San Diego Housing Crisis

From the San Diego Building Industry Association:

Housing You Truly Matters, if the following stats are taken into consideration:

• From 1980 – 2010, a total of 464,441 Residential Building Permits were issued in our San Diego Region, an average of 14,982 per year. The data period covers 31 years.

• Since 2011 through 2016 (6 years), 46,804 permits were pulled, or an average of 7,801 permits per year. Year 2017 (incomplete) declining activity would pull that average further down.

• Contrast 1980 – 2010 data at an 14,982 average annual activity with our modern era activity with its average of 7,801 permits. It yields a precipitous drop of 48%. Since we have every reason to expect 2017 to finish well below the immediate past two years (2015: 10,048 and 2016: 10,072), the true drop will be exactly 50%.

Pick a different period, run the stats post or pre-Recession, it doesn’t matter nor will it change the conclusion. San Diego is producing only one-half of the amount of housing “it used to provide” even though its population has expanded without interruption. San Diego’s housing supply crisis is perfectly evidenced by these staggering figures.

McKinsey Global told us that we need to produce the same amount of housing we used to produce. The obvious answer is to deregulate housing production, an effort which must be led locally to benefit our locals. Sacramento cannot help us. Only modest, no-cost-dropping reforms were recently adopted by the controlling Party, amidst a well-advertised albeit painful housing cost crisis.

I believe it was important to share these figures to underscore how hard we must all work to right this ship for the good of all.

Borre Winckel
President & C.E.O.