The Impact of Tech Industry Growth on San Diego Real Estate

When you think of San Diego, what comes to mind? Gorgeous beaches? Mild year-round weather? Or maybe a growing tech hub, as this Southern California city is quickly making a name for itself in the technology industry.

Its burgeoning tech sector has been a key driver in this coastal community’s real estate market, not only reshaping demand but presenting new opportunities for investors. Here, we’ll explore how San Diego’s tech growth is impacting real estate in the area.

An Overview of San Diego’s Tech Industry Growth

San Diego has experienced significant growth in its tech industry in recent years, with a strong presence in industries like:

• Telecommunications
• Cybersecurity
• Biotechnology
• Software development

That presence has attracted not only start-ups but major companies. Leading firms like Qualcomm and Illumina even have their roots there, and being so close to research institutions, including the University of California, San Diego, further encourages tech innovation.

With such an industry boom comes employment opportunities, and skilled professionals from across the country are now being drawn to San Diego. As a result, the demand for housing has surged, creating a ripple effect across the real estate market that everyone in the city may be feeling.

Impact on the San Diego Housing Market

Demand

As the tech industry continues to grow and draw in more and more professionals, the demand for housing has also grown. That’s especially true in areas close to tech campuses and San Diego communities known for innovation, including La Jolla and Sorrento Valley.

The booming tech industry and resulting housing demand have contributed to the rate at which new residential developments are being built. Luxury condos and townhomes have become popular construction projects, as they create housing opportunities for more people than a single-family home does.

Pricing

An increase in the demand for housing can also mean an increase in home prices and more competition. As the tech market grows, pricing and competition will likely remain fierce. That makes it especially important to be prepared when house hunting. By having a mortgage lender lined up and finances in order, you’re better prepared to make an offer when you find a house that suits your needs–and in a hot market like San Diego, time is of the essence.

The rental market is also feeling the pressure of rising prices, creating opportunities for homeowners to turn their primary residence into a potentially lucrative investment property.

Investment Opportunities

Current San Diego homeowners aren’t the only ones who can benefit from this booming market. The industry’s growth means houses in tech-dense areas offer strong appreciation potential. And with more professionals relocating for technology jobs, homes in these regions are likely to continue appreciating. That makes them great real estate investment opportunities.

If you’re looking to start or grow your investment portfolio in San Diego, multi-family units or properties that can be converted into multiple rental spaces can be great options. Instead of only being able to rent to one family at a time, you can rent to a few, creating consistent cash flow from multiple sources.

The rise of remote work and hybrid schedules can also be used to your investment advantage. Five years ago, many neighborhoods on the outskirts of the city were considered as being too far away from the hub of things. However, for those needing to be in the area for occasional meetings or commuting to the office only two or three times a week, a longer commute may no longer be a dealbreaker.

Purchasing an investment property in a neighborhood just outside of a tech hub could be a savvy move.

Benefit From the Growing Tech Industry

Whether you’re looking to partner with a local who can help you find your Home Sweet Home, move out of the area and get top dollar while doing so, or start building wealth through rental properties, The Selby Team can assist.

Our experts are standing by, ready to help you leverage San Diego’s tech boom to fulfill your real estate needs. Let’s get started!