San Diego’s residential real estate market is expected to remain strong, primarily due to a significant shortage in housing supply. This insight comes from a recent San Diego Union-Tribune article by David Garrick, titled “Report: S.D. far behind housing goals.” You can read the full article here. Below are the essential points summarized from the article’s information.
The city’s ambitious goal to construct 108,000 new units by 2029 is falling drastically short, especially in affordable housing. This shortfall is most pronounced in middle-income housing, vital for the city’s workforce, where only a fraction of the needed homes have been permitted.
Efforts to accelerate construction, such as density bonuses and streamlined approvals, have seen limited success, with new housing predominantly concentrated in select neighborhoods. This clustering limits broader citywide housing availability, exacerbating the shortage.
The strong demand, coupled with the acute housing shortage, especially in affordable segments, is set to keep real estate values high. In short, San Diego’s residential real estate market is expected to remain a solid investment over the next decade, driven by persistent supply challenges and unwavering demand.
The Fidelis Private Fund’s portfolio, which is focused on loans secured by residential housing in San Diego County, is strategically aligned to remain strong based on the housing supply shortage boosting property values.
Fidelis Private Fund annualized yield paid to Limited Partners for the Month of November was 9.36%. Click here for a summary of Fidelis’s annualized yield since inception.