San Diego residents pay a premium for the area's fabulous weather, beautiful beaches and healthy, outdoor lifestyle.
Home prices soared during the housing bubble, rising 127% from 2000 to a peak of $500,000 in late 2005. At that point, according to the National Association of Home Builder/Wells Fargo Housing Opportunity Index, only 3.6% of homes sold were affordable for the typical household.
Prices have fallen significantly from that peak, with more than half of all homes now affordable to the average family. But that's still not good enough to knock San Diego off the least affordable list.
