Written by William Hale
Strong demand for housing in San Diego has generated record breaking numbers in the housing market, as the median price for a single-family home across San Diego County was $842,000 in 2021. Condo and townhome prices also increased over 17% this past year, with the average price a staggering $545,000.
Perhaps surprisingly, the Coronavirus pandemic helped many people save money over the past two years. Dr. Alan Gin, an economics professor at the University of San Diego explains that multiple factors evident from the early-pandemic lockdowns have contributed to what many economists have called a “COVID piggy bank.”
“Restaurants were closed so people didn’t eat out as much and people didn’t travel… And so the combination of this extra savings, continued income through remote work, and low-interest rates has made the housing market really strong,” said Gin.
Home prices in beach towns like La Jolla and Del Mar are, as expected, averaging $2,950,000 and $2,600,000. However up north in Carlsbad, the average price for a single-family home was $1,500,000 — a nearly 30% increase.
Carla Farley, the immediate past president of the San Diego Association of Realtors suggests looking for more affordability in East County areas like El Cajon and Lemon Grove, as well as towns south of Interstate 8 like National City and Imperial Beach.
Farley points to a multi-year lack of inventory in San Diego County as the primary reason for such high demand. Multiple factors contribute to the slowing of housing development, but strict regulations including the California Environmental Quality Act hurts Californians by hindering the building and approval process, sometimes delaying development projects by years.
While other states weaken regulation to insure homebuyer affordability, California does the opposite. No wonder buyers, developers, and builders are looking to take their business elsewhere.
Photo Cred: Thomas De Wever/Getty Images
