There is a lot of money out here and the lifestyle is desirable. A lot of income in San Diego does not show up in the statistics because there are a lot of small business ownere who make plenty of money and it is not being reported. Additionally there are enough old timers who have set up trust funds due to the fact that the did buy many eons ago who and going to help there kids out.

Yawn. Is all this hidden income a new phenomenon? Because affordability numbers like we’ve seen in San Diego the last few years certainly are new.

It’s really very simple. INCOMES DON’T SUPPORT PRICES.

And these “old timers” will only leave their kids a lot if they sell or sold at the right time, which means now to a couple years ago. Even so, there aren’t enough trust funds to affect the market. At a macro level, new buyers can’t (because most don’t have trust funds) pay the bubble prices.

Sure, some people can afford to buy now. But the smart ones won’t.