San Diego Home Price Ranking In Step With Job Growth
Thursday, April 4, 2013
Aired 4/4/13 on KPBS News.
As home prices begin to rise again, some ask whether another housing bubble is in the works. One analyst suggests San Diego’s housing market is on firmer footing than some other big cities.
San Diego home prices soared even higher than many other big cities before the housing bubble burst, so it’s only natural to be on the lookout for trouble when prices begin to rise again.
But Erik Bruvold of National University System Institute for Policy Research said San Diego’s increase in home prices are in step with job growth.
“San Diego’s housing prices have increased about 10 percent," he said. "That puts us about ninth in all metro areas. If you look at employment growth during the same period of time, that puts us about eighth, so there’s a decent alignment there.”
Bruvold said San Diego is doing well in comparison to “frothier” markets like Phoenix, which was first in home price increases last year but only ninth in job growth.
It is worth noting, however, that though the rankings almost match, job growth was nearly 10 percent last year while non-farm job growth was only 2.5 percent in San Diego.