SAN DIEGO (KGTV) -- There's a housing crisis in San Diego. That, according to a new Zillow report.
Across the country, there are 10 percent fewer homes on the market than one year ago. In San Diego, you can double that.
"Aging millennials and young families may be able to find more affordable new homes for sale this year, but they'll most likely be in further-flung suburbs with more grueling commutes to urban job centers," said Aaron Terrazas, a senior economist at Zillow.
According to Zillow, the housing shortage is worse in "some markets where home prices are rising the fastest."
Gina Biglionebought a condo downtown for $600,000 in 2013. She now has it on the market for as much as $829,000. But she's waiting until it sells before getting serious about any other properties.
"The inventory's so tight that I don't want to fall in love with something and then it'll get purchased out from under me," she said.
Zillow lists 14 cities where the housing shortage is at 'crisis levels.' Six of them are in California, including San Diego. Here's how they rank:
- 1. San Jose
- 2. San Francisco
- 5. Sacramento
- 7. Los Angeles
- 8. San Diego
- 11. Riverside
In San Diego the median home value increased 7.1 percent over the past year and is now at $565,000. Additionally, there are 20.2 percent fewer homes on the market than one year ago.
To make matters worse, many homes are selling for more than the asking price. According to Zillow, 32.1 percent of all homes sold in the San Diego metro area in 2017 went for more than the asking price.
"I have clients who are first-time homebuyers, we're getting bid out by cash inventors, I have people working with down-payment assistance programs, it's really challenging for them," said Branden Matlock, a realtor with the Condo Showroom in downtown San Diego.
Even if you aren't buying, the crisis will affect you because of the lack of supply and very high demand. It's driving up rent.
Right now the median rent is a whopping $2,546 per month - that's up 4.3 over last year.
In Mayor Faulconer's State of the City address, the Mayor talked about the housing situation. He spoke of a revamp of fees to encourage the building of smaller, less expensive homes.
The Mayor also talked about expanding housing density, which would help first-time buyers and the middle class.
Mark Goldman, a loan officer and real-estate lecturer at San Diego State University, said one way to get ahead of the competition is to get a pre-approval letter from a lender. That could make a loan application more attractive, even if a buyer doesn't have 20 percent down.
There are also low-down payment programs through the Federal Housing Administration, and loans through the VA don't require any cash down.
Looking to buy? The San Diego Housing Commission offers deferred loans, homeownership grants, and mortgage credit certificates to help low and moderate-income families buy their first homes.
Helpful links:
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FAQs
San Diego is at the forefront of California's affordable housing crisis, and California is at the forefront of a national housing shortage—US Census Bureau data shows that, countrywide, the home vacancy rate is at 0.8 percent, less than half of what it was a few years ago.
Is there a housing crisis in CA? ›
The chronic shortage drives up housing costs, which are the major factors in California's having the nation's highest level of poverty, according to Census Bureau calculations that include living costs, and contributes to homelessness.
What is the average condo price in San Diego? ›
What was the average price per square foot for a downtown San Diego condo in 2022? The average price per square foot for a downtown San Diego condo in 2022 was $786 with the average selling price being $901,525.
How to buy a house in San Diego? ›
Buying a House in San Diego
- Get pre-approved for a mortgage.
- Work with a buyer's agent.
- Use commission rebates to save.
- Prepare an effective budget.
- Choose the right neighborhood.
- Conduct thorough due diligence.
Unsurprisingly, the nation's two largest cities — New York and Los Angeles — have the largest estimated overall housing shortages at roughly 390,000 and 337,000, respectively. Between 2021 and 2022, New York City's housing shortage increased by more than 3.5%, according to Zillow.
Are San Diego home prices dropping? ›
The median price of an existing single-family home in San Diego County in December was $911,500, down from $952,000 in November but higher than the $850,000 in December 2022.
Is there a housing crisis in California in 2024? ›
California's housing crisis has reached a critical point in 2024, affecting millions of residents and posing significant challenges to economic stability and quality of life. With median home prices soaring above $800,000 and rental rates skyrocketing, many Californians struggle to find affordable housing.
Will there be a housing crash in ca? ›
Not for the next few years. California's housing market will not crash in 2024. Despite 2023's skyrocketing interest payments and soaring home prices, Texans have managed to keep the market afloat.
How to solve the California housing crisis? ›
Exploring New Methods for Constructing and Producing Homes
One potential solution to rising construction costs is exploring industrialized construction methods, including modular construction, panelized construction and 3D printing.
What is the average HOA fee in San Diego? ›
The average HOA fee for a condo in San Diego is $327/ month...
Analysis shows the median sale price for homes in San Diego has seen a notable increase. Median Sale Price: $925,000 as of January 2024, indicating a resilient market trajectory. Year-Over-Year Gain: Approximately 12.1%, reflecting sustained growth.
Where is the most expensive place to live in San Diego? ›
The most expensive neighborhood in San Diego is Rancho Santa Fe or Fairbanks Ranch, according to Michan. These communities have also been rated as some of the most expensive ZIP codes in the country.
What salary do I need to buy a house in San Diego? ›
SAN DIEGO (FOX 5/KUSI) – There are seven metropolitan areas in the U.S. where a household must make at least $200,000 to comfortably afford buying a home, and San Diego is in the top four. According to a recent study by Zillow, people looking to buy a home in San Diego need to have an income of at least $273,613.
What is the minimum down payment for a house in San Diego? ›
To qualify, the buyer must obtain a fixed-rate first trust deed loan; have adequate income, a good credit rating; and provide a minimum down payment of 1 percent, and maximum down payment of 20 percent. Applicants also must attend a homebuyer education class and pre-purchase counseling.
What qualifies as affordable housing in San Diego? ›
The San Diego Redevelopment Agency is committed to addressing this issue and fulfilling this mission. WHAT IS AFFORDABLE HOUSING? The Redevelopment Agency defines affordable housing as housing plus utilities that costs no more than 30 percent of a household's income.
Why has rent gone up so much in San Diego? ›
Limited Housing Supply
With supply constrained, any increase in demand translates into higher rents. Between 2010 and 2020, San Diego saw its population grow by about 10% while net new housing units increased less than 7%, according to census data. That supply-demand imbalance puts upward pressure on prices.
Is there a homeless crisis in San Diego? ›
In 2023, the count found 10,264 individuals experiencing homelessness across the region -- an increase of 14% over the previous year. That number included 5,171 unsheltered San Diegans with 5,093 individuals in shelters and transitional housing.
How many homes are vacant in San Diego? ›
The loan website said 6 percent of homes in the San Diego metropolitan area — which includes all of San Diego County — are vacant. In terms of raw numbers, that is 74,936 homes. San Diego is ranked No. 36 out of the 50 biggest metros.
How long are houses staying on the market in San Diego? ›
On average, homes in San Diego sell after 14 days on the market compared to 11 days last year.
