Single-family homes in La Jolla have undeniable appeal, but there are viable townhome and condo markets within the Jewel as well. In fact, a recent article in The San Diego Union-Tribune highlighted some growth indicators in the greater San Diego condo market that may strengthen in the coming years. This potential uptick in sales is thanks in part to Millennials gravitating toward mixed-use and multi-family housing options.
Measured Growth in the Condo Market
Last year, CoreLogic reported that condos made up 12.3 percent of all real estate sales in 2014. Sales prices for this sector of the real estate market are increasing steadily across greater San Diego and the nation. According to the The San Diego Union-Tribune, the median condo price in greater San Diego was $353,000 in August of this year. Stats published by the National Association of Realtors show that average sales prices for condos have increased every year since 2012 in both the greater San Diego market and across the nation, making condos in La Jolla an investment option with great potential.
Condos in La Jolla are both attractive housing and viable investment options. La Jolla condo buyers are drawn to multi-family housing options that are more affordable than single-family homes, but are in central locations or close to the beach. La Jolla condo renters appreciate not only great locations within the Jewel, but also the assortment of amenities often featured.
The Millennial Effect
Long lists of attractive amenities and ideal oceanfront and central locations make condos attractive housing options, especially for Millennials, who aren't quite ready to purchase homes in the suburbs.
Millennials are renting for extended periods prior to becoming homeowners, which is creating a need for more multi-family housing options. Last year, CoreLogic noted that the largest age cohort is 20-24 years old and may be driving the rental market.
Ultimately, Millennials will purchase condos and single-family homes, which will alter their participation in the condo market. CoreLogic suggested that Millennials might make the transition from renters to buyers over the next 5-10 years. In the mean time, they are gravitating toward rental properties. In the process, Millennials are creating a need for more multi-family housing options in attractive locations with quality amenities, which is exactly what condos in La Jolla offer.
La Jolla has seen a number of mixed-use property exemption requests recently that if approved will bring new townhome and condo development projects into the Village. These projects in tandem with condominium projects under development and apartments being converted to condos in greater San Diego are signaling growth in the condo market.
The Bottom Line:
The condo market is an attractive opportunity for investors, renters and those interested in buying real estate with ample amenities and great locations, but not necessarily single-family properties.