San Diego home price gains were below the nationwide average in June and failed to keep up with inflation for the 19th month.
The San Diego metropolitan area’s home price increased 1.05% annually in June, according to the S&P Cotality Case-Shiller Indices report released Tuesday. Annual inflation in the San Diego metro area, which includes all of San Diego County, has ranged from 2.5% to 4% for the last two years.
U.S. average annual price gains were 1.5% in June, failing to keep up with inflation for 13 months. Seven of the 20 cities on the index had declining prices.
“The housing market remains under pressure, with 30-year mortgage rates holding near 6.5% in June,” said Rebecca Kaufman, an associate director at S&P. “As financing costs are kept high for prospective buyers, current homeowners remain reluctant to give up the low mortgage rates secured in prior years.”
There are several markets bucking the trend, notably Chicago, which has seen an annual price gain of 6.9%. It was followed by the metropolitan areas of New York, up 4.79%, and Cleveland, up 4.13%.
Seattle saw home prices decline 1.95%, the lowest on the index. It was followed by Las Vegas, down 1.9%, and Denver, down 1.24%. Detroit was left off the index because of reporting delays.
The Case-Shiller index tracks repeat sales of identical single-family houses — and is seasonally adjusted — as they turn over through the years. It uses a three-month rolling average and is often seen as a bellwether of the economy as a whole.
San Diego County’s median home price for single-family homes has stayed around $1 million since the start of the year, according to Attom Data Solutions. The median is the point at which half the homes sold for more and half for less.
Anthony Smith, senior economist at Realtor.com, noted national home prices had posted four straight months of gains, albeit modest ones below the inflation rate. Yet he said price gains face headwinds from interest rates.
“If financing costs stay elevated into the fall,” Smith said, “June’s pickup in price growth may prove difficult to sustain.”
The average 30-year, fixed-rate mortgage rate hit a low this year of 5.98% in late February, according to Freddie Mac. It was up to an average 6.49% in the last week of June, and 6.65% at the end of last week.
Mortgage rates and still-high home prices mean renting could be more favorable to many potential buyers. A new study from real estate website Zumper said San Diego metro had the sixth-highest price-to-rent ratio in the nation. It figured owning a home would cost $3,208 a month more than renting.
While many similar studies acknowledge long-term benefits of owning a home, they also point out the tough decision for many potential buyers. Zumper’s study, which used median rents and home prices, found the greatest imbalance in the U.S. to be in San Jose, where buying costs roughly $8,593 more per month than renting.
There were two metro areas where monthly renting costs were about the same as owning: Pittsburgh and Charleston, South Carolina.
San Diego metro reached a record high on the Case-Shiller index in March 2022 when prices were up 29.6% in a year. The region stayed in the top two spots of the 20-city index for much of 2023 and 2024 before seeing moderate price declines or very small gains throughout 2025. Price gains throughout this year have stayed around 0.5% to 1%, but there have been no decreases.
Annual price growth by metropolitan area
S&P Cotality Case-Shiller Home Price Index, June 2026
Chicago: 6.90%New York: 4.79%Cleveland: 4.13%San Francisco: 3.22%Boston: 2.71%Miami: 2.27%Minneapolis: 1.89%Washington, D.C.: 1.70%Los Angeles-Anaheim: 1.39%San Diego: 1.05%Charlotte: 0.52%Atlanta: 0.27%Portland: -0.38%Dallas: -0.66%Phoenix: -0.88%Tampa: -1.19%Denver: -1.24%Las Vegas: -1.90%Seattle: -1.95%Detroit: N/A
Nationwide: 1.52%