Incomes Predict 40% Decline in San Diego Housing Prices

California Housing Forecast reports:

We really are a low-wage town, and our house prices are still too high. The median price needs to fall 40%. First, some facts.

Income disparity in San Diego County is growing.

About 20% of families at the bottom earn only 4% of our County's income, while the 20% of families at the top earn 25%.

Only 9% of county residents earn over $75,000 per year.

The poverty level is over 11%, ranging from 6% in Carlsbad to 15% in Vista. That means over 330,000 people in San Diego County live below the federal poverty level.

Adjusted for inflation, average income fell almost 4% last year.

This income disparity explains why the housing market is being kept afloat by the middle and higher tier of San Diego income earners.

3/4 of our wage earners make less than $ 45,000 per year. The median household income is close to $ 60,000, but it is skewed by the higher wage earners