Recently, it has become increasingly common in San Diego to see couples approaching retirement or those whose children have all moved out downsizing from a four-bedroom single-family home to a more manageable condo or townhome. This trend, known as downsizing, is not just a fad but a real movement driven by price and lifestyle changes.

According to Redfin, as of June 2026, the median sale price for all housing types in San Diego is $984,464, while the three-month average median price for San Diego County is around $952,000, reflecting a 3.9% increase from a year ago. At first glance, these numbers suggest a still-hot market, but when broken down by housing type, the picture changes significantly.

The median price for single-family homes is around $1,074,000, while the median listing price for condos remains at about $630,000. This means there is a gap of over $400,000 between the two types, which is precisely why couples choosing to downsize and young households looking to buy their first home are being drawn toward condos and townhomes. Townhomes, which have their own land but have exterior walls and roofs managed by an HOA, are particularly appealing to retirees tired of yard maintenance.

Single-family homes require owners to manage everything from the yard to the roof and plumbing, which can become burdensome as one ages. In contrast, condos have their exterior and common areas managed by a homeowners association (HOA), but the monthly fees tend to be relatively high. Townhomes often share walls but typically come with small yards in the front and back, making them a popular compromise. Among Korean families, there is a clear trend of new townhome developments in areas like Carmel Mesa and Mira Mesa, which, while not within the budget for single-family homes, provide options for families who do not want to give up having a yard.

For investors looking at rental income, it is also important to consider the rental turnover rates for condos and townhomes. Condos near college campuses or downtown have steady rental demand, but the monthly HOA fees can eat into net profits. Townhomes, while generally having lower management costs, tend to have fewer listings than condos, leading to more competitive buying conditions. However, it is essential to note that market prices cannot be assumed to always rise, so it is wise to consider vacancy risks and fluctuations in management fees.

For families newly immigrating from Korea and preparing to settle, it may be worth considering starting with a condo or townhome rather than jumping straight into a single-family home. This phased approach allows them to save up for a single-family home later. Even if starting with a rental, understanding local school districts and commuting conditions can make future purchasing decisions much easier.

Nationally, the share of new housing supply represented by townhomes has been increasing in recent years, as they can be offered at lower prices while using land more efficiently. In coastal cities like San Diego, where developable land is limited, this trend is even more pronounced, with many new projects recently being designed as townhomes.

For families relocating from other states, it is advisable to keep in mind that California's property tax system is based on the purchase price and that both condos and townhomes incur separate monthly HOA fees. Even if the monthly expenses are similar, the maintenance costs for single-family homes and the HOA fees for condos differ in nature, so it is essential to compare total ownership costs.

Ultimately, determining which of the three housing types is right for you in San Diego depends not only on your budget but also on your stage of life. Families prioritizing school districts may prefer single-family homes or townhomes, while retirees looking to reduce maintenance burdens should consider condos. Since market prices and HOA conditions can vary significantly by neighborhood, and school district boundaries frequently change, it is advisable to verify the specific address before making a purchase. This article does not constitute investment or legal advice, and it is recommended to consult with a professional before finalizing any contracts.