SAN DIEGO — America’s Finest City tops the list for having the nation’s most unaffordable housing market, according to a new report.
It doesn’t mean we have the most expensive homes, though.
San Diego beat out San Francisco in terms of being the least affordable city to buy a home. That’s because San Diego wages have not caught up with skyrocketing housing prices.
“People who are buying houses, if you’re a family, it’s very challenging right now,” realtor Jesse Zagorsky told FOX 5 Friday. “We had a client representing, writing an offer — they were competing against 21 other offers.”
The OJO Labs report released Feb. 3 found San Diego’s median home price jumped more than 14% over the past year to a whopping $764,000 price tag.
San Francisco has the highest home prices with a median home price of more than one million dollars. But San Francisco’s median price actually fell 4.2% over the last year.
“What’s happening is we’re lagging in terms of income,” Alan Gin, an economics professor at University of San Diego, told FOX 5.
When you compare wages, the median household income in San Diego was just over $79,000 in 2019, according to the U.S. Census Bureau.
But the median income in San Francisco was just over $112,000.
“And everything started breaking down back two years ago, and our whole supply chain just hasn’t opened up again,” Zagorsky said. “Our limited inventory, the amount of houses that people have to choose from is so dramatically lower than what is in a normal market and lower than what we have ever had historically in San Diego period. So that’s what’s causing this incredible appreciation. There’s no houses for people to choose from.”
San Diego also has some of the highest rent prices, gas prices and electricity rates in the country.
“I’m really concerned for people at the lower end of the income distribution,” Gin said. “Their rents are going up and they’re being priced out of the market.”
Other least affordable cities that made the list include Los Angeles, Mobile, Alabama, Pensacola, Florida and Boise, Idaho.