It appears we are watching the “affordability” disparity implode everywhere. Logically, if you are spending 10X your income to service a mortgage, what’s left over? The local economy cannot thrive on the 10X income to mortgage disparity. That’s exactly why it’s imploding now, because it was all propped up by faulty credit. This is just the beginning of this bust — while WS looks for another place to create a bubble and suck all the money to the very top.
San Diego is no different than any other place, unless piling 4 “immigrant” families into a 2500 square foot home to service the same mortgage for 50 years is economically sound…. San Diego’s median income does not support the median home price – and fundamentally that is off, which is the basis of Patrick’s blog.
