There is a limited supply of land. The city is located on a peninsula, so there isn't much room for expansion.
San Diegoenjoys sunny weather all year round, making it a popular tourist destination. This increases demand for housing and drives up prices.
Local real estate experts say San Diego is now in a perfect storm. Inventory is lower than it has been in decades, driving up prices and people just don't make enough money to buy a home. Despite the fact that the housing market remains strong, rising mortgage rates clearly make it more difficult to buy in a market that already has some of the highest prices in the country. When OJO looked at median home price and local income, both factors drove San Diego's unaffordability score to the top of the list, surpassing San Francisco.
In his story, Halverstadt explains why a regional housing shortage that generated these rising rents and home prices has also generated a booming demand for rental assistance and subsidized affordable housing. Los Angeles and San Francisco are overlooked based on people's incomes and the price of single-family homes. The San Diego Housing Commission approved the rent increase following a formal request from your landlord. This creates massive demand for rental properties in San Diego from those who simply can't afford to buy a home.
The rent you would receive on single-family properties for rent in San Diego would, of course, be much higher. A recent report from a Texas company suggests that San Diego tops the list of the country's most unaffordable housing markets. Because San Diego remains such a desirable place to live, both Battiata and Miller say they don't know if or when the market will change for shoppers. San Diego's housing market has ranked among the ten most expensive real estate markets in the country, although it falls short of several other cities on the West Coast.
The San Diego-Carlsbad metropolitan statistical area, CA, is contiguous to San Diego County in Southern California. Demand for housing in San Diego has also been driven by a desire for additional space as people spend more time at home. USD real estate professor Norm Miller adds that local leadership should also examine what future housing construction will look like in San Diego. MacKenzie Elmer explains this best in a story about why costs have skyrocketed and what some in the region think San Diego should do to ease the growing burden of water costs on the local taxpayer.
San Diego County covers an area of 4,526 square miles, making it larger than Delaware or Rhode Island and 82% of the size of the state of Connecticut.