Looks like sequestration would cut about 30,000 jobs in San Diego County. That’s about 2.5% of the total jobs.

http://www.cbs8.com/story/21232555/federal-sequester-to-impact-local-families

I figure it will initially effect rents/vacancy and then eventually cool off the investor demand. I figure home prices will be a bright spot for a while as we enter a recession. Housing will likely follow the recession rather than lead it this time around.