July 15, 2016
For several years our region’s leaders have researched, discussed and debated the shortage of available housing for the growing population. A new study released by the San Diego Regional Chamber of Commerce and authored by Gary London of The London Group finds that the shortage has become an impending economic crisis as well.
The housing crisis has already caused decreased housing affordability, longer commutes, greater congestion, and increasing employee and employer dissatisfaction. In this new study it is noted that the apparent inability to reconcile housing supply and demand is likely to fuel an unprecedented economic challenge for the region, as employers are weighed down by the plight of their employees who are unable to find or afford their preferred housing type.
The study finds that the region’s planners have effectively embarked on a 38-year experiment. They are essentially “betting” that the growth in our workforce and their families will be overwhelmingly willing to be accommodated with a new supply of multifamily housing, while there is a virtual elimination of new single-family housing projects. Losing this bet would mean irreversible consequences. In fact, the report details compelling reasons that suggest this supposition regarding housing preferences and willingness to live in multifamily housing is incorrect.
Without substantial action to correct the region’s housing crisis, the shortage will worsen well into the foreseeable future. The result will be a continuation of higher housing costs, both for-sale and rental, fostered by an inability to bring to market new housing units of any type. A lack of action will lead to demand perpetually outpacing supply. The housing shortage is a regional problem that impacts everyone.
For the full study, click here.