Whether you like President Trump or not, his Presidency (like President Obama's) should be positive for San Diego real estate. Two things are driving San Diego real estate prices higher right now:
1- A back log of housing. Population growth in the County created demand for an average of 15,000 new housing units each year, for the past five years. Only an average of 2,000 housing units a year were built in the County during that time. This means that today, we have a housing back log of some 65,000 housing units. The NIMBYs and environmentalists are fighting every new development proposed so that problem will likely become more severe. This means higher rents and home prices are on the horizon.
2- Good paying jobs are being created. A housing back log means nothing id residents can't afford higher prices and/or rents but employment data suggest otherwise. San Diego County is created a (positive) disproportionate amount of well paying jobs. Our base industries are: 1- military 2- technology 3- life sciences and 4-tourism The top three base industries are attracting higher than median income jobs to the County.
In 2011, President Obama shifted American foreign policy towards the Asia-Pacific Rim. This makes sense because most world wide growth is coming from that region rather than Old Europe. Obama believed that trade opportunities and foreign threats are more likely to come from Asia rather than the Middle East and/or Europe. This shifted defense spending from East Coast military facilities to West Coast military installations.
President Trump has not hidden that he thinks the military needs to be rebuilt. He gave a speech on the deck of the USS Gerald Ford where he announced his request for a $54 .billion increase in military spending. He also signaled that he wants to Navy to have more ships, specifically 2 more aircraft carriers.
Trump will likely succeed, too. Republicans control both chambers of Congress (and the budget).
Politics does play a role on local real estate and federal spending will likely favor San Diego County so demand should increase. State and local politics are anti-growth so supply will be limited.
Do the math. If supply is restricted and demand is increasing, higher prices are on the way.
