Nevin is director of economic and market research at Xpera Group, the West Coast’s largest source of experts in construction and real estate.
When I look at the long-term demand for housing in San Diego County, I inevitably turn to the San Diego Association of Governments (SANDAG) population and household projections.
In recent months, many U.S. business magazines have run stories ballyhooing the Texas success story and, in particular, how that state is stealing business from California.
Much of our real estate consulting practice calls for focusing on small areas around Southern California. Most often, we concentrate on a project’s ZIP code, as virtually every ZIP code has a distinct demographic profile. Here I am focusing on 92103 — Bankers Hill, Hillcrest and Mission Hills, although a small part of Bankers Hill — below Laurel Street — is in 92101.
I have just returned from Boston where Little Italy is really Big Italy. Cannoli and gelato rule the day. The entire North End of Boston is inundated with great restaurants, great street scenes and real live Italians. I really don’t anticipate that we can ever emulate Boston’s Little Italy experience, but we can sure give it a try.
Things are going rather well for San Diego County. Last year, California added 250,000 people and San Diego accounted for 28,000, or 11 percent of that gain. Better yet, we were the second-highest county in the state in terms of population gain, second only to Los Angeles.
Most economic indicators in San Diego County are moving at an acceptable pace. Our population is growing. We gained 20,000 jobs in 2012 and it looks like we’ll do the same or better in 2013. Our sales tax revenue was up more than 7 percent (allowing our governments to function more smoothly) and car sales are booming. The only weak link is construction of for-sale housing. That’s still dragging along at 20 percent of the level of the early 2000s.
Insurance looms in my life. In the past few months, I have taken the time to chat with a number of professionals in the insurance and estate planning industries to learn more about how insurance can provide financial protection while we are alive and later for our heirs and heiresses. And, of course, I look at insurance from a real estate viewpoint.
It can’t be said for everywhere in the United States, but it can be said that San Diego is back on track to achieve a semblance of economic normalcy. 2013 looks like this:
Next month we will elect many new mayors and council members in this county. They all need to begin thinking about the future housing needs of their jurisdictions.
As a real estate economist with a long history of following trends, it has become apparent that the changes in demography -- both national and local – will have an enormous effect on how businesses function now and in the future.
Just because you do not see a myriad of cranes downtown doesn’t mean that there is not a lot of activity going on. It’s just that most of the activity is in projects that have stunted development — are less than 10 stories high.
I am confident that the state of the economy can be improved. After all, we are in the fifth year of the recession and, at the present pace, it will be at least three more years before we reach a state of acceptable employment growth and expenditures. We need more than 8 million jobs just to get back to 2005 levels.