San Diego real estate vs inflation: did it beat the dollar?
158% × 46%
Updated June 1, 2026 · Redfin · BLS / FRED (CPIAUCNS)
Since 2013, San Diego real estate is up 158% while U.S. consumer prices rose 46%. San Diego real estate far outpaced inflation — but the ride was brutal: its worst drop was 16%. Figures in U.S. dollars.
Base 100 since 2013
Why compare San Diego home prices (US$/m²) and U.S. inflation (CPI-U)
San Diego is an expensive Southern California coastal market shaped by its beaches, a large military presence, biotech and tourism, with limited land between the ocean and the mountains keeping supply tight. It was among the metros that rose sharply in the mid-2000s and then fell steeply in the 2008 crash before grinding back over the following decade. Demand has long been buoyed by the climate and lifestyle premium that draws buyers from across the region, and by relative affordability compared with the Bay Area, which kept prices firmly in the upper tier.
Returns by window
| Window | San Diego home prices (US$/m²) | U.S. inflation (CPI-U) |
|---|---|---|
| 1 year | -3% | 4% |
| 5 years | 24% | 24% |
| 10 years | 87% | 39% |
| since 2013 | 158% | 46% |
The price of return: risk
| Asset | Annual volatility | Worst drop |
|---|---|---|
| San Diego real estate | 7% | -16% |
| Inflation (CPI) | 1% | -2% |
$10,000 in each, since 2013
| Asset | Value today |
|---|---|
| San Diego real estate | $25,797 |
| Inflation (CPI) | $14,553 |
Frequently asked questions
Did San Diego real estate beat inflation?
Over the period, San Diego real estate returned 158% while U.S. consumer prices rose 46%. The gap is what the asset earned beyond simply keeping pace with the dollar.
Does this account for the dollar losing value?
Yes. The inflation line is U.S. CPI, the measure of how much purchasing power the dollar lost over the same period. Returns above that line are gains in real terms.
Does a higher return mean a better investment?
Not on its own. A higher return came with higher risk here — the volatility and the largest drop on this page show how much the value swung along the way.
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Descriptive, educational content computed from official public data. Not investment advice. Past performance does not guarantee future results.