San Diego seems stuck in a cycle of perpetual housing shortages, which could be a good thing for owners and potential owners of multifamily housing.
“When I look at San Diego, it’s almost the ideal place to own apartments because of our limitation of supplied land and the antidevelopment mentality of most of the communities,” said Alan Nevin, a self-described “apartment junkie” for 45 years. “They’re anti anything, but apartments seem to be the magnet for community hate.”
Nevin was one of three panelists at Our City San Diego’s recent event focused on the outlook for multifamily housing in 2017.
San Diego is adding 30,000 more people per year due to natural household formation, and adding 25,000 more jobs per year, many of which are well paying. “That puts us in a slightly different category than most metro areas in the U.S., where most of the growth is in industries that don’t pay well,” Nevin said.
The region needs 12,000 to 15,000 new housing units added each year to accommodate this growth due to new employees and new population.
From 1996 to 2006, San Diego was keeping up with the supply to meet the demand.
But since then, the region has produced half the necessary units.
For the first time in a decade, the county is seeing shovel-ready dirt ready for development.
But, it’s all in Otay Ranch.
“It’s unfortunate that most of the job generation is to the north, and most of the new housing is to the south,” Nevin said.