With the rise in home prices, especially in San Diego, renters are having a more difficult time purchasing a home. 

We are currently in the least affordable housing market in decades (the late 1970’s had mortgage rates in the 10% to 16% range; we are not quite there luckily). Rents, home prices, and interest rates have all been rising. 

People in their late 20’s and 30’s are now on the outside looking in and getting more serious and creative about purchasing a property. 

Desperate times call for desperate measures as Hippocrates once stated. To squirrel away downpayment money, there are reports of buyers giving up restaurants and relying exclusively on cheap homemade meals, skipping concerts, baseball games and travel for at least a few years as well as delaying medical procedures. 

Also, this group typically has taken on additional income sources (“side hustles”) besides their primary job by driving Uber or Lyft on the weekends, delivering meals, performing gig jobs, blogging etc. 

I just spoke with an Uber driver recently who told me both he and his wife are currently driving on weekends and able to put away $3,000 a month toward their housing fund. I used a Task Rabbit contractor last month to repair some exterior wood on a rental property and he told me the same thing. He rents in El Cajon and does work on the app to help save up for a home. 

I have worked with dozens and dozens of first-time buyers over the years and I have extensive knowledge on various buyer programs that can help with a down payment. I regularly attend workshops offered by lenders to explain their programs. 

Last month I helped a couple in their 30’s purchase a small townhome in Chula Vista. It was a mild fixer, but a good value at less than $500,000. They were able to utilize a government program that contributed part of their downpayment and closing costs as a grant. In addition, we used a bank program that reduced the downpayment to just 3% (around $15,000). In the end, with the grant, they were able to close on the property for only about $8,000 cash. 

About five years ago I was working with a young man in his mid-20’s who wanted to get into real estate and we found a small condo near Kensington as a starter. He is now renting that and has moved to a home in Chula Vista. 

I tell my first-time buyers that it’s okay to start small. It’s how the system works actually. In a few years that appreciated property can be sold to trade up to a larger property or rented out as an excellent investment. There are nice starter properties in San Diego for $450,000 to $750,000. 

If you are a first-time buyer (or know one), give me a call to schedule a no obligation meet up to get the ball rolling towards property ownership. Also, I have a workshop scheduled for April 27 discussing first time home buying and the grant program my Chula Vista clients just utilized. 

Call or email me for more details about the workshop. 

MARKET REPORT: (Single Family): College Area (92115): median price for first quarter, 2024 was $991,000 with 26 homes sold in March. San Carlos (92119): median price was $1,132,500 in first quarter with 16 homes sold in March. Del Cerro/Allied Gardens (92120): median price up to $1,152,500 with 21 homes sold in March. Most homes enter escrow quickly when properly priced. There is very little inventory.

– Sarah Ward is a REALTOR with Fine & Coastal. Reach her at: [email protected].