people. This has to feel awful, since I have to imagine many of these people were getting homes in nicer neighborhoods and are now having to step down to more suburban neighborhoods even having uncommonly high incomes. Pretty much everyone living in our current neighborhood with young families makes under $300k a year. Which means non of us could afford a home in our area that averages 1.4 million... if this keeps up for too many years there will be a major demogrpahic shift in these neighborhoods.

[@rodgerbright3764]

Wow, this is some flood logic in my mind. Because the rent you are paying is 100% post tax earnings. The mortgage you are paying, specifically the interest and the property tax are “pretax” earnings. So it is not $2500 more at all. You have to do the math. Because you do not need to pay income tax on a huge portion of your mortgage. so I will admit that with our really crappy interest rates now this is not the case, but at a certain point, it actually cost you less money to buy a house than rent a house even though the monthly amount you pay more. Because YOU GET YOU NOT OAY INCOKE TAX ON THE VAST MAJORITY OF YOUR MORTGAGE. Not to mention the fact that the biggest problem with California real estate is that if you wait you probably can’t afford it. So while you think you are saving money by putting away an extra $2500 per month the value of that house is increasing perhaps hundreds of thousands of dollars every year.I will say that that’s maybe a little aggressive, but I have owned houses and then sold them and then they literally gained $1.5 million over 18 years of value.

[@anikdasdigital]

Your videos are amazing. I really like it. I am a new subscriber to your channel. Can I talk with you Dan?

[@DanPBestLifeSD]

Thanks so much! Yes, feel free to reach out if you are looking to buy or sell a home in San Diego County

[@rebarguy4051]

Bcuying or saling is not worth iit in san diego simple as that ...unless u ritch ....

[@alistershirazi]

Dig the content 💪 I’m in San Diego and would love to do a podcast with you. I have 141k on TikTok and would love to collab!

[@marklawrence909]

This makes sense if you are above a certain age, maybe in your mid 50's. BUT, when prices crash, and it's definitely coming, you will be able to afford decent properties again. I am in the UK and would LOVE to live in San Diego, just the climate alone beats the horrible UK weather, and in my mid 50's, but would wait out for the crash before deciding on anything. Anyone who believes this crazy greed festival can be sustained is out of touch with reality.

[@DanPBestLifeSD]

Thanks for sharing your viewpoint from the UK! While many speculate about market crashes, I can say with confidence that what we're seeing in San Diego is primarily driven by long-term low supply.

[@marklawrence909]

@@DanPBestLifeSD I'm not surprised so many people want to live there, it is such a nice place, best city in the USA.

[@randomutubr222]

What do you consider a “crash”? The SD market is cooling down and we are seeing price cuts from Covid highs, but I don’t foresee a “crash” coming. This is too desirable an area (demand) with too little supply. You said it yourself, you don’t even live in the US and you want to move here to SD. People are always going to want in SD. It’s one of the most desirable places in the US, if not the planet. And there is decent industry here and there will always be more people with more more money than you who want to live here. Result: prices will continue to be high.

[@marklawrence909]

@@randomutubr222 A crash in the UK, it's now happening, prices are falling faster than the pants off a $2 whore. SD is highly desirable so likely will stay safe, for now. That's what I mean, waiting to see the outcome in the UK before trying to get to SD.

[@lostconciousness4255]

@@randomutubr222 yes, desirable to rich investors, rental companies, landlords and short-term renters as they strangle the market for profit.

[@Alisharif-z5p]

Adimanav Siasat P 300 Inr =1$

[@Samraheem]

I mean, I like it do I be with our own way that I bother you with something if I go or wrong way I don’t think so so leave me alone please

[@lawrencecarter5522]

Is otay Mesa west san Diego Good place to live

[@User_92020]

😆 otay is NOT West San Diego 😆 Otay does have a lot of nice house for sure. OTAY is mostly a middle class neighborhood where you can raise a family. There are better areas though. Otay is mostly peaceful NOW. Believe it or not , OTAY is a hood surrounded by other hoods like San Ysidro which is West of Otay. OTAY's main rival would be Chula Vista mostly stabbings and shootings. Other hoods around that area are Imperial Beach Nestor West side locos FH ( from hell) Del Sol Palm City And obviously, Chula Vista gang which are VCV ( Vario Chula Vista) GLS. ( Grande Locos) SBL ( South Bay Locos)

[@User_92020]

Too be honest, if you're not looking for trouble, you should be fine. The way you look, the way you dress and the way you walk are all factors whether or not you'll find trouble. The fastest way to find trouble is to shave your head get tattoos on your head and walk around like your looking foe trouble and you'll find one real quick. If you're a white dude that just want to ride motorcycle or motto cross you're good .

[@ApoloniaCastro-qw2gl]

Yes it is, pretty quite neighborhood just a little far from downtown so you better have a hybrid job or near otay

[@lawrencecarter5522]

Is it the same as Escondido ca

[@hudsonjamesc]

If you live in sd and want to buy a house do it out of state then sell it and buy here in sd. I live in chula vista.

[@DanPBestLifeSD]

Build up some equity to put into a new home. The same can be said for starting with something more modest (condo or townhome)