You know the myth: “Housing prices in San Diego are so high because everyone wants to live here.” It’s depressing if you want to buy a home, but it turns out it just isn’t true. We’ve been losing more people than we’ve gained over the last four years, and it started just about the time housing prices started going up.
Catherine MacRae Hockmuth of Voice of San Diego has an interesting take on it:
…a society in which only 9.4 percent of the population can afford a median-priced home is not a healthy society. The situation is bad for businesses who struggle to attract workers whose money will stretch much further in places like Dallas or Atlanta. And before you offer up San Diego’s mantra — But then you have to live in Dallas or Atlanta — consider that people who live there like it well enough and they don’t have to do financial gymnastics to own homes there.
So here’s the question: since there isn’t an influx of people driving housing prices up (at least here), and if it’s not due to rising wages or inflation, then what’s the real cause?