San Diego County has the highest share of HOA-governed homes for sale in the country — about 57% of listings carry monthly dues, well above the 40.5% national average.1 The median monthly fee is $367 and rising. At downtown high-rises, dues regularly exceed $1,000 per month. None of that is news. What is news is how fast those numbers are moving — and how thoroughly they're reshaping which condos pencil out for buyers in 2026.
The numbers, in plain terms
| Metric | San Diego County | National median |
|---|---|---|
| Share of listings with HOA1 | 57% | 40.5% |
| Median monthly HOA fee1 | $367 | $125 |
| YoY change in median fee1 | +8% ($340 → $367) | ~+5% |
| Downtown San Diego luxury condo range2 | $600–$1,000+/mo | N/A |
| California legal cap on annual increase (no vote)3 | 20% | Varies by state |
That last row is the one most buyers don't see coming. Under California Civil Code § 5605, an HOA board can raise dues by up to 20% per year without a homeowner vote.3 A $400 monthly fee can become $480 next year, $576 the year after, and $691 the year after that — all legally, all without you weighing in. Compounded over five years at the maximum allowed, that's a 149% increase.
What's driving the increases
Three forces, all converging:
Insurance costs
HOA master insurance policies — which cover the building, common areas, and shared infrastructure — have risen sharply in California due to wildfire risk, increased reinsurance costs, and the FAIR Plan assessments that followed the 2025 Los Angeles fires. State Farm received emergency rate approvals of 17–20% on California homeowners insurance in 2024–2025, with similar movement on commercial master policies. HOAs absorb those increases and pass them through to dues.
SB 326 inspection requirements
California Senate Bill 326, also known as the "balcony bill," requires every condo association in the state to inspect load-bearing balconies, decks, and stairways by January 1, 2025, with reinspections every nine years thereafter.4 Inspection costs typically run $400–$1,200+ per building, and that's just the inspection — any repairs found are additional. For older San Diego buildings with deferred maintenance, the post-inspection repair bill can run into the six figures, almost always recovered through fee increases or special assessments.
Deferred maintenance catching up
San Diego has a substantial inventory of condo buildings from the 1970s, 1980s, and 1990s that under-funded their reserves for decades. Reserve studies — when they're actually performed — have been revealing chronic underfunding. Roof replacements, plumbing risers, elevator overhauls, and parking-structure repairs are now arriving as either fee increases, special assessments, or both.
Before making an offer on any HOA-governed property, request the reserve study and the current reserve balance. A well-managed HOA in California should have reserves funded at roughly 70%+ of the calculated 30-year replacement need. If the reserve study is more than three years old, or the funded percentage is below 50%, expect either a fee increase or a special assessment in your near future. Both are legal, both are coming.
What this does to affordability math
Lenders treat HOA dues exactly like principal and interest for DTI purposes — every dollar of HOA reduces your borrowing capacity dollar-for-dollar. At today's rates, the $367 median HOA fee reduces your maximum purchase price by roughly $60,000 compared to an HOA-free home with the same monthly payment. A $1,000/month luxury-tower HOA reduces it by roughly $165,000.
Worked example. Same buyer, same income, same approval ceiling at $7,500/month back-end DTI:
| Scenario | HOA-free home | Median HOA condo | Downtown high-rise |
|---|---|---|---|
| HOA fee | $0 | $367 | $1,000 |
| Available for P&I + tax + insurance | $7,500 | $7,133 | $6,500 |
| Approximate purchase price ceiling | $1,220,000 | $1,160,000 | $1,055,000 |
| Reduction vs. HOA-free | — | −$60,000 | −$165,000 |
The high-HOA condo isn't just a more expensive monthly. It's a ceiling cut on the actual price of the home you can afford to compete for.
Where the pressure is heaviest
Three submarkets in San Diego where rising HOA costs are visibly affecting prices:
- Downtown high-rises (East Village, Marina, Cortez Hill, Little Italy towers). $600–$1,000+ monthly dues, exposure to amenity-heavy reserve calls, SB 326 inspection costs on tall buildings. Resale prices have softened more than the broader San Diego market.
