San Diego Needs More Starter Homes

The Missing Step in San Diego Homeownership

California lawmakers just failed to pass legislation intended to make it easier for developers to build more condos and townhomes.

The bill was aimed at addressing a problem that gets surprisingly little attention. California builds plenty of apartments, but relatively few new condos. Supporters argued that the state's construction defect laws have made developers hesitant to build homes for individual ownership because of the potential litigation risk.

The bill ultimately ran out of time before the legislative session ended.

Why This Matters in San Diego

We talk constantly about needing more housing, but I think there is an important distinction between adding more places to live and adding more opportunities to own.

In San Diego, that distinction matters.

For many first time buyers, purchasing a detached house requires a substantial down payment, a larger monthly payment, and the responsibility of maintaining everything from the roof to the landscaping.

A condo can provide a much more approachable first step.

The purchase price is often considerably lower, less cash may be required upfront, and exterior maintenance is typically handled by the HOA. Most importantly, it gives buyers an opportunity to start building equity rather than waiting until they can afford their ideal house.

Your First Home Doesn't Have to Be Your Forever Home

I think this is something that gets overlooked.

A first home does not need to check every box. For some buyers, owning a condo for several years can provide the equity and financial foundation that eventually helps them move into a larger home.

Of course, buying the right condo matters. HOA finances, reserves, insurance, monthly dues, upcoming assessments and the condition of the overall community can be just as important as the unit itself.

California may have failed to pass this particular bill, but the underlying problem remains. If we want homeownership to remain attainable in San Diego, creating more entry points into the market should be part of the conversation.

If you have been wondering whether buying a condo could make more sense than continuing to rent, reach out. I am always happy to run the numbers with you.