lindi, what are those supervisors planning to do? Leave San Diego? What is happening to those supervisors can be multiplied by tens of thousands of people next year. When those people leave SD, the stores they frequented will have less business, and so the decline starts. Who said you don’t need a recession to see home prices drop? All you need is home prices to stay flat, so MEW stops, and our construction dependent economy starts the lay offs.
The land costs are a large component of the house price. In our case, land value was 1/3 of sale price at time of sale.
workers comp is a huge cost, 30% of labor pay. So if the well driller charges $100/hr, then $30/hr of that is workers comp. This rate was quoted to me by every sub that I asked. This is why illegals are so much cheaper: subtract FICA, Medicare, and workers comp, and for half the pay they still end up with the same wages.