House Rich, Move Poor: Why San Diego Homeowners Feel Stuck

San Diego homeowners have never been wealthier on paper, and they've never felt more trapped.

Buyers have some leverage back, so why does the market still feel so broken? Our answer: it's not the price. It's the payment.

The numbers: not a crash, a compression

Here's what Compass's San Diego Housing Market Update showed for July 2026:

	Detached homes	Condos and townhomes
Median price	$1.15M (up 4.6% from a year earlier)	$659K (up 1.4% from a year earlier)
Days on market	33	43

Detached inventory was also down 24.7% from a year earlier, and detached homes sold for 98.6% of list price.

By our October episode, the county numbers we discussed showed pending sales down 12%, closed sales down 17.1%, inventory down 10% and the median price up 7.1%. See the full breakdown in our October market update.

That's not a boom or a bust. It's more like an old western standoff: demand is cooling, but there's no flood of inventory because many owners aren't selling.

There's also no single "San Diego market." Detached homes and condos are behaving differently, and condos and townhomes are feeling extra pressure from HOA costs.

What "house rich, move poor" means

Say you bought years ago and locked in a mortgage rate around 3%. You may have plenty of equity, but your next home could come with a higher price and a much higher rate. When we recorded the October episode, rates were in the sevens. Your equity looks great until you see what it costs to replace your current home and payment.

That's the replacement-cost problem behind the rate lock-in. Staying can feel like the only option, even when your home no longer fits your life.

Options for moving up

There's no single right answer, but these are worth running through with real numbers:

Use your equity as your next down payment

A larger down payment reduces the loan you need, which can bring the new payment closer to something you can live with.

Keep and buy vs. sell and buy

If your current home could rent for enough to cover its payment, keeping it may let you hold on to that low-rate mortgage and build another asset. It also makes you a landlord, with the risks and costs that come with that. We go deeper in Keep and Buy vs. Sell and Buy.

Bridge loans, HELOCs and refinances

These can help you access equity for a move, sometimes before your current home sells. Each has its own costs, qualifying rules and risks, so compare them before you commit.

Count the full monthly payment

When you compare a move, include everything, not only principal and interest:

• Homeowners insurance, including California FAIR Plan coverage if you need it
• Property taxes
• HOA dues and possible increases
• Maintenance and the other costs people forget

The bottom line

Feeling stuck doesn't always mean you are. Sometimes the math supports a move. Sometimes it shows that staying is the smart choice. Either way, you should decide from your real numbers, not from the size of your Zillow estimate.

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Wondering whether you can afford to move up? Talk to our team and we'll compare your options side by side.

Watch the full episode on YouTube. Market figures: Compass San Diego Housing Market Update, July 2026, as cited in our Market + Money episode; October figures as discussed in our October episode.

Disclaimer: Educational purposes only. The GreenHouse Group Inc. (CA DRE #01859042 | NMLS #366847). We are real estate and mortgage professionals, not CPAs, tax advisors or attorneys. This content is not individualized real estate, financial, tax, legal or lending advice. Market data is based on the cited source and date and may change. Loan programs, rates and terms depend on eligibility and availability. Using home equity puts your home at risk as collateral, and renting out a property carries financial and legal responsibilities. Consult qualified professionals about your situation.