SAN DIEGO (KGTV) — Even though San Diegans have started to feel some relief regarding inflation, one area remains an exception: housing.
ABC 10News spoke with Daniel Roccato, a Clinical Professor of Finance at the University of San Diego.
“We are seeing some positive signs on inflation overall. The rate of inflation — still high, way above where the Fed wants it, but starting to moderate,” said Roccato.
Roccato says housing inflation in San Diego is a chronic problem for tenants and buyers.
“At the end of the day, it’s about supply and demand. People want to live in San Diego. It’s a beautiful city. It’s a popular city. And it’s an expensive city because the supply of housing simply cannot meet the demand,” he said.
Because of this, even as high interest rates help lower overall inflation on things like groceries and gas, housing costs remain high.
According to the Department of Labor, the cost of shelter in the San Diego area is up 7.6% compared to last year.
Regarding buying a home, experts say there could be some slight interest rate relief towards the end of this year.
“What you saw for a little bit...was people staying out of the market while interest rates climbed tremendously, but people have sort of given up. They know rates are here to stay,” explained Jordan Beal, President of the Beal Group and Broker Associate at Compass.
Beal says even with high interest rates, it’s a competitive market in San Diego, with homes often receiving several offers.
“Everyone should be doing everything they can to purchase instead of rent. Don’t pay someone else’s mortgage when you could pay your own. If you have to give up a little bit of what your dream home might be, get into a property,” he said.
Despite the challenges of buying a home, Beal encouraged prospective buyers to be persistent — calling San Diego real estate one of the best long-term investments you could make.
