Cost of Living Crisis in San Diego

San Diego is well known for its high cost of living. Prices for housing, energy, and even child care make San Diego one of the most expensive places to live.

Housing is one of the biggest factors impacting San Diego's cost of living crisis. The average price of a single-family home in San Diego is ~$1 million, with home prices rising the fastest in the country. There has been a 37% increase in home prices since 2020. The median home price is around $802,000. Additionally, average monthly rent is up 24% since 2020, leaving many San Diegans struggling to afford rent and facing steep competition for fewer available units.

One solution to the housing crisis is to build more housing, However, San Diego is not keeping up with demand. In the 1970s, around 15,000 new homes were built annually in San Diego, but in recent years, that number has dropped to approximately 5,000. While San Diego's population has grown from 700,000 to over 1.4 million people, not enough housing has been built to match the growing population. This imbalance left many San Diegans struggling to find affordable housing, with many living unsheltered or facing excessive rents and unaffordable home ownership.

What efforts are underway to make San Diego more affordable?

San Diego Mayor Todd Gloria recognizes the need to build more housing and has launched several initiatives to help address the crisis. One such effort is the "Plus-One" program, which aims to incentivize the construction of an additional unit to help increase the housing supply.

Another initiative is the "House San Diego" program, which focuses on streamlining the construction of affordable and middle-income housing. The program helps eligible developers fast-track their projects and reduce costs through incentives such as fee waivers and reduced parking requirements.

Gloria recognizes that these initiatives are just the start and that more work needs to be done to address the housing shortage and make San Diego more affordable for all residents. Nonetheless, these efforts represent important steps in tackling San Diego's cost of living crisis.

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