San Diego 2nd Most Unaffordable Market !!!

[NotCranky]

pertinazzio

Any argument supporting todays prices would have more credibility if we didn’t all just watch funny money blow the roof off of prices. Many elements will provide support, or not, we just don’t know yet.

[NotCranky]

pertinazzio

Any argument supporting todays prices would have more credibility if we didn’t all just watch funny money blow the roof off of prices. Many elements will provide support, or not, we just don’t know yet.

[betting on fall]

supply issues- and building restrictions- did not cause the bubble because supply growth kept up with population through the bubble. (see Rich’s graphs at this site).

Over the long term- meaning over generations- I do think San Diego will see price increases caused by a lack of sufficient supply since we have geographic constraints and infill development is expensive (mostly because of land acquisition and prep costs- not regulation).

But the article is simply wrong that building restrictions have caused the bubble. Funny money fueled panic buying did.

[betting on fall]

supply issues- and building restrictions- did not cause the bubble because supply growth kept up with population through the bubble. (see Rich’s graphs at this site).

Over the long term- meaning over generations- I do think San Diego will see price increases caused by a lack of sufficient supply since we have geographic constraints and infill development is expensive (mostly because of land acquisition and prep costs- not regulation).

But the article is simply wrong that building restrictions have caused the bubble. Funny money fueled panic buying did.

[surveyor]

The “land use planning excess” reason might explain why prices in San Diego are rated a 6 unaffordability ratio vs. a 3 for everyone else. However, the rest of the 4.5 can probably be attributed to the loose lending and speculative bubble that occurred in San Diego.

Are the land use rules part of why San Diego costs so much? Sure. Is it the only reason? Nope.

[surveyor]

The “land use planning excess” reason might explain why prices in San Diego are rated a 6 unaffordability ratio vs. a 3 for everyone else. However, the rest of the 4.5 can probably be attributed to the loose lending and speculative bubble that occurred in San Diego.

Are the land use rules part of why San Diego costs so much? Sure. Is it the only reason? Nope.

[Author]

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