Recently the San Diego Union Tribune reported that while the cost of housing was rebounding, with it the affordability of real estate was returning, making it difficult for middle class families to purchase a home. This situation has interesting affects throughout San Diego County and is something that real estate investors should be aware of in the upcoming months of 2014.
Because of the apparent housing shortage, the Union-Tribune posts, “Middle-class families, tired of spending half their paychecks on housing, are fleeing the state faster than others arrive.” This appears to be unsubstantiated, though, looking at the unemployment numbers in the county: Unemployment has fallen from a high of 8.3 in November of 2012 to 7.1 in October 2013 and 6.8 in November of 2013. The average for California as a state was 8.3 in November of 2013, which puts San Diego County 1.2 points below the state average.
At Rent RPM we believe that the “affordability problem”, as the Union-Tribune calls it, means that there is more opportunity for real estate investors to purchase singe family and multi-family units for middle class families earning income to save for a home. Looking over the data from the last quarter it becomes evident that the real estate market in San Diego County is moving toward stasis, with regular tax of 2% annually, as has been the norm since 1978, interest rates flattening, and real estate prices flattening.
With that in mind, now is the ideal time for real estate investors to capitalize upon the market in San Diego. With the county unemployment lower than the state, and being on par with the national average, San Diego is one of the best places for families to find work and employment opportunities and will need housing options while transitioning from moving into a permanent residence in the county.
At Rent RPM we are San Diego County real property management experts and professionals. We watch the real estate market closely, work together with our clients to ensure that their properties are filled and do not remain vacant, while helping people find places to live. We know the area, the market, and the people, and we look forward to serving both property owners and tenants alike.