Quote from @Carlos Ptriawan:
Quote from @James Hamling:
Quote from @Carlos Ptriawan:
All around San Diego all I see is a lot of working class poor, oh a few wealthy people, a whole ton more working class poor, another wealthy person. I don't know the ratios but just from experiences going around San Diego, I'd guess it's like 1,000:1. There is a ton of people just scrapping by, holding on by skin of there teeth. Yet ALL the homes are really REALLY expensive in comparison to what the majority of the working class are making.
That does matter, it matters a lot.
so if you see the Fed chart we know two things:
1. money are expanding
2. the wealth of 1% is also expanding by a lot
which means the top 10% money is being controlled the top 10% , that's why it's not being captured in income to mortgage.
Just look at this one fund that's purchasing thousand homes in Ohio last month, they are not coming from income but they come from HNW income that's seeking yield. Home price is no longer driven by income level.
As of price in UK compare to US I will send you one different chart later lol
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Home price is no longer driven by income level.in San Diego the home prices have not been driven by income for decades. The term sunshine tax has existed at least 40 years. It is driven by supply and demand.
Wealthy Retirees come here to enjoy their retirement. If they want to retire here, they must be able to afford the life style they want here. Same for techies that can work from anywhere. If they have the money/income to live in San Diego based on wages elsewhere, then they can live a great life in a great city. The average San Diego household wage cannot afford to live in this city.
The far left (mostly city of San Diego) tries to solve this by incentivizing low cost housing but the unit count that they can support is too low to make much of a dent and the incentives are not popular with the NIMBYs and I can understand why. For example 2 popular ways to incentivize is 1) to allow occupancy beyond zoning limits. So you get 12 plexes in SFH zoning. 2) to increase the height limit to fit more or larger units on the lot. So you can live in your 1 or 2 story SFH next door to a six story residential structure if the developer agrees that a certain number of the new units are deed restricted for affordable housing. The city of San Diego is more extreme than the other jurisdictions in San Diego county and more extreme than the state (meaning more left than the left state government). When affordable housing come up for rent there are hundreds if not thousands of applicants. Getting selected is like winning the lottery.
the reality is the unaffordable housing is solved for most people (those not lucky enough to get selected for affordable housing) by higher occupancy housing. Most areas (some believe it is state mandated but I believe they are incorrect) do not allow occupancy limits below 2 per BR plus one. 2 BR must allow at least 5 tenants, 3 BR must allow at least 7 tenants. I have multiple units at this maximum capacity and when I get a free unit I virtually always get requests for occupancy above quota. This is even in small units as my last open unit was a 2 BR, 1 bath, <700’ unit. I had multiple inquiries for more than 5 tenants including one for 7 tenants saying that they could not find anything that they could afford (meaning they could not afford the 3 BR units. There are multiple families living in a single home.
instead of incentivizing affordable housing for the few lucky enough to get it, they should look to help more people but less help than the lucky few who get selected for affordable housing are getting. Obtaining deed restricted affordable housing in San Diego is like winning the lottery. Also once you obtain such housing if your income grows enough that you no longer qualify, you can stay in your affordable housing. Basically if you get selected for affordable housing, you have low cost housing as long as you stay in that unit which could be your entire life.
San diego is more geographically constrained than virtually all cities. It is already mostly built out. There is minimal infill property left and what is left is no easy to develop. So supply is very constrained/limited. The climate is possibly best in the nation. We have ocean, desert, mountains (a few miles outside the county is Mt Toro at 8,700’) all in the county. We have big city social activities as well as great camping, fishing, 4x4 areas, etc. basically there is a lot of reasons for high demand. High demand, low supply equates to expensive market (the sunshine tax).
good luck
