San Diego Real Estate Voice

San Diego Renters and Thier Benefactors

 

San Diego Renters and Thier Benefactors

 

The cost of renting in San Diego has now become a personal trap of preventing instead of facilitating future homeownership. For a majority of  people, renting used be a temporary condition where future homeowners would save up down payments to purchase their own homes.

Not so much now with rents far exceeding the typical monthly cost of homeownership. There is little opportunity to save for their own future home purchase. This also presents a conundrum of sorts for future growth and stability of the communities that make up San Diego.

Here we have some of the lowest interest rates in over a decade and so many would be first-time Buyers are now caught in the position of living pay check to pay check with little ability to save for a down payment. As real estate professionals, we know all too well that when the first levels of homeownership become stagnant or immobile, that it affects negatively on those that would like to be move up buyers. 

We have also seen where this condition ultimately has a negative effect on home values. Just the opposite is happening today with home values continually increasing because available housing supply has been greatly diminished and builders can not afford to provide the affordable housing so much needed today to fill the need. Land costs and building fees keep going up in direct relationship to the increasing home values caused by an unbalanced supply and demand.

While there are certainly lots of winners in the above scenario, most renters, and future homeowners are not among them. Their benefactor landlords are doing quite well, however. Fewer homes available to buy means more will be trapped the rent cycle in the years to come. And the ultimate issue is fast becoming that affordable rents have all but disappeared and more and more financial resources are required just to afford basic housing. 

I wish I had an answer but the situation seems to have a life all of its own. 

 

 

 

 

Click On Photo Below If You Enjoy My Blog

 Thank You !

http://activerain.com/social/subscribe/8657

 

 

Comment balloon 11 commentsWilliam Johnson • August 16 2016 02:22PM
San Diego Renters and Thier Benefactors
share
San Diego Renters and Thier Benefactors The cost of renting in San Diego has now become a personal trap of preventing instead of facilitating future homeownership. For a majority of people, renting used be a temporary condition where future… more
Why I love the Apple Watch
share
Why I love the Apple Watch Some claim it is superfluous and redundant technology and a royal pain to have to take it off to recharge the battery. I couldn't disagree more. I maybe got one with an exceptional battery but it charges up pretty fast,… more
Should Sellers Upgrade Their Kitchen and Baths Before Selling?
share
Should Sellers Upgrade Their Kitchen and Baths Before Selling? In considering what a number of Buyers expect to find in the homes they want to purchase in 2016, it is often discussed that if Sellers would upgrade their Kitchens and Baths, they would… more
San Diego's Water Park Shows Off New Sculpture
share
San Diego's Water Park Shows Off New Sculpture While attending the Festival of Sail on the Embarcadero yesterday, I visited the water park across the street from the San Diego Bay gathering of the tall ships. As I approached the park, something was… more
What's Important to Know About the San Diego Housing Markets
share
What's Important to Know About the San Diego Housing Markets San Diego Maritime Museum Tall Ship Parade Sept 3rd thru 7th, 2015 I think as consumers that much of your interest seems to be about what is happening to housing prices. We see reports… more
Can Staging a Home Actually Create Stress for the Sellers
share
Can Staging a Home Actually Create Stress for the Sellers This question came up in a conversation with one of my current Sellers. As it happens, I staged the property and it took on a beautiful model-esque type of appearance. And while that is… more
How to Fix a Poor Photo
share
How to Fix a Poor Photo Despite what some people believe, most photographers have lots and lots of poor photos resulting from incorrect settings, bad lighting or at least poor compensation for what is available. So what happens when we shoot things… more
Happy July 4th
share
Happy 4th of July If you are Buying Selling or Relocating to San Diego and need help from a professional REALTOR®, give me a call or visit my San Diego Real Estate website and sign up for Listing alerts for your favorite San DiegoHome… more
When Pigs Fly
share
When Pigs Fly If you are Buying Selling or Relocating to San Diego and need help from a professional REALTOR®, give me a call or visit my San Diego Real Estate website and sign up for Listing alerts for your favorite San DiegoHome and… more
The Lazy Days of Summer
share
The Lazy Days of Summer Officially, Summer is a week away but there is no telling that to this bird taking a siesta in the sun. With temps in the 80's and the sun blazing, this creature probably doesn't have a calendar to check on and if it feels… more