San Diego Water Bills Jump 31% by 2027: How Rising Utility Costs Push Fixed-Income Homeowners to Cash Sales

The Timeline: When Your Bills Will Increase

The San Diego City Council's October 28, 2025 decision set a four-year schedule of rate increases affecting hundreds of thousands of customers across 11 cities. Here's what homeowners face:

The original proposal called for water rates to increase 62% through 2029, but council members scaled back the plan after intense public opposition. Councilman Stephen Whitburn proposed the modified two-year plan, contending that the city's water system finances might improve by 2027. The measure passed by a single vote, with council members acknowledging the burden on residents while warning that without the increases, the city faced bond covenant defaults or laying off 500 Public Utilities workers.

For a typical San Diego household that previously paid around $80 monthly for water and $52 for sewer service, the January 2026 increases pushed combined bills to approximately $140-150 per month. By 2027, that same household can expect to pay $180 or more monthly for water and sewer combined.

Which Cities and Neighborhoods Are Affected

The rate increases don't impact all San Diego County residents equally. The water rate hikes affect customers in San Diego proper, plus Coronado, Imperial Beach, and Del Mar, which are served by the city's water system.

The sewer rate increases cast a wider net, affecting customers in 11 cities and areas:

This means that while Coronado residents face both water and sewer increases, cities like Chula Vista and El Cajon will see sewer rate hikes but may get their water from other districts. The complexity of overlapping service areas means homeowners should verify which utilities serve their specific property.

The increases stem primarily from rising costs to purchase water from the San Diego County Water Authority, the city's second-largest individual expense. Additional factors include maintenance costs, energy rate increases, and operating expenses for Pure Water Phase 1, the city's water recycling program.

The Fixed-Income Homeowner Squeeze: When Cumulative Costs Drive Cash Sales

For many San Diego homeowners, especially seniors on fixed incomes, the water and sewer rate increases represent the latest addition to a growing list of uncontrollable expenses. Councilmember Kent Lee has been lobbying for a water rate subsidy program for low-income residents, stating bluntly: "For many residents, the increases they are seeing at this point are beyond what they can afford."

When monthly ownership costs climb by hundreds of dollars while income remains static, the financial math changes. For financed buyers, higher utility costs affect debt-to-income ratios, potentially limiting the buyer pool for a property. But cash buyers can offer an immediate exit strategy.

Selling to a cash buyer eliminates months of paying escalating utility bills during the traditional listing process. There are no repairs required, no staging costs, and no uncertainty about whether a financed buyer will qualify. For homeowners whose monthly expenses have become unsustainable, a cash sale provides a clean financial break—trading the ongoing burden of increasing ownership costs for immediate liquidity.

Some San Diego residents may qualify for assistance through programs like MAAC's Low Income Household Water Assistance Program (LIHWAP), which helps with past-due water and wastewater bills. However, these programs provide temporary relief rather than solving the long-term affordability challenge facing fixed-income homeowners.

FAQ: San Diego Water Rate Increases and Home Sales

Conclusion

San Diego's 31% water rate increases through 2027 aren't happening in isolation. They're part of a broader affordability crisis squeezing homeowners from multiple directions. For fixed-income residents and seniors facing the compounding effects of rising property taxes, insurance premiums, HOA fees, and now dramatically higher utility bills, the financial burden of homeownership may simply become unsustainable.

While the City Council's 5-4 vote reflected the difficult balance between infrastructure needs and resident affordability, the reality remains: hundreds of thousands of San Diego homeowners will pay significantly more for basic utilities starting this month. For those considering their options, a cash sale offers a path to escape escalating ownership costs and regain financial flexibility.