San Diego Wins Housing Sweepstakes

We’re Number 1! We’re number 1!
 
1. San Diego

 Median home price: $601,800
 P/E: 5th highest
 Affordability rank: 2nd least affordable
 Housing price trend: -4.5%

[via Forbes]

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Comments

  1. John K says:

    Most Overpriced:
    San Diego, Miami, Sacramento, San Francisco, Wash DC, Honolulu, New York, Boston, San Jose, etc.
    Correllation with the BEST places to live in the US has to be about 0.9.
    The best cities are expensive, and maybe over-priced. That’s partially because rich people, both in the US and from abroad like to live in these places.

  2. Nice point, John. The same thought crossed my mind, and so I’m glad you made it.

  3. Eric E says:

    That quality-of-life theory doesn’t explain Sacramento, DC and San Jose. Industry makes sense for DC and SJ. But not Sacto…

  4. Matt says:

    Sacto is the speculator’s outlier – full of Bay Area transplants and/or Central Valley transplants looking to buy more house than they need.
    The new home buyer in Sacramento is a very different profile than the quality-of-life buyer of 10-15 years ago.

  5. Andi says:

    >>> rich people, both in the US and from abroad like to live in these places.
    Consider the “rich multiplier effect,” they like to own, speculate on, and maintain homes in these places–where do they actually live? Maybe on their Gulfstreams…

  6. brian says:

    John and Paul,
    The theory that high prices are driven by rich folk is flawed because the top 5 percent income earners don’t on a per sq. ft. basis don’t account for much real estate. What I think has happen is that many middle class homeowners who bought in the 70s-to-90s are sitting on a nice appreciation, but they themselves cannot afford to buy their house today. When they move but live in the same housing market they just roll their capital “gains” into their new homes with the same lofty price tags.

  7. Andi says:

    >>> the top 5 percent income earners don’t on a per sq. ft. basis don’t account for much real estate.
    Perhaps true, but they skim the cream and prices flow down from there. The market is set by turnover in the top properties.