As if things couldn’t get more expensive, home prices in San Diego County have gone up a whopping 23% from August 2020 to August 2021 according to the most up to date data. This growth not only is greater than the national average increase in homes but also greater than Los Angeles and Orange County. The average home price in San Diego county is now $725,000. While it has been no secret that the cost of living in California has been rising due to increased energy and gas prices, the rise in housing prices hurts Californians who want to buy homes.
San Diego Realtor Mark Powell spoke about the rise in prices and the affordability of a home, “Prices have escalated to a point where very few people are able to qualify for the median price home in San Diego.” One of the major issues facing San Diego housing is that construction has not been able to keep up with the demand. 20,000 housing units are needed and only around half have been built. The state recently passed legislation that will increase housing density. The law will allow more housing units to be built at transit centers and by allowing more granny flats. The number of homes on the market has also decreased dramatically in San Diego County, with only 2500 homes on the market. That is a decrease of 30% from one year ago and 60% from two years ago.
It has certainly become more and more expensive to live in California and try to start a family. While current homeowners are ecstatic that their homes have increase in value so much that they can sell it for a big profit, new homeowners will struggle to buy homes at such a high price.