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San Diego needs nearly a quarter million new homes by 2028

Posted by The Aramco Group on Tue, Feb 20, 2018 @ 14:02 PM

The City of San Diego is currently facing a housing need that could be up to twice as high as previously estimated. This information is according to the San Diego Housing Commission's Production Objectives Report. According to the report, the rate of population growth in San Diego, approximately 1.2 percent per year, is more than double the rate of housing growth at 0.5 percent per year.

Should trends continue as they have over the past several years, San Diego is estimated to have a housing need between 150,000 to 220,000 units by 2028. This shortage of homes in the region has led to a housing market in which a reported 60 percent of San Diegans are unable to find an affordable home.

The Commission's report suggests that the housing troubles can have a financial impact on not just residents but the city's coffers as well in lost production, stagnant growth and environmental impact from the large number of commuters.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent while 15-year rates are near 3.875 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.