In the graph Rich graphs wages since 2001 and they are up maybe 18%, not 30%.
I’m not sure where Rich gets his numbers. Median household income for San Diego County according to http://www.census.gov:
2001: $46,845
2006: $59,591 (27% increase)
For San Diego proper:
2001: $46,315
2006: $58,815 (27% increase)
this is a lower middle class area unless you are north of Calle Cristobal. Overall wages may be up ~18%, but the bottom half isnt feeling the good times.
In San Diego, bottom half / lower middle class does not get to own houses. There are not enough houses for everyone. Also, those numbers are median, not averages.
Third, it isnt like what wage growth was seen isnt being eaten away by gas, utilities, food and other inflation that is alot higher.
That’s true. Not sure how important that is though.
Most middle income people dont have $80000, let alone that in cash to invest.
How do you think people bought houses back in 2001 and before, when banks weren’t giving away zero-down loans with funny interest rates to anyone with a pulse? You had to bring some cash to the table, even to buy a house in MM.
People who can buy in carmel valley can easily buy in MM, but that doesnt mean that they want to live in MM.
The way I see it, MM is an entry level market, CV is a move-up market. You don’t buy your first house in CV. You buy in MM or Clairemont, you pay off your mortgage, you save money, then you trade up.