- 1970s–1980s condo complexes throughout central San Diego. Often 50–150 units, originally built without adequate reserve funding, now facing roof replacements and SB 326 compliance simultaneously. Dues commonly running $450–$650/month.
- Older Mission Valley condo communities. Reserve catch-up is the dominant driver; many of these complexes are 30–40 years old and reaching their second major capital cycle.
What's holding up better
Not every HOA-governed property is in distress. Three categories where the math works:
- Newer master-planned communities (Otay Ranch, Del Sur, 4S Ranch). Dues are typically $150–$250 monthly. Buildings are new enough that reserve obligations are still well in the future. The catch is that these come with Mello-Roos — a separate cost mechanism. More on Mello-Roos here.
- Townhomes with limited common area. Detached or semi-detached townhomes with only landscaping and exterior maintenance shared can have dues under $200/month. Less amenity, lower fee, lower fee-growth risk.
- Well-managed older buildings with strong reserves. They exist. The buildings that funded reserves properly for two decades and have current reserve studies showing healthy ratios are absorbing SB 326 costs without major fee shocks. These are worth paying a premium for at purchase.
See how a specific HOA fee changes your San Diego affordability.
Open the calculator →The buyer's checklist
Five questions to ask before making any HOA-governed offer in San Diego:
- What's the current monthly fee, and what's the 5-year history of fee increases? A board that hasn't raised dues in 5 years isn't a virtue — it's a red flag for deferred maintenance about to hit.
- What's the current reserve balance, and what's the funded percentage? Below 50% funded is a yellow flag. Below 30% is red.
- Is there a current reserve study, dated within the last 3 years? Many California HOAs are out of compliance on this requirement. Ask to see it.
- Are there any pending special assessments or known upcoming capital projects? SB 326 inspections happen on a schedule. Roof, plumbing, and elevator timelines are predictable. The HOA either knows or hasn't planned — both are useful information.
- What does the master insurance policy cost, and when does it renew? A renewal due in the next 6 months in California is a near-certainty for a fee increase.
The honest read
San Diego's structural HOA exposure isn't going anywhere — too much of the housing stock is condo, townhome, or master-planned to avoid dues entirely. But the 8% year-over-year fee growth, plus the SB 326 compliance cycle, plus insurance pressure, plus reserve catch-up means the buyer who treats HOA dues as a fixed monthly cost is going to be wrong. Treat it as a variable that can grow 10–20% per year, model the math accordingly, and weigh that risk against the convenience of HOA-included maintenance and amenities.
For some buyers — retirees, people who don't want to maintain a yard, anyone who values the lifestyle — the trade-off still pencils. For others, the rising-fee risk is enough to push the decision toward a freehold home in an older San Diego neighborhood.
HOA fees vary widely by community, building, and unit. Always review actual association documents, reserve studies, and recent meeting minutes before committing to a purchase. Educational content only — not legal, tax, or financial advice.
References
- Axios San Diego. (2026, March 23). More San Diego homes for sale have HOA fees, and monthly dues keep rising. Retrieved April 28, 2026, from https://www.axios.com/local/san-diego/2026/03/23/hoa-fees-rise-san-diego-homes-for-sale-2025
- Cheng, S. (2025). Downtown San Diego HOA fees: Condo vs. single-family homes. Retrieved April 28, 2026, from https://www.findyourhomesandiego.com/blog/2025/8/1/whats-the-difference-between-condo-and-single-family-hoa-fees-in-downtown-san-diego
- California Civil Code § 5605, Davis-Stirling Common Interest Development Act. Retrieved April 28, 2026, from https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=5605&lawCode=CIV
- California Senate Bill 326 (2019), Civil Code § 5551 (Balcony Inspection Law). Retrieved April 28, 2026, from https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB326