As reported by KPBS, San Diego homebuilding permits for 2017 are down 20 percent from last year and the homes that are being built are only applicable to buyers on the high end of the monetary scale.

To stay on top of demand, the city of San Diego needs to build 150,000 to 220,000 housing units over the course of the next 10 years. Thus far, the region is way behind. 

“The time for serious action is upon us. It is not someone else’s problem anymore. It’s a universal problem,” said Borre Winckel, president and chief officer of the Building Industry Association of San Diego County. “We believe 2018 will be, at best, as good as 2017 was, but probably we will have lower production rates because the cost to construct exceeds the pocketbook of most people.”

San Diego-area home prices have been rising all year and are among the highest in the nation. Until inventory can catch up with demand, or at least get closer, that trend is sure to continue.