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The affordability of San Diego County homes is eighth worst in the nation, according to a new study by Kelly Cunningham, economist for the National University System Institute for Policy Research. The National Association of Home Builders measures the percentage of homes sold in a metro area that a median income household could afford.

For the second quarter of this year, ,San Diego ranks eighth worst with a 37.1 ratio. San Francisco is worst at 19.3. Only one of the ten worst-rated markets is outside of California (New York, fourth). The others in order are San Francisco, L.A., Orange County, Santa Cruz, San Jose, San Luis Obispo, San Diego, Salinas, and Napa.

San Diego's median household income at $72,300 is "somewhat better than middle," says Cunningham. SD's median income is 56th among metro areas, while median home prices at $400,000 are tied for twelfth.

San Diego's median income plateaued from 2009 through 2012 and then dropped 4.7% this year.

Cunningham blames strict growth controls and restrictive land use regulations for the big increase in the price of California homes.

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Comments

stingray Sept. 20, 2013 @ 4:56 p.m.

Cunningham blames strict growth controls and restrictive land use regulations for the big increase in the price of California homes.

Read more: http://www.sandiegoreader.com/weblogs/news-ticker/2013/sep/19/california-homes-remain-nations-most-expensive/?login#ixzz2fTq2kUr2

Maybe the real cause is all cash investors soaking up inventory.

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Don Bauder Sept. 20, 2013 @ 7:14 p.m.

Stingray: Speculators buying homes with cash is one reason prices are so high. Another is obvious: coastal California is a very desirable place to live. Best, Don Bauder

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KellyCunningham Sept. 20, 2013 @ 9:17 p.m.

Speculation is clearly prevalent in San Diego/coastal California housing prices. This is a significant reason for the extraordinary wide housing price/household income distortion. "In markets where there is an expectation of constraints on future supply – speculators are much more likely to believe it is possible to extract extraordinary profits as they bet that the supply will not be able to keep pace with short term increases in demand." pages 4-5 http://www.nusinstitute.org/assets/resources/pageResources/Economic_Ledger_Housing_Sept2013.pdf

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Don Bauder Sept. 21, 2013 @ 7:43 p.m.

Kelly Cunningham: You are saying that speculators are more likely to jump into a market with constraints on supply. Best, Don Bauder

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Burwell Sept. 20, 2013 @ 6:03 p.m.

Limits need to be placed on home ownership in areas with high prices. California needs to go back to pre-1950 law which prohibited non-U.S. citizens from buying or owning real estate. Laws need to be enacted to encourage responsible behavior and limit competition for available housing. For example, convicted drunk drivers should be barred from living in congested urban areas and should be barred from buying houses. A bankruptcy filing should bar an individual from buying or owning a house for 15 years. In areas with high prices, laws should bar single family residences from being owed as rentals. Bill Gates, a resident of Washington state with no business interests in San Diego, should not be allowed to own a house in Rancho Santa Fe. Another problem is the cancer of the nonrecourse loan. No one should be able to simply walk away from a real estate loan with no further liability to the lender for the unpaid amount.

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Don Bauder Sept. 20, 2013 @ 7:19 p.m.

Burwell: I see a lot of problems with your proffered solutions. A lot of well-paid tech employees may be waiting to gain citizenship. I can't agree they should be barred from buying a home.

How many convictions for drunk driving should disqualify one from buying a home? I don't see why, in upscale areas, renting out homes should be barred. Best, Don Bauder

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mridolf Sept. 20, 2013 @ 6:55 p.m.

And only land owners should have the right to vote. How Colonial of you. Bring back the debtors prisons. Sooo, if only residents should be able to buy a house, then how does one become a resident, if they can't buy a house? What did you do for a living before you retired?

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Don Bauder Sept. 20, 2013 @ 7:21 p.m.

mridolf: Many of our Founding Fathers would like that: only landowners can vote. Remember, people from debtors' prisons were major settlers of Australia. Best, Don Bauder

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Burwell Sept. 20, 2013 @ 10:12 p.m.

The impact of immigration should be imperceptible to the native born and they should not have their lives disrupted by a torrent of immigrants. Qualcomm's unleashing a tsunami of 6,000 foreign-born engineers armed with $120,000 per year jobs on a tight housing market is an outrage. And yes, these engineers should not be allowed to own houses or impact the price of housing. Qualcomm should be forced to construct company housing for these engineers and build company funded schools to educate their children.

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Don Bauder Sept. 21, 2013 @ 7:45 p.m.

Burwell: I agree with you that the H-1B program, by which foreigners (greatly from India) take tech jobs on a supposedly temporary basis is a problem. Best, Don Bauder

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