Why is it So Expensive to Live in California/San Diego?

April 22, 2021 0 Comments

Why is it so damn expensive to live in California?

Is it worth the cost to live in America's finest city?

So, just how expensive is it to measure in San Diego well compared to the nationwide average between 40 and 50 costlier to live in San Diego. But the reality is most of the expense is going to come from the housing which is over twice as expensive as the nationwide average. We're talking about the costs of living in san Diego you really have to start with the top so you have to start with the cost of living in California and the reasons why it's so expensive to live in California and truth be told two different factors. As far as living in California starting with the high cost associated with owning a business. So it's extremely documented California isn't a simple state to have a business and therefore the truth is that the extra regulations the challenges that business owners face that are going to directly relate to the cost of goods.

The cost of products goes to still go up and it makes everything a touch bit costlier here. And the second part of it is California as a whole doesn't build enough houses it hasn't been building enough houses over the last 10 15 years. To keep up with the number of people that are moving out here and there are many reasons why there's not enough housing. Going up but a number of the most reasons are that the method to create homes in California is dear difficult and time-consuming. Especially in major cities in urban areas where land is at the highest demand and when you break down as far as san Diego. Why it's so expensive to live here a big part of it comes to supply and demand very simple supply and demand.

There are a lot of people wanting to move here every single year. Every single year there are more people moving here than there are leaving so there need to be more places for those people to live and on the supply side. There are plenty of challenges associated with the number of new homes that are being built but also rentals and resale homes are.

They go up also when there are challenges with new construction and therefore the interesting thing about San Diego is it is a big city. It is the eighth-most populous city in all of us but it doesn't really feel like that at times. Downtown San Diego is extremely dense has high rises. There's a lot of housing during a small area but it is a pretty small area once you leave from there even little Italy which is a component of downtown. There are going to be condos and townhomes but it's not crazy dense and then going out from there to north park south park um mission valley uh in all these different areas.

It's getting to be more single-family homes townhomes condos but not the high-rises it isn't getting to be really dense everything's getting to be a touch bit more opened up . So it's kind of unique for a big city to be like that it also makes it challenging. When you're trying to build new construction that you don't really have a lot of space because if you can't go out and you aren't going up then what are you left with while we're talking about new construction in san Diego. The other challenges the land is so valuable that a lot of the developers that are coming out here are building a luxury town, luxury condos starting to make them denser and but the reality is a lot of people when they're moving to San Diego. They want that single-family home they want their space they want a backyard and you're getting less and less of that with the new construction that's coming in. So it's challenging because we need it to be denser so that we can have more homes built.

But we also want to still have that San Diego lifestyle so there's there must be a balance there and as supply stays low demand stays high home prices. keep going up and the reality is the higher the home prices go up the fewer people are actually moving out of their houses.