Many of you may have put in offers to settle in San Diego and felt anxious after receiving the appraisal report.

As of May 2026, the median sale price in San Diego according to Redfin is about $954,000, while Zillow reports the average home value at approximately $1,007,800.

According to the California Association of Realtors, the median price for single-family homes in San Diego County is in the range of $1,000,000 to $1,050,000, suggesting that around $1,000,000 is a realistic median value based on various data.

Using this $1,000,000 as a basis, let's calculate using standard loan conditions (30-year fixed, 20% down payment, 6.75% interest rate). Excluding the 20% down payment of $200,000, the loan principal becomes $800,000. If repaid over 30 years at 6.75%, the estimated monthly principal and interest payment is about $5,189. Adding property taxes (approximately $1,042 per month) and insurance (about $150 per month), the total monthly housing cost comes to around $6,380.

This amount can certainly feel burdensome. Using the DTI 28% rule, the required monthly income is calculated to be about $22,787, which translates to an annual income of approximately $273,448. However, the median household income in San Diego is about $108,077, and for the entire San Diego County, it is around $106,300. The gap between the required income and the actual median income is about 2.5 times, which is somewhat less than LA (3.3 times) but still significant.

For reference, the HUD-released median income (AMI) for the San Diego area in 2026 is about $139,900 for a family of four, which is an adjusted figure used for housing assistance programs but also serves as a meaningful reference point for assessing income levels in the area.

Compared to nearby areas, San Diego has a similar burden to LA but is lower than Pasadena (required income of about $340,000) and nearly double that of Sacramento (around $134,600). The stable employment base from coastal access and military/biotech industries contributes to the price premium.

From the perspective of Korean households, if both partners are working, it is not common to have a combined annual income of $270,000, so increasing the down payment to over 30% or starting with condos or townhomes to gradually build assets seems more realistic.

If the down payment is increased to 30%, the loan principal decreases to $700,000, significantly lowering the monthly payment and income burden.

Based on decades of experience observing the Korean real estate market, San Diego is a region where many Korean families approach long-term, often for retirement or children's school districts, so I recommend planning for a 5-10 year horizon rather than focusing on short-term market fluctuations.