Millennials now make up more than half of mortgage inquiries in San Diego, but record home prices and steep down payments keep ownership out of reach for many.
Millennials drive new loans
In 2024, buyers aged 28 to 43 accounted for 51.6 percent of all mortgage purchase inquiries in the San Diego metropolitan area, according to LendingTree data. That’s higher than the national average of 49.7 percent and places San Diego among the top 15 U.S. metros for millennial home-loan activity. The average age of these borrowers was 35, seeking loans of about $625,000 with annual incomes near $121,000.
Prices climb faster than paychecks
The median down payment for a home in the area reached $169,000 at the end of 2024, almost three times the U.S. median, forcing younger buyers either to delay purchases or rely on family support.
Fewer young owners in a tight market
Only about 8 percent of San Diego homeowners are under age 35, well below the national share, underscoring how hard it is for younger residents to move from renting to owning. Analysts say the region’s limited housing supply, high construction costs, and strong investor presence keep prices high and inventory thin.
Help programs aim to close the gap
Housing officials also encourage buyers to track official Home Mortgage Disclosure Act (HMDA) data, which provide a clearer picture of who is successfully closing loans. Early trends show that while millennials dominate loan inquiries, actual approvals still favor older buyers with greater home equity and savings.
Owning a home, still out of reach for many
Millennials have emerged as the engine of San Diego’s mortgage market, a sign of enduring faith in homeownership despite daunting prices. Yet strong demand alone cannot offset the gap between income and housing costs. Unless affordability improves through increased supply, wage growth, or expanded support programs, many millennial buyers will remain on the sidelines, saving longer for a home in a city where opportunity still outpaces accessibility.
