Here are a few tidbits of information about San Diego County:
1. We are still experiencing more inflow than outflow with regard to our population.
2. The construction of new residential units compared to the numbers of people moving to San Diego has dropped sharply in the last decade.
In the early 2000's New Construction Residential Units to individuals was on average about 2.5 new residents to every 1 new unit. In 2010, the ratio went to 8.5 people to every new unit. Russ Valone of Market Pointe has the opinion that we could see 10 to 1 in 2011.
3. Gas is more expensive than ever before, creating a stronger demand for urban addresses.
4. Currently 110k units are in the entitlement process in the central San Diego area. Meaning, we could see 110,000 more residential units over the next five years. At issue, only 35,000 of these yet approved developments are single family residences.
5. There is a proposed moratorium on building and development in the Unincorporated San Diego area.
6. More than likely, new construction won't be healthy until competition from distressed product is absorbed and this, in turn, will breathe life into the ability to construct and sell with profit.
7. Mortgage Interest rates are still near historic lows.
8. Baby Boomers have commanded the largest cross-section of our society. Their children are about to step into the adult world and their numbers are bigger than ever. So, a). baby boomers will be buying second homes, vacation homes, and downsizing. b). Their children will be buying homes and wanting them in urban areas.
Life is good for San Diego and Real Estate, now and the future-a vacation and destination area.
Dirt in San Diego has never been more precious than now and the near future. The inner urban central areas of San Diego County will be built out and maximized over the next two decades. Single Family Homes (most especially single story Homes) will become jewels in the residential crown. However, back to the point of this statement of opinion, if you own land that allows development of multiple units, you may be securing the financial nest egg for your golden years. If you don't own buildable land it may be time to think of the value of land today versus the value of land in 10 or 20 years. This can come in the form of land with homes currently on them that allows for the construction of more units. Food for Thought!
Shane Pliskin
Branch Manager, Mission Hills
Prudential California Realty
Affiliate of Berkshire Hathaway
619-299-8020
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