San Diego residents are losing power to buy a home
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San Diego residents' homebuying power has seen one of the largest declines among major U.S. cities in the past half century, according to an Axios analysis of a RealtyHop study.
Why it matters: In San Diego's expensive housing market, buying a house isn't as easy today as for previous generations.
Zoom in: Homebuying power is the ratio of annual income versus the average house price in 1970 (when baby boomers started buying starter homes) compared to 2022.
- In the San Diego metro area, it decreased nearly 70% from 1970 to 2022.
- San Diego ranks 15th nationally and ninth in California on this measure.
By the numbers: In 1970, a house in San Diego County was $22,500 and the median family income was $10,166.
- In 2022, a house was $783,300 and the median family income was $115,908.
- At the end of May, the average San Diego home value was more than $1 million, up 12% over the past year, according to Zillow.
The big picture: The nation's largest affordability gaps are along the West Coast, with the five least affordable cities in California.
- Meanwhile, the Midwest has remained the most affordable region for homebuyers.
- Of the 117 cities included in the study, Detroit is the only one where buying is easier today than 50 years ago.
Reality check: Mortgage rates were in the double digits in the 1970s and 80s. They're now hovering around 7%.
The bottom line: Younger generations are spending a larger portion of their income on housing, whether buying or renting.