San Diego: named the Worst City in the Nation to Accumulate Wealth.
California Has the Highest Poverty Rate in America (by far).
Why is California so oppressive to the poor and middle class?(!)
According to a new study by Bankrate.com San Diego is the worst city in the United States for building wealth.
San Diego ranked dead last, behind Los Angeles and San Francisco.
What do these cities have in common besides being in California?
UPDATE from Today’s Union Tribune in San Diego:
Year over year, San Diego home prices were up 6 percent — outpacing New York City, Phoenix, Chicago and the national average.
Yet, other major California cities are rising faster, the report said. From August last year, San Francisco increased 10.7 percent and Los Angeles by 6.2 percent.
“Home prices continue to climb at a 4 percent to 5 percent annual rate across the country,” David Blitzer, managing director of the index committee for S&P Dow Jones Indices, said in a statement.
Although great for sellers, increasing home prices for buyers was a factor in a Bankrate study released Monday that named San Diego as the worst city in America to build wealth.
The median home price in San Diego was $460,000 in September, according to CoreLogic.
That median $460,000 price tag translates to about $2300.00 a month in rent.
http://www.sandiegouniontribune.com/news/2015/oct/27/case-shiller-august-home-prices/
UPDATE:
In general, rent is rising across the country as American home ownership is the lowest it’s been since 1967 and there are more renter households than ever before.
Andrew Woo, data analyst for Apartment List, said it used U.S. Census information for the study, which showed a typical resident in San Diego spending 34 percent of their income on rent. Spending a third or more of income on rent qualifies as moderately or severely cost burdened by Apartment List. Twenty seven percent of renters in San Diego pay over half their income toward rent.
“I think that is pretty astounding,” Woo said. “Half of your income on rent doesn’t leave much for health care (or) savings.”
San Diego rent increased by 17 percent from 2007 to 2014 whereas income increased by 13 percent, Woo said.
Finance lecturer Seth Kaplowitz from San Diego State University’s business school said high rents in San Diego make starting a career in a less established marketplace more favorable.
“My recommendation to my students is to get out of San Diego,” he said. “Make your mistakes on someone else’s money and come back to San Diego if that’s what they want to do.”
Lynn Reaser, chief economist at Point Loma Nazarene University, said the cost of regulation is adding to the scarcity of land, which drives up rents along with home prices.
The total cost of regulation — including building permits, drainage, traffic — makes up roughly 40 percent of the cost of housing in San Diego County, according to a recent study from Point Loma Nazarene University.
Dr. Kevin Purcell, DC. Dedicated to serving others …