Individuals have different priorities and values, of course, and this is dictating their choice of ideal city or state to live in, as revealed in this thread. If you already live in San Diego, that choice probably reflects your preferences.
I suggest that an area’s economic health, demographic trends, and quality of life factors largely drive real estate prices, and that San Diego has fallen considerably. Remember, a few years ago Forbes ranked San Diego as the best city in the country for, I believe, business start-ups and quality of life for college graduates. Now we are not even in the top ten.
Montana and Wyoming are way different from San Diego, and I suspect their citizens are just as disdainful of our quality of life characteristics as some of us are of theirs. Different strokes, etc.
Back to data: CA has the 3rd highest unemployment rate in the nation, and San Diego’s is rising rapidly of late, and it is not just real estate related. Wyoming’s is 2.6%, lowest in the nation. Montana’s is 3.8%. Both are energy and agriculture-rich, so their economic future is assured.
Both states have growing populations–the famous U-Haul price ratio reflects this.
Most worrisome for CA is the demographic trends, as we lose middle-class families and high-earning taxpayers to other states, and import low-earning, government-dependent citizens and non-citizens, supplemented by the high birth rate of our existing poor people.
Yes, San Diego will always have its weather and other attractions. But some long-run demographic and economic trends have really turned against us. Real estate prices and rents in the future will reflect this.
