How Remodeling Increases Home Values in San Diego’s Top 10 Neighborhoods
San Diego’s housing market is one of the most competitive in the country, with limited inventory and ever-rising demand.
According to recent data from Zillow, typical home values are over $1 million, with some neighborhoods reaching median prices of close to $2 million. As SD homeowners look for ways to maximize their property’s value, remodeling has become an increasingly attractive option.
At Caliber Construction, we’re committed to helping San Diego property owners get the best bang for their buck when planning and implementing home renovations. We don’t just want to improve your house ー we want to maximize its long-term potential.
This blog explores how strategic renovations are boosting home values across San Diego’s top 10 neighborhoods, providing homeowners with strategic opportunities to thrive in this dynamic real estate market.
The Connection Between Remodeling and the Value of Your Home
Does remodeling increase home value? The resounding answer is, you bet, as long as the project is handled correctly.
Home improvements can significantly affect property values by updating key areas, increasing energy efficiency, and improving overall aesthetics and curb appeal. In San Diego, these upgrades are not just about improving functionality — they can directly increase your home’s sale price in the near future.
Whether it’s a full kitchen remodel or the addition of an ADU (Accessory Dwelling Unit), data shows that certain renovations can result in a noticeable rise in home value, although it depends on the level of updates and their location.
Understanding how remodeling trends specifically impact different neighborhoods is crucial for homeowners looking to get the best return on investment. That’s our job: to help you understand which updates pack a punch where you live.
Most Common Remodeling Projects in San Diego
San Diego’s unique architectural styles and climate play a major role in driving specific types of remodels. For instance, kitchen upgrades with open-concept layouts and energy-efficient windows are popular due to the city’s year-round mild weather.
Homeowners are also investing in outdoor living spaces, which capitalize on San Diego’s coastal and temperate climate. Going even further, ADUs have also become a significant trend, particularly as San Diego continues to grapple with housing shortages (which we’ll talk about more later in this piece).
Caliber Construction has been at the forefront of these trends, delivering high-quality remodeling services and home improvements that meet the needs of San Diego residents.
But what’s big in your SD neighborhood? Let’s discuss it!
Top 10 San Diego Neighborhoods and Their Home Value Increases
1. La Jolla
Known for its luxury properties, La Jolla has just recently set a record for San Diego County real estate with a mansion listed at $108 million. Home buyers and sellers in this area are consistently focused on revitalizing older homes through remodels that preserve historic charm while modernizing living spaces.
Additionally, many La Jolla property owners are interested in capitalizing on their oceanfront positioning. This means blending indoor and outdoor living while emphasizing the coastal charm of these high-end homes.
In September 2024, Redfin reported that La Jolla home prices were up 21.8% compared to last year, selling for a median price of $2.3M. You can bet that home renovations played a big role in this significant jump. People don’t want to pay millions for sorely outdated spaces.
2. Pacific Beach
Pacific Beach predominantly consists of houses, townhomes, condos, and multi-unit properties. Most property owners and renters are drawn to the area’s active lifestyle, which makes outdoor spaces, eco-conscious amenities, and tech updates attractive to new buyers.
Redfin reports that Pacific Beach home prices actually fell in 2024, indicating the need for property owners to put a little more effort into making their homes sale-ready through upgrades and renovations.
P.S. Have you been paying attention to the controversial 5-story building that will bypass the 30-foot coastal height limit in the area? Things are changing in Pacific Beach, and it’s important to stay on top of real estate developments that may affect your property.
3. North Park
This San Diego neighborhood is undergoing some significant upheavals. Many vacant properties have been demolished or fully renovated in recent years, indicating that homeowners, buyers, and sellers are interested in bringing this area into the 21st century.
North Park home prices were up 16.6% compared to last year, per Redfin’s reports. To make the most of this boost, we highly recommend that homeowners look into modernizing their older homes as much as possible.
4. Del Mar
In September 2024, Del Mar home prices were down a whopping 50.3% compared to last year, selling for a median price of $3.6M. It’s clear that homebuyers will need to be especially tempted to move into this pricey neighborhood.
Prospective buyers in this area are seeking luxury properties that blend high-end, modern amenities with the area’s natural beauty and coastal charm. They tend to prioritize features such as expansive ocean views, outdoor living spaces like patios and or an in-ground swimming pool, and large, open-concept interiors with upscale finishes.
After all, Del Mar isn’t called “from the sea” for nothing. Homebuyers want to purchase into this oceanfront location, but they need incentive to do it ー which strategic home improvements can provide.
5. Coronado
The Coronado Times recently reported that home prices in the area are steadily increasing. As an island, Coronado has its own unique real estate market trends, which are largely focused on expanding spaces to accommodate more renters and capitalizing on the luxury elements of island living.
Like most of San Diego, Coronado is in the midst of a housing crisis. Many home improvements are therefore focused on optimizing livable spaces for residents and visitors alike.
6. Mission Hills
If you live in Mission Hills (or aspire to), you’re probably seeking a little tranquility and a sense of community ー as is the rest of this neighborhood’s competitive buying market. This is one of San Diego’s oldest and most desirable neighborhoods, and it’s easy to see why.
Remodeling trends in this neighborhood tend to focus on upgrading privacy elements and expanding space for families to live in. Many homes were developed at the turn of the 20th century, which means it’s time to update their interior features and curb appeal.
7. Point Loma
Seafood, outdoor activities, and boating are the big three in this neighborhood.
