San Diego Is Now The Least Affordable City In California

A recent study claims that San Diego has become the least affordable city in the state. As home prices continue to rise in the area, the city has bypassed Los Angeles and San Francisco based on people's income and the price of single-family homes.

The study conducted by OJO Labs determined that home prices in San Diego jumped 14.3% in the last year. As of January, the median home price was $764,000.

According to CBS8, local real estate experts say San Diego is in a "perfect storm." Inventory is lower than ever, which drives up prices and people aren't making enough money to buy a home. The average income in San Diego is just over $68,000, which isn't enough to buy an average-priced home.

“The main factor I think, is incredibly low inventory which was caused by the pandemic,” Matt Battiata, of Battiata Real Estate Group told CBS8.

More remote workers and people choosing to not sell is also contributing to the housing crisis. "We’ve had a big surge of people moving here from basically the whole West Coast. Seattle, Portland, the whole San Francisco Bay area, L.A. and Orange County. Those people make a lot more money than most people here in San Diego,” said Battiata. 

Because San Diego is a desirable place to live, experts like Battiata say they don't know when or if the market will shift for buyers.