When opening the list of properties along the Pacific coast in San Diego, the numbers $800,000 and $900,000 catch the eye.

However, looking at the Census data, the median household income in San Diego is $95,000, which is about 21% higher than the national average of $78,538.

So why does the burden of home prices feel so heavy despite the high income?

To understand the answer, we first need to look at the employment structure in San Diego. San Diego is home to the largest naval base in the United States.

Naval Base San Diego, Naval Air Station Coronado, and Marine Corps Base Camp Pendleton are located nearby, and military households play a significant role in the local income structure. For military personnel, the inclusion of basic pay along with housing allowance (BAH) and subsistence allowance (BAS) tends to result in a significantly higher effective income.

How the income of military families, which is calculated differently from civilian households, is reflected in the median income is not straightforward.

Another key industry in San Diego is defense and high technology. Companies like General Atomics, Northrop Grumman, and L3 Harris have established roots in San Diego, and engineers and technical workers at these firms often earn salaries exceeding $100,000.

Additionally, Qualcomm, Illumina, and the rapidly growing biotech cluster continuously supply high-income technical personnel. These two industries are the driving forces behind the median income of $95,000.

So what about home prices? The median price for single-family homes in San Diego ranges from $850,000 to $1,000,000. Coastal luxury areas like La Jolla, Del Mar, and Solana Beach can exceed $1.5 million to $3 million. In contrast, inland areas like Chula Vista, El Cajon, and Santee can find listings in the range of $620,000 to $750,000.

Buying an $850,000 home with a $95,000 household income means a ratio of 9 times income. This figure clearly indicates that the number is high. Realistically, a combined income of over $150,000 or significant down payment assets are needed to enter the market for homes at the median price in San Diego.

The rental market is also challenging. The average monthly rent for a one-bedroom in San Diego is between $2,300 and $2,800, while two-bedrooms range from $2,800 to $3,500. Preferred areas like Mission Valley, Hillcrest, and North Park are even higher.

For military families, the housing allowance (BAH) is set quite high to reflect the cost of living in San Diego, which can give them an advantage over civilian renters in the rental market. Those who have experienced the stress of searching for rentals near good school districts can relate.

Looking at the long-term trends in the San Diego real estate market, supply constraints are a key structure supporting prices. The Pacific Ocean, military bases, the Mexican border, and Cleveland National Forest surround the city, creating physical limits to urban expansion.

Additionally, the conservative tendencies of the city council regarding coastal development for decades have likely led to a situation where new housing supply cannot keep up with demand. This factor seems to support the long-term downward pressure on asset values in San Diego.

$95,000 income, home prices over $850,000. This gap between the two numbers represents the reality faced by the middle class in San Diego. Having a higher income compared to the national average does not make it easier to purchase a home in this city.

Nevertheless, the reasons why Koreans choose San Diego likely stem from a combination of climate, job opportunities, quality of life, and expectations of long-term stability in real estate prices.