San Diego Regional Chamber Business Forecast - August 2016

August 17, 2016

County Businesses Agree: Housing Expensive and More Needs to be Built

The region's housing shortage continues to be a topic of much discussion and this month the Silvergate Bank-sponsored Business Forecast looks at what county businesses think of the issue. The findings reveal that nearly every businessperson (93 percent) in San Diego County believes housing in the area is expensive, and 44 percent say it's much too pricey.

Geography within the county also plays a role in housing costs. While no region of the county is immune to high housing prices, businesses in the north inland portion see the problem as less extreme. Only 28 percent of firms there say housing is much too expensive in that area, and 14 percent even believe it's affordable. In contrast, 55 percent on the opposite side of the county, the south suburbs, believe prices are much too high.

During the past six months, confidence among San Diego County businesses has been continually up-and-down. Those fluctuations in confidence continue this month as the Business Outlook Index (BOI) moved up about five points to 20.9. While this is a slight improvement over last month's 15.7, the lowest point since the survey began in August 2013, it is still below the historical average of 25 and the 52-week trend has been downward. The BOI ranges from -100 to +100, with zero being neutral, so the overall outlook remains somewhat positive. Read the full story