San Diego's homes among the least affordable
The affordability of San Diego County homes is eighth worst in the nation, according to a new study by Kelly Cunningham, economist for the National University System Institute for Policy Research. The National Association of Home Builders measures the percentage of homes sold in a metro area that a median income household could afford.
For the second quarter of this year, ,San Diego ranks eighth worst with a 37.1 ratio. San Francisco is worst at 19.3. Only one of the ten worst-rated markets is outside of California (New York, fourth). The others in order are San Francisco, L.A., Orange County, Santa Cruz, San Jose, San Luis Obispo, San Diego, Salinas, and Napa.
San Diego's median household income at $72,300 is "somewhat better than middle," says Cunningham. SD's median income is 56th among metro areas, while median home prices at $400,000 are tied for twelfth.
San Diego's median income plateaued from 2009 through 2012 and then dropped 4.7% this year.
Cunningham blames strict growth controls and restrictive land use regulations for the big increase in the price of California homes.