Real Estate Investment Opportunities in Hillcrest

Thinking about your next real estate investment move? San Diego’s uptown neighborhood, Hillcrest, is definitely worth exploring.

While this community does require substantial upfront investment capital, high occupancy rates, new development projects, and an inclusive environment make this an appealing place for renters and investors alike

But should you invest here? We’ll give you an overview of the situation.

What Investors Need to Know About Hillcrest

If you’re wondering why Hillcrest is a hotspot for real estate investors, consider the following:

Location

Hillcrest is only a stone's throw away from major freeways, the waterfront, and other amenities. These include sprawling Balboa Park, known for its 1,200 open acres and proximity to museums and theaters, Mission Beach, La Jolla Cove, Mount Laguna, and Cuyamaca Rancho State Park.

Community

Hillcrest is best known as an LGBTQ- friendly community, but it also attracts a nice mix of residents, including young professionals, families, artists, and even retirees.

And because it's relatively small and walkable, residents do not have to rely on cars to access the numerous bars and restaurants that dot the tree-lined streets. These features make the Hillcrest community incredibly appealing to renters—especially those who either prefer to rent or cannot afford the cost of entry to purchase a home.

Rental Market

The rental market is competitive but offers a solid return on investment for investors who can afford the cost of entry. Here are some numbers to help you put the possibilities into perspective. As of this writing:

Apartments

• Median rent was $2,648/month for an apartment
• A one-bedroom apartment typically costs $2,506/month
• A two-bedroom apartment costs roughly $3,500/month
• The vacancy rate was about .7% lower than the rest of San Diego

Houses

Pricing the rental market on houses is a little trickier, but here are the numbers we’re seeing: Median rent for a single fmily home is currently $3,200. However, rent can vary depending on the location, size, and more.

Development

While the housing market is competitive, real estate development projects like The Hillcrest Gateway are opening up even more possibilities for investors. While this project is still in development, here’s what we know:

Developers submitted a plan application in 2022 detailing the specifics of the project. In addition to including parks and pedestrian plazas, developers proposed several buildings up to 14 stories tall to accommodate residential units and more affordable housing options for residents. This project is still undergoing review, but this is one worth keeping an eye on.

Cost of Entry

Currently, the median home value in Hillcrest is around $799,000. To put that number in perspective, let’s compare it with other moderate and luxury-end communities in the San Diego area:

Lower-Priced Options:

• City Heights: $620,500
• East Lake: $653,000
• Otay Ranch: $785,000

Moderately Priced Options:

• Normal Heights: $865,000
• North Park: $905,000
• Clairemont: $1,100,000

High-End Options:

• La Jolla: $2,225,000
• Coronado: $2,900,000
• Rancho Santa Fe: $4,200,000

Keep in mind that these numbers are subject to change, but as of this blog’s writing, this is what the San Diego market looks like.

Find Your Dream Home With a Selby Realtor

If you’re interested in exploring investment opportunities in the Hillcrest community, our experienced agents can help. From their market knowledge and negotiation expertise to their tailored searches, streamlined processes, and professional network, our team has the experience and skills necessary to help you find your ideal investment property. Contact us today!