San Diego Housing & Gas Cost
San Diego Housing
Most people realize that living in San Diego or anywhere in California for that matter, is an expensive proposition.
Here in San Diego, I don’t think a year goes by that the water and sewer rates are not increased, electricity cost move up, if not the highest electricity cost in the nation has to be close to it. Oh, let’s not forget housing costs, San Diego housing is not the highest in the state, I think San Jose holds that distinction, but, compared to most parts of the country, San Diego homeowners pay a huge premium (in housing costs) for our magnificent weather.
Just the other day, the governor announced that he is proposing an increased sales tax, as well as increasing the income tax for all Californians. Yes, for all intensive purposes California’s bankrupt, but rather than cut the bloated workforce or propose bringing the extremely generous government pension costs in line with reality, it’s only new taxes and fees that are ever proposed.
Now, San Diego, and the entire nation are facing all time high gasoline prices. With an anemic economy these high gas prices are a definite drag on any possible recovery. Plus, I personally believe that they will put a damper on housing activity, especially in the outlying areas.
Just in case you thought everybody in the country was suffering from high gas prices, you may be shocked to you to know that San Diego and California residents pay one of the highest gas prices in the nation. This is because of extremist, wacko environmental rules and naturally, high per gallon state taxes.
I just returned from Quartzite Arizona which is right off Highway 10. Usually, gas prices off a major highway are more expensive than the stations in the cities. But, this photo shows what I found all along Highway 10 … Regular gas prices at $3.89 a gallon! On my return to San Diego, I took a picture of a local gas station’s sign, showing our price to be $4.45 per gallon! Yes, just crossing the Colorado River cost Californians $.56 additional per gallon of regular gas!
San Diego Housing
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Your post about San Diego housing cost and gas prices will surly not make people want to move here. I would think that as a broker you would want people to move to our beautiful city.
There is no doubt whatever that the high price of just is going to have a detrimental effect on any so-called recovery.
So, what’s all this have to do with the real estate markets and the consensus of opinion that they would be recovering in 2012? As Americans disposable income is vanishing, they will inevitably pull back on spending. When one is worried about job security, paying for enough gas for their daily commute and putting a decent meal on the table, they sure won’t be thinking about buying a new or move-up home.
Pretty insane. Just imagine what things will be like if The Big O (read zero) gets in for another term.
Paul
Bill:
Thanks for the comment. If no one speaks out about foolish government policies, how will they ever be corrected?
Back in 2005, I published a post entitled “A trend about to go national.” In this post, I stated that the conditions I saw in the San Diego real estate market look like a huge drop was eminent and this could spread throughout the country. At that time, many people wrote to me and commented similar to your comment today … How can I say anything negative about San Diego real estate? But, now in hindsight if just one person in 2005, held off purchasing and decided to rent until they could determine the market direction, they probably would not be like one fifth of the homeowners in San Diego … facing possible foreclosure.
For me, integrity is paramount and business is secondary.
Sincerely,
Bob Schwartz, Certified Residential Specialist
Real Estate Broker – Realtor
My 3 decades. experience -Insures YOU the best possible Deal!
So true, sad but true. If things continue in this direction, property prices will continue to decline as people will be just trying to stay employed, keep gas in thier cars to get to work and pay their taxes. The vast majority will not be able to buy a home.