Why is SD Expensive? (house prices, homebuyer, property tax rates)

[NYSD1995]

San Diego is California's primary resort city and as such has a large number of low-paying service jobs. Remember traditionally San Diego had no manufacturing base to speak of and was a navy town. That small-town quality arguably contributes to SD's high housing costs as it is a more attractive city than say, LA due to it's lack of industrial and large-scale commercial districts. However it is a double-edged sword as that infrastructure supplies much-needed middle-class jobs which San Diego is well-known as lacking.

The housing costs in SD are high but is actually lower than other CA cities like SF or LA. The difference is in pay. San Diego pays like a small midwestern city which makes the housing costs that much harder to bear. The real problem is when you get to the 100k+ mark and the job market thins out considerably.

[TristramShandy]

Originally Posted by ndfmnlf

If housing is the biggest contributor to high cost of living in CA, how come there are many long time residents who have owned their homes for more than 10 years who still complain about how expensive the state is and are planning to move out? There are numerous posts on this forum from these people.

I think many of these people don't realize how much they'll get paid in other states. My wife and I moved out here in 2005. We make about $50K more in California than we did in Rhode Island without getting any promotions, extra education, etc. I work a little more than I did back there, but I also get paid 35% more for the work I do out here. Houses cost more in California, but the difference in pay allowed us to buy out here when we couldn't back there. Somebody who has lived in CA for a long time might be in shock about what they'll be paid if they move elsewhere.

[MisterMark]

Tristram Shandy, I don't think the numbers are there to substantiate your argument.

From the Census Bureau's FactFinder website, using your example of Rhode Island:

In 2006:

San Diego County
Median household income: $59,591
Median home value: $572,000 (9.6 times income)

Providence County, RI
Median household income: $46,098
Median home value: $273,700 (5.9 times income)

[TristramShandy]

Originally Posted by MisterMark

Tristram Shandy, I don't think the numbers are there to substantiate your argument.

From the Census Bureau's FactFinder website, using your example of Rhode Island:

In 2006:

San Diego County
Median household income: $59,591
Median home value: $572,000 (9.6 times income)

Providence County, RI
Median household income: $46,098
Median home value: $273,700 (5.9 times income)

Those two years make a hell of a difference though - - prices of housing in the Northeast have remained steady (going up in some places) while the housing bubble has burst out here. We bought our house this year. Our house was sold for over $500,000 in 2005, and we bought it for $315,000 this year.

It could be based on our professions (higher education and secondary education) and may not be the same in other fields, however. We made less than the median household income for Rhode Island but are now significantly over it here. The same might very well not be true for sales jobs, engineering, etc.

[MisterMark]

Originally Posted by TristramShandy

Those two years make a hell of a difference though.

Oh, I know, and I agree with you on that.

I won't push the argument too hard (don't want to be obnoxious about it!), but even if you look back at a pre-bubble year (1999), the median home price in San Diego was about 5 times the annual income; in Providence, it was about 3.5 times the annual income.

[NYSD1995]

Originally Posted by TristramShandy

It could be based on our professions (higher education and secondary education) and may not be the same in other fields, however. We made less than the median household income for Rhode Island but are now significantly over it here. The same might very well not be true for sales jobs, engineering, etc.

Education actually pays pretty poorly in CA (SD especially) compared to NY/CT/NJ. But for what I do (software, web, etc..) unless you are working in SF, LA, DC, NYC, etc... everywhere pays pretty much the same. In San Diego there are companies offering senior software devs 75k, that's pretty much the salary you would expect in someplace like Columbus OH where houses cost 150k. Atlanta, Dallas, Denver the same job will pay 100k.

[page3000]

Yeah it kind of sucks. I only want to move from NYC back to SD b/c that's where my mommy and daddy are lol. But it's not fair. They got in when their house was 250k....in 1994..even right now, during the downfall, it's still worth 700k. Sucks to be the newer generation.

[TristramShandy]

Originally Posted by Sassberto

Education actually pays pretty poorly in CA (SD especially) compared to NY/CT/NJ. But for what I do (software, web, etc..) unless you are working in SF, LA, DC, NYC, etc... everywhere pays pretty much the same. In San Diego there are companies offering senior software devs 75k, that's pretty much the salary you would expect in someplace like Columbus OH where houses cost 150k. Atlanta, Dallas, Denver the same job will pay 100k.

Well that sucks. But I still disagree with college education. Once again just Rhode Island compared to California, SDSU pays significantly more than the University of Rhode Island does (or at least did). The same is true for USD compared to Roger Williams University (private law school in RI). But it's looking like my profession is in the minority.

[NYSD1995]

Originally Posted by TristramShandy

Well that sucks. But I still disagree with college education. Once again just Rhode Island compared to California, SDSU pays significantly more than the University of Rhode Island does (or at least did). The same is true for USD compared to Roger Williams University (private law school in RI). But it's looking like my profession is in the minority.

I am speaking of elementary / secondary. We have looked into it, my wife would be making 30-50% more in most Northeastern cities as opposed to here. NYC even offers a stipend / moving expense / signing bonus for teachers working in NYC public schools.

[esmith143]

Originally Posted by EscapeCalifornia

Its a state where you get to pay 9% income tax, $6000/yr property tax, $400/yr car tax, 7-9% sales tax, $0.04 extra on every beverage container, and a million other hidden taxes that show themselves through higher costs for everything.

California has very low property tax rates, and they only appear significant to new homebuyers because house prices are so high. More importantly, tax collections are crippled through prop 13, long-time homeowners pay so little in property taxes, it's ridiculous. You may be paying $6000/yr, but your contributions are offset by 5 of your neighbors paying $600/year each for identical houses. So the state has to come up with other sources for the money. The system is more anti-new-resident than anti-wealth.