Will rent ever decrease in San Diego? What kind of scenarios will drive this? What's the possibility? (Johannesburg: real estate market, condo)

[metoque]

Alien invasion because they will likely over-build for their own kind.

[NYSD1995]

San Diego Millennials Least Likely to Pursue Home Ownership | San Diego Business Journal



San Diego millennials are some of the least likely in the country to pursue home ownership, according to data released Thursday by LendingTree.

The online lender analyzed mortgage requests over the past year and found 36.9 percent of requests came from those under 35, the fifth-lowest out of the largest 59 cities in the country.

That comes as others have shown San Diego has one of the largest millennial populations in the country by percentage. A report from JLL Research earlier this month said San Diego had the second-largest millennial population in the U.S. but had a high millennial unemployment rate.

San Diego also had some of the highest average mortgage amounts for millennials, ranking fourth at about $365,000.

[sdlife619]

And this was just reported by the UT.

Rent increases nearly 3% in last 12 months | SanDiegoUnionTribune.com


Bad news all around not only for young millennials, but everybody in between. I think a lot of people would move out of SD if they had the chance, and were able too if they could, but I know many people here that are stuck in a situation where there family keeps them here, or their job, or even the inability to afford to pack up and go.

It is very difficult to move, especially out of state and into a city that you're unfamiliar with. If California didn't have the Pacific ocean to the west of us, you would have millions of people already leaving town. The jobs here simply don't support the increase in rents and home prices. Wages are stagnant, or barely going up, you basically have to fight tooth and nail these days with your employer in order to get a decent raise and even then, it's still not enough to afford SD real estate. Yet the prices for housing keeps skyrocketing upwards to unrealistic levels.

It takes 2 incomes to make it by, and if you have you kids, the struggle is real and lifelong in SD.

[1AngryTaxPayer]

It's not bad news for home owners that are renting.

[sdlife619]

Originally Posted by 1AngryTaxPayer

It's not bad news for home owners that are renting.

Well of course not..but most of the people that are current homeowners tend to be older and bought their homes when SD was still very cheap and affordable and they are very lucky to be in this situation today. But for first time homebuyers, young families, and future generations, SD is not a place that they are able to afford or will be able to afford any time soon. This is why most of Socal will be a place for only the Upper Middle Class/Very Poor, as the upper class will have even more control of property that basically removes any chance for even a Middle Class family an opportunity at homeownership. This is bad economically like I've stated. You need the merry go round to ride smoothly without cracks and seams in it in order for everything to be in balance, SD has been way out of balance for years now and it has gotten worse. Companies still need the working class to fill positions at Walmart, Burger King, Movie Theaters, Grocery Stores etc...I really don't know what part of SD all these people are going to end of living, but HUD better start converting more luxury condo's into section 8 housing or do something drastic since this is becoming ridiculous at this point with the increase in rents.

I forgot the statistics as of late, but the majority of the low to middle range houses that are being sold in the U.S., and right here in SD, are bought up mostly by investors that fix up the property really quickly, and rent them out instead of just reselling. This is another reason why affordable homes are off the market. Homeownership is being stolen from underneath prospective buyers by outbidding investors that have endless amounts of cash on hand, the game is unevenly matched. If new laws can be somehow implemented to restrict or limit investors from buying so many properties at any given time in a 6 month period in order to slow down the investor boom in the housing market, hopefully it will give people a chance at homeownership so the game can be closely matched.

[the topper]

No but does slow down every 5 years

[DevInTheSouth]

Originally Posted by sdlife619

And this was just reported by the UT.

Rent increases nearly 3% in last 12 months | SanDiegoUnionTribune.com


Bad news all around not only for young millennials, but everybody in between. I think a lot of people would move out of SD if they had the chance, and were able too if they could, but I know many people here that are stuck in a situation where there family keeps them here, or their job, or even the inability to afford to pack up and go.

Is 3% rent increase that bad ? It is basically tracking inflation

It is very difficult to move, especially out of state and into a city that you're unfamiliar with. If California didn't have the Pacific ocean to the west of us, you would have millions of people already leaving town. The jobs here simply don't support the increase in rents and home prices. Wages are stagnant, or barely going up, you basically have to fight tooth and nail these days with your employer in order to get a decent raise and even then, it's still not enough to afford SD real estate. Yet the prices for housing keeps skyrocketing upwards to unrealistic levels.

It takes 2 incomes to make it by, and if you have you kids, the struggle is real and lifelong in SD.

If San Diego did not have the Pacific Ocean it would not be San Diego - there would not be the desire to live on the coast that pushes prices up.

[Red Chili]

[quote=DevInTheSouth;43493309]Is 3% rent increase that bad ? It is basically tracking inflation



If San Diego did not have the Pacific Ocean it would not be San Diego - there would not be the desire to live on the coast that pushes prices up.[/quote]


Exactly. The year round temperature is a huge draw too!

[tickyul]

Most housing/rental markets, in major cites, will keep going up and up for the foreseeable future. Supply and demand has something to do with it.....but a lot of it is government interference and manipulation in the housing and mortgage markets.

[1AngryTaxPayer]

Originally Posted by sdlife619

Well of course not..but most of the people that are current homeowners tend to be older and bought their homes when SD was still very cheap and affordable and they are very lucky to be in this situation today. But for first time homebuyers, young families, and future generations, SD is not a place that they are able to afford or will be able to afford any time soon. This is why most of Socal will be a place for only the Upper Middle Class/Very Poor, as the upper class will have even more control of property that basically removes any chance for even a Middle Class family an opportunity at homeownership. This is bad economically like I've stated. You need the merry go round to ride smoothly without cracks and seams in it in order for everything to be in balance, SD has been way out of balance for years now and it has gotten worse. Companies still need the working class to fill positions at Walmart, Burger King, Movie Theaters, Grocery Stores etc...I really don't know what part of SD all these people are going to end of living, but HUD better start converting more luxury condo's into section 8 housing or do something drastic since this is becoming ridiculous at this point with the increase in rents.

I forgot the statistics as of late, but the majority of the low to middle range houses that are being sold in the U.S., and right here in SD, are bought up mostly by investors that fix up the property really quickly, and rent them out instead of just reselling. This is another reason why affordable homes are off the market. Homeownership is being stolen from underneath prospective buyers by outbidding investors that have endless amounts of cash on hand, the game is unevenly matched. If new laws can be somehow implemented to restrict or limit investors from buying so many properties at any given time in a 6 month period in order to slow down the investor boom in the housing market, hopefully it will give people a chance at homeownership so the game can be closely matched.

Being born in SD really doesn't mean that you are entitled to a house here any more than anywhere else in the US. Nor does it mean renting. That is market force driven. As long as there are immigrants living 10 per house (or apt) and willing to do min wage jobs here the labor force is covered. There are an estimated 3 million illegal immigrants and their offspring living in CA. The time to complain about it was mostly 20 years ago. We deserve what we have now. I'm sorry but I planned accordingly.

People that figured it out and bought are not the problem. I'm not stating illegals are the issue. I'm stating that people willing to work for almost half what anyone else will are a dime a dozen here. We can't have it both ways.

I'm proof you can come from a poor household and make it here. Wait till the social engineers think min wage is 15 an hour here. There will be even fewer jobs. Good times and I'm out at that point.