For generations, buying a condo was considered the first step toward homeownership.
It was the "starter home."
A place to build equity before moving into a larger detached house.
The latest San Diego housing report suggests that this traditional path is becoming much more complicated.
It's Not Just About Price
At first glance, condos still appear to be a bargain.
The median detached home in San Diego is now just over $1 million, while the median attached home sits around $630,000.
That's a significant difference.
But purchase price is only one piece of affordability.
Today's condo buyers also need to consider:
- HOA dues
- Insurance costs
- Reserve funding
- Potential special assessments
- Financing requirements
- Mortgage rates
Those costs have changed dramatically over the past several years.
Why Condos Are Taking Longer to Sell
The latest housing data shows a striking difference between detached and attached housing.
Detached homes currently have an expected market time of 96 days.
Condos and townhomes take 122 days.
That's nearly an additional month.
When homes stay on the market longer, buyers gain negotiating power.
That's exactly what's happening in the condo market today.
A Tale of Two Markets
One of the most interesting findings in this month's report is that home values are no longer moving together.
Since July 2024:
- Attached home values have declined approximately 6.8%
- Detached home values have declined approximately 2.2%
Instead of talking about "the San Diego market," we increasingly have to talk about multiple San Diego markets.
Detached homes remain relatively resilient.
Condos are facing different economic pressures.
New Financing Rules Matter
Beginning this month, lenders are required to take a much deeper look at condominium associations before approving many conventional loans.
That means buyers may encounter:
- Longer escrow timelines
- Additional HOA documentation
- Greater scrutiny of reserve accounts
- Increased attention to insurance coverage and deferred maintenance
For buyers, choosing the right condo is no longer just about location and floor plan.
It's also about the financial health of the HOA.
Does This Mean You Should Avoid Condos?
Not at all.
In fact, this could create opportunities.
Markets that become more challenging often reward buyers who do their homework.
A well-managed HOA with healthy reserves may become even more valuable because financing is easier and buyers have greater confidence.
On the other hand, poorly managed communities may continue to struggle.
My Take
The biggest lesson from this month's report isn't that condos are "bad."
It's that the definition of affordability has changed.
The cheapest purchase price doesn't always produce the lowest monthly cost or the strongest long-term investment.
As buyers, we need to stop asking:
"What's the cheapest home I can buy?"
And start asking:
"Which home puts me in the strongest financial position five years from now?"
That shift in thinking may be the most important real estate lesson of 2026.
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