Renters, Homebuyers Feeling Squeezed In San Diego
Rents in San Diego have gone up 8% in the last year. The average a one-bedroom is over 1500 rent for a student was $1300.hundred ($1,821 for a two-bedroom; $2,257 for a three-bedroom; ) and a four-bedroom house was more than $3, thousand. That's the median.. It can be a little lower in some areas and higher in others. But renters in City Heights have had enough... Today is National Renters' Day of Action and a group called San Diego Tenants United will stage a rally. They want to Rent control in San Diego they want to lobby for.Rafael Bautista,is an organizer with San Diego Our guest isTenants United, the key for being what the specs? What are renters experiencing? Exploitation that has not been seen for quite some time. The last and there was are renters movement was about 40 to 50 years ago during the 60s and 70s. When the other movements were happening, right now what is happening, rents are increasing at uncontrollable rates. 6%, 10% increases a year. This is not the first time are calling for rent control in San Diego I understand? We have been working on this for some time. We kick off the campaign for rent control, and we rally petitions at the beginning of this year. Year and half ago we started talking about rent control in our platform as a campaign for city Council. Voters and a half a dozen of other cities in the Bay Area are considering rent control policies in this November ballot are you rooting for similar measures here in San Diego? Yes, our organization is part of tennis together, is a California organization, a rent to, it has to do with rent control. Most of these policies are trained to be passed on the ballot, the principal are consisting of rent control, tied to the consumer price index. And they are talking about developing a rent board were both renters and owners can show their grievances and work out any price increases if at all. Were talking about getting code compliance, actually doing something because right now there are six code compliance officers which is an improvement from three for the entire city and with that's created is a huge backlog of properties being neglected. That relates to the next point, the motivation that a landlord would have to improve their property. We have a clicker from Mark Goldman who is a lecturer and he believes that the real problem is shortage of supply what is driving house costs are. Rent control my opinion will exacerbate the problem. In addition to all the risk associated, the time it takes to get entitlements to build housing, and the costs associated with getting entitlements for new housing cut you add a layer, now there is not an opportunity to collect a market rent. Two things, it makes investors less willing to invest in housing in San Diego, and it also makes lenders less willing to loan on housing in San Diego. How to react to the comment that rent control make -- may backfire? Investors may not be able to recoup their costs if rent is controlled? I am quite -- I'm quite disappointed that the argument has a foundation that we have to look out for those who can make the most money. We talk about not building, it has nothing to do with rent control. Not building, we want people to build. We want development without displacement. So when we are talking about San Diego and the way they develop, they develop luxury housing for higher income people are perpetuating this complete of renting people. So when an economist start talking about rents, depriving the market from doing what they do, we're not talking about we don't want rents to happen, they are in effect. Were talking about, not allowing them to go up 8%, 10% every year. Right, there is this question about incentives, if you are a landlord, and you feel like you want an incentive to improve your apartment, you would probably only do that if you thought you could raise the rent. That may discourage landlords from keeping care of their properties as you talked about earlier. Is already happening. The landlords are neglecting the properties. There is no rent control in effect. I'm a real estate broker so I know that to have a good deli and a property you need to maintain its. If you're going to be able to -- be a operating business, you are going to look for the cost that will be involved, operating the business and unfortunately, more and more, San Diego apartments are becoming more more of a business that large entities are owning. Is there any difference between the way you want it to control here in San Diego or as it does in Northern California? We do not have any effect of rent control basically anywhere. We have some in mobile home parks. Right, what were talking about is citywide or countywide, or statewide. Were talking about fully encompassing rent control, were not talk about discriminating between areas, bills, and locations, were talking about the entirety -- You want this to be a blanket policy? Of course, is affecting everybody. The top tier and all the way through. When they are affected, this is actually trickling down. It displaces people all the way down to the bottom. How many people do expected turnout at today's demonstration? How far way are you from actually putting something on the ballot? So I think we have -- starting with looks patients at first, we have been getting very good feedback from media coverage, and I think we originally thought between 20 people, 40 people, we have about possibly 100 people and I want to make sure that people are reached by the situation with the cops killing innocent unarmed people, also join us. Thank you so much for joining us. Thank you, thank you hope to see everyone at more than Broadway at 1:30 PM. We will march to City Hall to make sure they receive a 5000 plus petitions for rent control and over 200 code compliance complaints from members of the community. That is in order of national renters day. He is an organizer with San Diego's tennis United.
