Driving along the San Diego coastline, you will come across a stretch where mansions are tightly packed on the cliffs, known as La Jolla. Thanks to its location overlooking the Pacific Ocean, it has established itself as one of the most expensive residential areas in California, with median home prices exceeding $2.5 million.

La Jolla is also close to UC San Diego, making it a popular residence for high-income professionals in the medical and biotech industries. With Scripps Beach and several private yacht clubs nearby, it continues to attract wealthy retirees who enjoy water sports.

Rancho Santa Fe has a slightly different vibe than La Jolla. The core area, commonly referred to as 'The Covenant,' has regulations that limit minimum lot sizes to over two acres, resulting in many ranch-style estates, with median prices rising to between $3.5 million and $4 million. The history of many famous athletes and celebrities residing here also contributes to the area's premium.

Del Mar and Coronado are also frequently mentioned in this context. Del Mar is a small community with a racetrack and beach, with median prices around $2.8 million, while Coronado, characterized by its island geography and historical significance symbolized by the Hotel del Coronado, has property values ranging from $2.5 million to $3 million.

The background for these areas becoming affluent neighborhoods is largely due to their geographical scarcity. The coastline itself is a limited resource, and with development regulations effectively blocking new supply, there is a significant gap compared to the overall median price of $900,000 in San Diego.

Among Korean investors and professional households, areas like Carmel Valley and Torrey Pines are relatively more sought after than La Jolla and Rancho Santa Fe. The excellent public school districts and relatively moderate price increases are often cited as reasons, and it is not uncommon for families to move back to La Jolla after their children have completed their education.

Given the high entry barriers of San Diego's coastal affluent areas, many approach them from a long-term asset allocation perspective rather than for actual residence. It is advisable to consider alternative areas like Carmel Valley while taking into account school districts, commuting distances, and budget.