The Growing Challenge of Home Affordability in San Diego and Across the U.S.
Home affordability has become an urgent issue in San Diego, California, and throughout the United States. Soaring home prices, combined with rising mortgage rates, have made homeownership increasingly unattainable—especially for first-time buyers. However, a key but often overlooked factor exacerbating the crisis is the growing influence of Wall Street-backed Real Estate Investment Trusts (REITs). San Diego, one of California’s most desirable cities, saw its median home price exceed $750,000 in 2023—far above the national average. Limited housing inventory, strong demand from tech and biotech professionals, and historically low interest rates over the past decade have contributed to this upward trend. However, institutional investors, particularly large REITs, have also played a significant role in driving prices higher. These firms, which oversee billions of dollars in real estate assets, frequently purchase single-family homes in bulk, outbidding local buyers with all-cash offers. By...