Inflation continues to sting in San Diego, with significant numbers of local adults surveyed saying elevated prices are having a large impact on their finances. Meanwhile, among people who don’t own a home, the majority say homeownership will never be affordable – not now, not ever.
These are among the topline findings from Northwestern Mutual’s newly released 2025 Planning & Progress Study, the company’s proprietary research series that explores the attitudes of people in San Diego and across the country – their attitudes, behaviors and perspectives across a broad set of issues impacting their long-term financial security.
The study finds that nearly half (47%) of those in San Diego believe their household income is growing slower than inflation. That’s more than five times greater than the 9% who say their income is growing faster than inflation, while one third (34%) believe their income is on pace with inflation.
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Feeling the sting
Inflation is hitting people locally everywhere – from the grocery aisle to the gas pump, to their childcare expenses and more.
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A large majority (83%) in San Diego say they have experienced elevated grocery costs in the last three months. Nearly seven in ten (69%) experienced elevated utility costs, while 65% experienced elevated gas costs, 58% experienced elevated housing expenses and 21% experienced elevated childcare expenses.
Not surprisingly, just under four in ten (39%) San Diego adults indicate they feel financially secure. Meanwhile, just over a fourth (27%) say they do not feel financially secure. And just half (51%) of adults consider themselves to be “disciplined planners.”
“Financial insecurity continues to be an epidemic here in San Diego,” said Ashley Russo, wealth management advisor. “It’s no surprise that many people are struggling, even those whose incomes are above average. The question is what can be done about it, and it’s an individual decision. In my estimation, there is no better time than right now for people to take control of their money habits and financial plans.”
Credit cards are top source of debt
Across all San Diegans surveyed, the primary source of non-mortgage debt by far is credit cards, accounting for three times the #2 source (car loans) and nearly six times the #3 source (medical debt). The study also found that 66% of adults in San Diego say they prioritize paying down debt versus 34% who prioritize saving.
Among those in San Diego who carry personal debt, nearly half (48%) owe less than $5,000, exclusive of mortgages.
Home ownership feels out of reach for many
Among San Diego residents who are not currently homeowners, over half (52%) say that owning a home will never be financially affordable – now or in the future.
Exactly half of San Diego adults (50%) believe the American Dream is alive and well, and 46% believe it is attainable for most Americans. People are more optimistic about their personal situations, with 66% considering the American Dream attainable for themselves.
But there is some evidence the vision of the American Dream is shifting. While three-quarters of local adults (75%) say that home ownership is essential for building wealth, three in five (60%) believe it is possible to achieve financial security without owning a home.
“Today, the people of San Diego are redefining the American Dream and finding new ways to achieve it,” said Russo. “For some, the path to building long-term wealth may depend more on the stock market than the housing market. Keep in mind that you don’t have to go it alone. A financial advisor can be a great help, helping you build a personalized roadmap of your own to financial security.”
About The 2025 Northwestern Mutual Planning & Progress Study
The 2025 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual among 4,626 U.S. adults aged 18 or older. The survey was conducted online between January 2 and January 19, 2025. Data are weighted where necessary by age, gender, race/ethnicity, region, education, marital status, household size, household income, and propensity to be online to bring them in line with their actual proportions in the population. A complete survey methodology is available.
About Northwestern Mutual
Northwestern Mutual has been helping people and businesses achieve financial security for more than 165 years. Through a comprehensive planning approach, Northwestern Mutual combines the expertise of its financial professionals with a personalized digital experience and industry-leading products to help its clients plan for what's most important. With nearly $700 billion of total assetsi being managed across the company’s institutional portfolio as well as retail investment client portfolios, more than $38 billion in revenues, and $2.4 trillion worth of life insurance protection in
force, Northwestern Mutual delivers financial security to more than five million people with life, disability income and long-term care insurance, annuities, and brokerage and advisory services. Northwestern Mutual ranked 110 on the 2024 FORTUNE 500 and was recognized by FORTUNE® as one of the "World's Most Admired" life insurance companies in 2025.
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Subsidiaries include Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company® (NMWMC) (investment advisory and services), federal savings bank; and Northwestern Long Term Care Insurance Company (NLTC) (long-term care insurance). Not all Northwestern Mutual representatives are advisors. Only those representatives with "Advisor" in their title or who otherwise disclose their status as an advisor of NMWMC are credentialed as NMWMC representatives to provide investment advisory services.
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1 Includes investments and separate account assets of Northwestern Mutual as well as retail investment client assets held or managed by Northwestern Mutual.
