Lots of views expressed in this thread, thanks all for sharing.

One of San Diego’s charms are the open air space, and having to squeeze more houses in will definitely lessen that appeal. But that is only a small part of the full equation, and there is certainly plenty of options left for building new housing.

I would say that jobs and affordability are some of the strongest factors in pricing, and for now both of these are putting negative pressure on prices. Add to that the raising interest rate (which will worsen the ARM reset explosion), record high amounts of vacant homes for sale, and the fact that San Diego is losing more people than it is gaining. The result seems to be a continuing price adjustment downward and I don’t believe it is anywhere the bottom.

Coastal areas will be less everely hit than those more inland, but they will also feel the pinch in the coming months.