If you already own a home in San Diego, well done, but the latest reports strike fear into those eying the market and hoping to jump in before it spirals out of their reach. The median home price is now $498,000 in August, nudging up to half a million dollars. We thought we'd invite in a professional whose job it is to help people buy their first Home they have any words of comfort in San Diego and to see ifor advice for the house hunter. Ginnie Mae is Vino Pajanor is president and executive director of Housing Opportunities Collaborative which is a non profit that provides a free service and helps educate the public on all aspects of owning or renting a home . Thank you for joining us. Thank you for joining us. Your organization works with other nonprofits, how many people are you serving? We are clearing house and we of apartments with the southern California area, on average, a given month, 300 first-time homebuyers go through these classes with our partners. Out of the 300, about 10 or less than 10 persons of them qualify and become homeowners in six months to eight months. How come so few end up buying homes? Is because of high cost to housing and living in San Diego. And other parts of Sandy -- California. When somebody starts out, yes, it's an opportunity to buy a home but realistically you have your housing costs, living cause, all of it adds up. You may not be qualified to buy a home. That is the income of 128,000 That is the income of 128,004 of single-family, you may be saving up for your down payment. Most of the folks who go through this program, because of their employment, they have lower incomes, their in San Diego, they cannot get qualified. So therefore we create our first-time homebuyers, during the six months, or a two months, look at improving her skills, finding a better job, increase your income so that you can afford to get the first starter home or the single-family. Given the high price of homes in this area would advice you are giving to get the best chance to afford a home? There are many opportunities for first-time homebuyers in San Diego. Is getting yourself informed and educated about it. There are many cities in San Diego, County, and the state of California with the California finance agency, Down payment assistance, even if you save 5% down for buying a starter home, first-time cut back there -- there could be other funding out there that could be leveraged on top of your savings to get into a home. Let's say somebody someone's making 80,000, they could save up and then they could get a down payment assistance or other grants that are available to financial institutions and others who leverage that to make them cross over with closing costs and all of that. That's what we say get educated and informed. Other neighborhoods that you encourage people to look out for first-time home buying? Most of us in San Diego want to live near the beach. But on partially with cannot all do that. There is the outskirts, Fallbrook, Escondido, these are good places. Parts of San Marco's, El Cajon, Lakeside, even in South Bay, you have some parts of Chula Vista that are affordable. Based on your income, look at your budget, for all prospective homebuyer do a budget copies on your budget you look at what you have and what you should be doing in the future. Then look at the credit score, then only, only then you look at looking to buy in San Diego. If you buy a home near the beach in the military budget, you will be disheartened he will lose American -- in the budget he will be disheartened he will lose the American dream. If you make good money, hundred $28,000 of the family, go for the single family homes. But if you are a starter and you have $80,000 as a family, look at the apartment condos available in San Diego. That your gateway, and real estate is always said that their ups and downs, recently, 10 years ago, we had a bubble bust, but still if you pulled on you are stable in the ownership, you can always ride the waves and when it comes back up, and climbs back up, you sell the house get your equity and then move into a starter single-family residence. At your foot into the door? Yes. Density, a lot of people are against the city. What to say to that? Sandiegans have to change our mindset, we want to spread out, we want our own home, but the millennial's they do not want to drive an hour to work they want to live and work in the place, that they house at. Looking at what developments in San Diego, it would be denser, we as Sandiegans have to change our thought process, if not , cities around us will beat us. They are looking at a denser developments, they can attract the younger population, jobs into the area, therefore they become liable proposition for others than San Diego. Is a interesting perspective. Thank you so much. Thank you for joining us. Thank you.
San Diegans are spending a larger share of their paychecks on housing, whether they're renting or looking to buy a home.
Group favors rent control to stabilize rental market
The housing shortage is also affecting rental rates. The average rent in San Diego County is $1,743. That’s up more than 8 percent from last year.
The community group, San Diego Tenants United, believes rent control can help stabilize the rental market.
As part of a National Renters’ Day of Action, the group plans to hold a rally downtown Thursday.
Organizers are pushing for a freeze on all rent increases and unjust evictions. They would also like to establish a rental control board to help tenants and landlords air grievances.
Voters in five Bay Area cities will be voting on rent control ballot measures in November.
Nonprofit helps potential homeowners in challenging market
It's no secret that housing prices in San Diego County are high. But, new data released this week by CoreLogic, which analyzes real estate, found prices are the highest they've been in a decade.
The San Diego Union-Tribune reported The median price of a home in San Diego County was $498,000 in August.
The Housing Opportunities Collaborative is an organization that works with other nonprofits to provide classes for first time home buyers. The organization's executive director, Appaswamy "Vino" Pajanor, said that about 300 people attend these classes every month and fewer than 5 percent are becoming homeowners in the following six to 18 months.
He said potential homebuyers are being encouraged to look at other options to afford a home, such as purchasing a townhome or condo, instead of a single-family home, or to look into buying in a cheaper neighborhood.
Rafael Bautista with San Diego Tenants United, Mark Goldman, real estate lecturer at San Diego State University and Vino Pajanor join Midday Edition Thursday to talk about how housing costs are affecting San Diegans.