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.”
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
7. Los Angeles
8. San Diego
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.
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.
10 News San Diego