Yes In My Backyard or Not In My Backyard?
Yimby or Nimby: Which one are you?
Currently, San Diego needs about 100k homes for our ever growing community. We have about 30k planned, which is clearly 70k short of what we NEED now. Some people are building Accessory Dwelling Units (ADU’s) on their property. Though, instead of renting them to full time locals, they are short term rentals. Short term rentals provide, at minimum, double the income long term tenants are willing to pay. Soon the city of San Diego will reduce the cost to permit ADU’s, reduce restrictions and hopefully provide other ways to make them cost effective to build.
The question remains, what is San Diego doing about the 70k house shortage? At this point in time, nothing. In my opinion the city of San Diego started the problem by allowing new home developers to skip out on providing affordable housing in their developments. They allowed the developers to pay a fee in lieu of building affordable housing. Now, years later, that decision by the city is coming back to haunt us. Eventually, the developers will price themselves out of San Diego and move on…or should I say move back…to Nevada, Arizona, etc., like they did before the ‘Great Recession’.
Wow! Who knew San Diego was already turning into Ireland?
In Ireland if you own a home with a yard you’re guilted into moving once you age. They are saying ‘you’ve lived here long enough, now give some younger person a chance to live there and raise their family’.
Seriously, that is happening right now in Ireland and from what I’ve been reading it seems to be starting here in our own humble city of San Diego, CA.
Read about it here.
It’s official, in national news today Kenneth Harney from the Washington Post reported a study that says “millennials are not buying (homes) because old folks not selling to downsize.” Remember, you read it first from me back in January 2017.
To bring the information down to a local level. I personally make it a point to go out an meet my neighbors. My goal this year is to meet 1000 of them and every year after that until I’ve met all 8500…then to start over again. As a realtor, it’s good for business. More to the point, I meet someone every time I go out that says they aren’t moving, their home is paid for (it’s always a single story home with a manageable sized yard) and they are perfectly happy where they are. God bless them, I wish everyone could say this.
There is an ever growing number of people whose goal it is to pay off their house and they are doing it. What a huge accomplishment. My hair stylist told me she had 2 payments left and she would be mortgage free. Her dad just passed and now she has two homes that are debt free. I sold her that house less than 15 years ago, do you know how proud of her I am? It’s amazing. Mostly because I see my other clients continually selling and moving to a bigger, more expensive home every time they get a raise or their equity reaches new heights. It’s good for business, yet, at the same time I know that it’s going to be 15-30 years before that home will be paid off. If they are 45 now that means they’ll be 60-75 when they are finally debt free. As their advisor, I let them know all of their options and remind them that this could be their final home…I’m sure most of them do what they want to to do regardless of my well intended words of wisdom.
To bring this to my point. If they live in their homes until they are paid off at the earliest age of 60 (barring winning the lotto); are millennials going to go knocking on their door telling them it’s time for them to move so they can have a chance to live in a house with a yard? They just paid off their home, they can finally live debt free in their golden years in a home that they’ve shared decades of memories raising their families….they’ll probably be another acronym coming along in 2030 describing both sides. Until then
Call me or send me an email, I’ll be happy to help you sell your home when you are ready.
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