Point Loma homes are typically considered luxurious and feature the latest renovations such as smart technology additions or opulent outdoor entertainment areas. Remodeling trends also tend to lean toward coastal designs to capitalize on the area’s nautical heritage and oceanfront location.
The median sale price of a home in Point Loma was $1.51M in 2024, down 16.0% since last year, indicating that this market might be a little less competitive than some of its neighbors.
8. Carmel Valley
This area is well-known for its great public schools and job opportunities, but it was once known for its affordable home prices and planned living in the 1980s. As such, many homes are in need of bathroom, kitchen, and appliance renovations to keep up with 2024 home trends.
Considering that this market is highly competitive, according to Redfin, it pays to invest in critical home improvements before putting it on the market in the future.
9. South Park
The median sale price of a home in South Park is around $1.3M, which is down 13.7% since last year. Still, this is considered a deeply competitive market due to its many amenities and unique features.
Charming and more than a little hipster, South Park is all about walkability and community. It’s witnessed many building transformations in recent years, turning historical structures into more livable spaces such as lofts, rental properties, and studio apartments.
10. Hillcrest
This Hillcrest market is hot, which makes remodeling your outdated home a necessity if you want to keep up with the boom. Most renters and buyers are looking for diversity, modern amenities, and affordable living spaces, which makes ADU construction a big topic in the area.
Remodeling Projects with the Biggest Impact on Home Value
Kitchen Remodels
According to USA Today, kitchens remain one of the most popular areas for remodeling. In 2024, there’s a significant focus on creating open-concept designs, updating countertops, installing energy-efficient appliances, and improving storage solutions.
Today, San Diego homeowners tend to opt for modern, sleek designs with high-end finishes that appeal to today’s buyers. As SD Today reported, remodeling companies are busy helping with functionality improvements, eco-friendly appliances, and spaces that embody wellness.
Even a minor kitchen remodel can significantly improve your home’s resale value, especially in a heated market.
Energy-Efficient Options
Speaking of eco-friendly appliances, energy efficiency is a forefront topic amongst San Diego real estate owners. With the growing emphasis on sustainability and rising energy costs, homeowners are increasingly prioritizing home improvements like solar panels, energy-efficient windows, and smart technology.
These upgrades not only lower utility bills but also increase a home’s appeal to eco-conscious buyers. Additionally, new San Diego rebate programs can make it even more cost-effective to upgrade your home’s heating and cooling systems.
Bathroom Remodels
Bathroom remodels (especially master bath remodels) are highly popular in San Diego due to the strong return on investment and the appeal of modern, spa-like features. Homeowners frequently update bathrooms with energy-efficient fixtures, luxury showers, and high-end finishes.
In total, a significant bathroom remodel can generate an ROI of up to 120%, according to Curbio. This not only enhances daily living but can also significantly boost a home’s resale value.
Outdoor Space Remodels
San Diego’s year-round temperate climate makes outdoor living spaces a must-have feature for many homeowners. From patios and decks to full outdoor kitchens and entertainment areas, enhancing backyard spaces has become a major trend.
For example, the National Association of Realtors estimates that an 18-foot by 16-foot concrete paver patio costs about $10,500, and you’ll recoup 95% of the cost in your home value. That’s huge, especially in an outdoor-friendly place like San Diego.
ADU Construction
As San Diego Magazine reports, this area is at the forefront of America’s housing crisis. This shortage has driven a surge in the popularity of ADUs, encouraging many homeowners to expand upon their living spaces or add a new one entirely.
These secondary units provide rental income opportunities, making them an attractive option for both homeowners and potential buyers. Whether it’s a detached guest house or a garage conversion, ADUs are adding significant value to homes throughout San Diego.
Globest reports that ADUs are now outpacing single-family homes in San Diego, revealing a huge increase in housing and “Granny Flat” construction.
Partnering with Caliber Construction for High-Impact Remodeling
Want to maximize your home’s value strategically and efficiently?
Caliber Construction has been serving homeowners throughout San Diego, helping them conduct high-quality remodeling and renovation projects. With expertise in everything from kitchen and bathroom remodels to outdoor spaces and ADUs, we understand the unique demands of each neighborhood and customize our services to meet the specific needs of clients.
Whether you live in a historic home in Coronado or a modern property in Pacific Beach, Caliber Construction will guide you through the remodeling process, ensuring your investment delivers the maximum possible return.
Ready to Begin Your Home Remodeling Project?
Remodeling is reshaping the real estate landscape in San Diego’s most desirable neighborhoods. Carefully planned renovations enable homeowners to increase their properties’ market values, make their homes more appealing to buyers, and reap a strong return on their remodeling project investment.
If you choose to focus on high-impact projects like kitchen upgrades, technology improvements, and or a new outdoor living space, you too can take advantage of the competitive San Diego market.
Contact Our San Diego Remodeling Team Today
If you’re considering a remodel to support your property value, explore your options with our team for experienced guidance and high-quality services.
Get in touch with Caliber Construction to start planning your next home improvement projects. We’ll give you a no-obligation project cost estimate upfront.
ABOUT THE AUTHOR
Caliber Construction
Caliber Construction & Remodeling is a San Diego based design build contractor specializing in whole home renovations, kitchens, bathrooms, and ADUs. Led by a female owned team, the company focuses on thoughtful design, quality craftsmanship, and a clear process from start to finish.