There are several reasons why one part of the country costs more than another part of the country. It can’t be pinned down on any one reason, except for of course, demand. If there’s a lot of demand for it, that’s why there’s a price point for it.
As for why San Diego justifies a higher price than Florida, one of the answers is that it has always been more difficult to build in California than in Florida. California puts a lot of regulations, requirements, and usually it takes a long time for a major housing complex to go through (sometimes it can take as long as ten years). Add to it local regulations, requirements, and the cost of such activity is much higher than everywhere else. However, Florida, Texas, and some other places do not have nearly as much onerous regulations and requirements and as a result, the cost of housing is much lower.
Because it is easier to build in other locations, if there is a decent increase of demand, an increase of supply can be applied to meet that demand. However, because San Diego’s “supply” is being constrained by regulations, requirements, and costs, it is often difficult for the market to meet the demand.
Not saying this is the one and only reason for the high cost of San Diego housing, but it is in my opinion the major factor why and accounts for probably most of the cost difference. How much? Don’t know.
