It's no secret that real estate San Diego is expensive. In fact, this
city has recently made many lists of the most expensive housing markets in the
entire country. Many California cities have expensive property values, but San
Diego usually tops even that list.
Both homeowners and renters may struggle to find affordable housing in this
city and even in surrounding areas. It's pretty common knowledge that San Diego
housing is expensive; however, it's interesting to explore some of the reasons
why this is true.
Three Reasons Why
San Diego Real Estate is Expensive
This outlines the major reasons why housing and other real estate have such
a high value in the San Diego Metro Area:
- Climate: The climate makes the
city very desirable. Lots of sunshine and a nearby coastline attract
residents to the area.
- Culture: People like the culture
of the city. This multicultural city has many attractions. It also
combines plenty of historical areas with high-tech industries.
- Environment: Environmental and
building rules may limit supply to some extent. One thing that makes the
city attractive is that many coastal areas have been preserved. However,
this also limits the supply of land to some degree.
A lot of housing in San Diego is also owned by investors. This means that less
property is actually for sale and may only be open for renters. The number of
investors may drive up prices for property that is for sale. Investors may be
able to wait longer for the right price than an average homeowner who is
motivated to make a quicker sale.
Will Real Estate
Remain Expensive in San Diego?
Some people compare San Diego to San Francisco. Both of these cities are
famous for high housing prices. While some folks argue that the climate is much
better in the Southern California city, the job market is better in San
Francisco.
That raises concerns about an affordability issue in San Diego that
may be much greater than the one faced up north. It's likely that prices will
continue to rise in this lovely city, but they may not continue to spike as
they have in the past.
