I thought this quote was particularly interesting:

“In fact, California has brought the housing affordability crisis and the resultant slower growth on itself. California’s strict and bureaucratic land-use regulation has driven the price of developable land through the roof. At the same time, areas with more liberal (yet environmentally sustainable) regulation have managed to preserve housing affordability. Median home prices are about $150,000 in Dallas-Fort Worth and Houston and $175,000 in Atlanta. There are similar, even lower, prices in many other areas.”

If there’s something that will keep California/San Diego housing higher than most other areas, it will be this fact outlined above.

It would be interesting to know development fee cost in other US areas vs CA.
I recall something like $25-30k San Diego development fees for a typical sfr (old info)

So will prime CA coastal area prices end up like Europe / Mediterranean where property is priced high, rarely sold and is passed down to family generations?

It would be interesting to know development fee cost in other US areas vs CA.
I recall something like $25-30k San Diego development fees for a typical sfr (old info)

So will prime CA coastal area prices end up like Europe / Mediterranean where property is priced high, rarely sold and is passed down to family generations?

California's strict and bureaucratic land-use regulation has driven the price of developable land through the roof

Can regulations alone add a few hundred thousand to price of land? What about supply being smaller than demand? If Cal. regulations are so expensive, what is the price in the interiors of the state – El Centro, Needles, Bakersfield, Kettleman City, Fresno, Visalia etc., Do they all have $500K and up homes?

Regulated areas…

The more regulations there are in a specific location, the more expensive housing is. California regulations are much more onerous than other states, and so there is a built in premium. True, Bakersfield, Inyo, and all these inland cities of California do not have $500k homes to the degree San Diego does, but they also do not have the same regulations as La Jolla.

As for the cost that regulations add to a property, I do not believe it is in the $100k (maybe in the coast communities) and up but certainly I have seen regulations add an additional $30k to $60k to an SFR. Certainly in places in the coast where you cannot lower the per unit cost using economies of scale, an additional $100k is believable. $200k? Probably not.

I am not saying that these regulations are the only cause of expensive housing here in San Diego and California. However, it is one factor that will continue to keep home prices up in California.

Regulated areas…

The more regulations there are in a specific location, the more expensive housing is. California regulations are much more onerous than other states, and so there is a built in premium. True, Bakersfield, Inyo, and all these inland cities of California do not have $500k homes to the degree San Diego does, but they also do not have the same regulations as La Jolla.

As for the cost that regulations add to a property, I do not believe it is in the $100k (maybe in the coast communities) and up but certainly I have seen regulations add an additional $30k to $60k to an SFR. Certainly in places in the coast where you cannot lower the per unit cost using economies of scale, an additional $100k is believable. $200k? Probably not.

I am not saying that these regulations are the only cause of expensive housing here in San Diego and California. However, it is one factor that will continue to keep home prices up in California.

La Jolla??? Bad example… Haven’t seen a lot of projects going up here in La Jolla. I doubt that you would find lots of new neighborhoods in Greenwich CT, or mid-town Manhattan. Sure La Jolla is brutally regulated… But Chula Vista? CV? Bakersfield?

I’m amazed at where prices have gone, and will be similarly amazed if prices do not retreat to affordability…. Taking the economy with it at the same time!