Unlocking Home Equity for a Fulfilling Retirement in San Diego

If retirement is on the horizon, now is the time to start planning your next chapter. San Diego’s lifestyle and coastal charm make it an incredible place to retire, but you also want to ensure you're financially set up to enjoy it to the fullest.

What you may not realize is that you likely have a hidden source of wealth—your home. According to the Federal Housing Finance Agency (FHFA), home values have risen significantly over the past five years, and in a high-demand market like San Diego, that appreciation is even more pronounced.

San Diego Homeowners Have Built Significant Equity

San Diego has seen substantial home price growth, increasing homeowners’ net worth along the way. According to Freddie Mac:

" . . . Boomer overall wealth increased by $19 trillion, or $486,000 per household, half of which is due to house price appreciation."

If you've owned your home for a decade or more, your equity is likely even higher. That means you have a valuable opportunity to leverage that equity to fund your retirement dreams. Whether you want to travel, relocate to a smaller home, or simply enjoy financial freedom, selling your current home could be a smart move.

Why Downsizing in San Diego Makes Sense

Selling your home and downsizing to a smaller property—or even relocating to a more affordable area—can unlock your home equity, giving you greater flexibility and security in retirement. As Chase notes:

"Retirement is an exciting time. Selling your home to take advantage of the equity or to downsize to a more affordable home can open up additional options for your future."

Here’s how downsizing could benefit you:

1. Lower Your Cost of Living

AARP data shows that the number one reason adults 50 and older move is to reduce their cost of living. In San Diego, where property taxes, utilities, and maintenance costs can add up, downsizing could mean significant savings. A smaller home or a move to an area with lower expenses could free up extra funds for travel, hobbies, or other investments.

2. Simplify Your Life

Owning a larger home requires upkeep and maintenance, which can become a burden in retirement. Downsizing to a condo, townhouse, or smaller single-family home could give you more time to enjoy San Diego’s beautiful beaches, parks, and cultural attractions without worrying about extensive home maintenance.

3. Increase Financial Flexibility

Selling your current home allows you to turn your built-up equity into cash, which you can use however you see fit—whether it's investing, paying off debt, or creating a financial cushion for the future. With home values in San Diego remaining strong, it’s an opportunity to capitalize on your investment while market conditions are favorable.

Planning Your Next Move

If you’re considering downsizing, working with a knowledgeable real estate agent is the first step. They can help you assess your home’s value, understand your equity position, and guide you through the selling process. Plus, they can assist in finding the right next home that fits your retirement lifestyle and financial goals.

Bottom Line

If you’re planning to retire in 2025, now may be the ideal time to sell and downsize, unlocking the equity you’ve built in your San Diego home. Let’s start planning your move so you can enjoy a retirement that feels like an endless California sunset.