Category Archives: Real Estate

San Diego – New Vacation Rental Plan Taking Shape

The memorandum of understanding between Expedia and Unite HERE, brokered by City Councilwoman Jennifer Campbell, creates a framework to regulate vacation rentals that could potentially cut the number of whole-home vacation rentals within the city limits by 70 percent.

“San Diegans deserve short-term rental regulations that protect our neighborhoods, preserve valuable housing and will stand the test of time,” said Campbell, who represents coastal communities including Mission Beach, Pacific Beach and Ocean Beach.

The City Attorney’s office has agreed to draft an ordinance based on the Expedia/Unite HERE framework, according to participants. The new rules would carve out some of the more contentious items in previous attempts to regulate short-term rentals in the city.

The key piece of the agreement calls for capping whole-home short-term rentals to 0.7 percent of the city’s housing stock, which would amount to 3,750 permits.

The exact number of entire home vacation rentals being listed in the city currently is unclear. But the City Auditor has estimated total short-term rentals — both whole home and home share units — at 16,000.

“We have heard from an organization that watches over short-term rentals throughout the state that 80 percent to 90 percent are whole home rentals in San Diego,” said Campbell, “so home sharing is not a big part of it.”

Critics of vacation rentals say that platforms such as Airbnb and HomeAway create financial incentives for renting out properties for short-term stays instead of long-term residential use, thus reducing the housing supply and driving up prices.

read more at: https://www.sandiegouniontribune.com/business/story/2020-07-01/another-bid-percolating-to-rein-in-san-diegos-short-term-vacation-rentals

San Diego home prices increases continue to outpace nation

Note:  must take into account how many sales have closed; is there enough data (sales) to support a trend.

San Diego County home prices in May increased 7.3 percent in a year, faster than the nationwide average, said the S&P CoreLogic Case-Shiller Indices released Tuesday.

All the regions covered in the 20-city index experienced price increases, with San Diego near the top with the No.6 biggest increase (tied with Phoenix). Seattle had the biggest gain at 13.6 percent.

Zillow senior economist Aaron Terrazas wrote in an email that the report showed that the housing market was showing contradictory signals that the tide of rising prices could begin to turn.

A few of the factors he said that make it hard to tell what is next for the market: Rent growth has stabilized, which could make potential buyers less desperate to get into a home; Inventory is still historically low, but has increased in recent months; and housing starts are down, a sign that it is either too costly for builders to construct new homes or they anticipate less demand for buyers.

However, Terrazas said that a lack of homes for sale is still a large factor that will affect everyone looking to buy.

read more at: https://www.sandiegouniontribune.com/business/real-estate/sd-fi-case-shiller-20180731-story.html

Lenders with the best climate data will be in position to discrimate

As banks and other institutions get more detailed models, people who are most affected by climate change will face difficulties in getting financing.

We now live in a world where climate gentrification exists: People and institutions are starting to assess and appraise properties based on their susceptibility to climate impacts. The idea was largely hypothetical as recently as 2016, but over the past two years a decent body of work has emerged, much of it from U.S. academics, showing that both mortgage lenders and property buyers are pricing in some forms of climate risk.

Knowledge about climate change impacts, whether accurate or not, is already driving decisions by financial institutions that in turn affect livelihoods. Research by Jesse Keenan, an associate professor at Tulane University, and Jacob Bradt, a Ph.D. candidate at Harvard, found that lenders in some coastal and flood-prone areas are already requiring higher deposits before providing mortgages. They are also more likely to move such mortgages off their books via securitization, including to the government-sponsored entities Fannie Mae and Freddie Mac.

read more at: https://www.bloomberg.com/news/articles/2020-06-26/lenders-with-the-best-climate-data-will-be-in-a-position-to-discriminate