How Millennials Impact Affordable Housing Supply

Jolanta Campion

How are population growth and demographics related to affordable housing supply? In San Diego, the population growth has been a steady .6% annually for the last decade, and millennials and gen-Z make up more than half of the population, according to a recent report from Cushman & Wakefield. In addition, like many Southern California markets, the supply of affordable housing is becoming increasingly limited.

“Housing affordability remains an issue in San Diego where a minimum income of $126,400 is required to qualify to purchase a house compared to $54,800 nationwide,” Jolanta Campion, director of research in San Diego at Cushman & Wakefield, tells GlobeSt.com. “Median single-family home price is forecasted to increase 5% on average per year between 2019 and 2023 compared to 3% of median household income. Only 29% of households could afford to purchase a median priced home compared to 31% in California and 56% nationwide as of Q3 2019, according to California Association of Realtor’s Traditional Housing Affordability Index.”