San Diego’s housing crisis – statistics and quotes

Interesting article from San Diego Housing Commission. They include many shocking and absurd stats:

Increasing housing prices vs. incomes in San Diego:

To afford a median-priced house ($550,000) today in San Diego, buyers need an annual income of about $134,000, assuming a 10 percent down payment and a 30-year fixed-rate financing at current interest rates. But according to the San Diego Association of Governments the county’s median household income is $64,273 – less than half of what is needed to afford a median-priced home here. (The Daily Transcript/MarketPointe Realty Advisors, 2/15/06)

The San Diego Association of Governments estimates that 172,000 local employees, or 13 percent of the work force, earn less than $8.35 an hour.

San Diego County’s high housing prices, coupled with its relatively low wages, make it the third least affordable major metropolitan area in the country. (National Association of Home Builders, 2006)

The median price for existing houses for December 2005 was $550,000(San Diego Union Tribune/Data Quick Information Systems, 1/22/06) – as compared to a national median price of $211,000. (National Association of Realtors, 2/28/06)

The average new detached home in San Diego County sells for $861,759 – a 350 percent increase over 1996 ($245,884). (The Daily Transcript/MarketPointe Realty 2/15/06)

Meanwhile, in the past six years the median household income in San Diego increased only 21 percent for a family of four. (San Diego Union Tribune, 7/10/05)

According to the Federal Bureau of Labor Statistics, in the past year, San Diego lost 15 percent of its manufacturing jobs (which are typically higher wage than retail and hospitality jobs). (San Diego Business Journal, 6/27/05)

According to the California Employment Development Department, some of the largest increases in employment over the past year have been in the leisure, hospitality and food service industry. And according to Center for Policy Initiatives, the median hourly wage of such service workers is $8.50. (The Daily Transcript, 2/15/06)

A 2006 report from America’s Second Harvest, a national organization of emergency food providers, found that 35 percent of its clients seeking aid must often choose between paying for food and rent. In addition, 42 percent reported having to choose between food and household utilities and 32 percent had to choose between food and medical costs.

With all these statistics how can anyone think there is no housing bubble?