According to the recent study conducted by the San Diego Regional Chamber of Commerce, the shortage would aggravate by 2020 as there will only be 50 percent of homes to be completed despite the high demands.
There will be 162,000 new units needed within the next three years but only 80,000 units are expected to be completed by then. Expert fear that the San Diego county will lose many residents due to this. It will drive seniors and young individuals out of San Diego if this case continues.
No New Homes for Low-, Moderate-Income Buyers
There is also a great paucity in the number of new homes built for buyers belonging to the low- to moderate-income brackets. The Chamber’s Housing Scorecardreported that several cities did not have significant new home constructions in the last six years for buyers in the said bracket. Moreover, 18 cities in San Diego have shown new constructions but such homes are targeted at buyers with above average income. Homes that are expensive are built sufficiently to meet the demands, leaving those needed affordable homes behind.
Median sales prices for single-family homes in the region is almost 50 percent higher than the overall median price in the US. In the month of May, the median price in San Diego County was $612,000. In the same month, the median price for new homes in the US was $345,800 according to the Economic Researchof the Federal Reserve Bank of St. Louis. If one plans on renting, the average cost of a two-bedroom space would not go below $2,2000 a month.
Housing Shortage Will Dramatically Affect San Diego Economy
If this trend continues, the region will lose many residents. This will bring down businesses due to the lack of workforce. Chamber President and CEO Jerry Sanders said, “Time and again we hear from employers who say their employees and potential employees can’t find housing they can afford. “For businesses in San Diego to continue to grow and create jobs we need to make sure our workforce can afford to live here.”