San Diego’s local economy was largely real estate driven in the early part of the century. The real estate bubble fueled an economy that fed real estate agents, mortgage brokers, and construction workers, and fed off itself. Capital came in from across the country and people spent the equity that accrued in the bubbly period.
But when that bubble burst, economist now say it through the local economy into a recession before the rest of the country. And with a higher cost of living it will be harder to come out of it. Add to that the high level of taxes paid in California, and you have a region that will stagnate longer than the rest of the country.
So the most beautiful city in the country makes no economic sense to live there. What a shame.
Most economists agree that San Diego’s economy started slowing earlier than the nation’s because of the effects of the housing bubble, which were felt earlier in Southern California than in most other parts of the nation.
The decline in housing prices led to unemployment among construction workers, mortgage brokers and real estate agents and cutbacks in sales at furniture and home improvement stores. Over the past year, the effects have spread through other sectors of the economy. via SignOnSanDiego.com
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Great Real Estate
post … very interesting.
I don't mean to be contradictory but the Southern California economy doesn't learn nearly as quickly as the federal government writes checks and as long as the economy there represents the 8th largest in the world I see bail outs that support the market being a far more likely scenario than allowing the total collapse that would actually be better in the long run but WAY to painful in the short term. BTW San Diego is my dream destination location as the people there are both industrious and inventive.
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