SAN DIEGO NEW HOMES

“The strength of a nation lies within the homes of its people.” - Abraham Lincoln

  
We Don't Just Build.... We Build Community

Situation Analysis

Today, San Diego is the 6^th  most expensive place to live in the nation.  In September 2006, the cost of a new single-family home in San Diego County was $841,612.  The annual salary needed to afford this home would be triple San Diego's median household income of less than $60,000.   On average, during the decade of the 90s, local jurisdictions approved only about 7,000 permits each year, creating a housing shortfall that haunts San Diego today.  Since the mid 1990s,  most of the product produced has been single family/ detached homes.  But condos are making a comeback, outselling single family homes 2 to 1 or more recently. 

Critical to any discussion on “Smart Growth” is how we, as a society, will meet our region’s housing needs.  There is a movement afoot to build higher densities with the urban centers across the United States, primarily because of “NIMBYism”, restricted land availability and increased environmental protections.  However, even if local governments maximize densities in the urban cores of America, it is estimated that it would only accommodate 10% of the total housing need in the nation.  So where will the other 90% of those homes be located?

Meeting the Need

To meet the housing needs of our increasing population (1 million more in 20 years) and to sustain our economic strength, SANDAG has called for 18,000 new homes each year.  Only once in a 15-year span did we meet this projected need. It was 2003.  

New Homes Permitted Over the Years

                                         SFU                MFU               Total

Housing Challenges

A public contradiction: In February 1998, 21 community planning groups representing the unincorporated areas of San Diego were asked how they plan to accommodate increased population.  Ironically, the recommended densities for these communities were lower than what is currently allowed.  This push to limit neighborhood densities contradicts the national movement to “build up, not out” in existing neighborhoods. If Smart Growth is to be successful, there must be a strategy to deal with NIMBYism.

                Government regulations

Layers of excessive and unnecessary regulation imposed by all levels of government - federal, state and local - can add 20 to 35 percent, or up to one hundred thousand dollars, to the cost of a new home.  This makes it more difficult or impossible for families to achieve home ownership.

San Diego Housing Page 2

                Permitting & Approval Process

In home building, as in any other business, time is money.  74% of those surveyed recently by the National Association of Home Builders reported that the amount of time for routine zoning and subdivision approvals for a single family project increased significantly since 1984.

                Rising Fees

In San Diego County alone, since 1989, development fees have generated more revenue than it  received in  local sales tax.  Furthermore, in highly regulated areas such as San Diego, fees can add anywhere from $21,000 to $50,000 to the price of a new home.

                Land Availability/Cost

The amount of developable land in San Diego is limited.  The amount that is available often comes with demographic, environmental or regulatory barriers that hinder housing production or substantially increase the cost of the land.

                Environmental Regulations

Unfortunately, environmental regulations, in particular, often have the unintended consequence of making homes less affordable. Each of us recognizes the unique beauty of San Diego's environment and the quality of life it affords.  However, the myriad of regulations protecting hillsides, canyons, questionable wetlands, species and their habitat can have the cumulative effect of severely constraining the availability and affordability of housing.

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September 2006