The United States… has already reached the foremost rank among nations, and is destined soon to out-distance all others in the race. In population, in wealth, in annual savings, and in public credit; in freedom from debt, in agriculture, and in manufactures, America already leads the civilized world. ~Andrew Carnegie, 1886
Holafly recently ranked San Diego the No. 1 most relaxing city. They stated that America’s Finest City “offers a perfect blend of nature and wellness and a laid back, relaxed atmosphere, with stunning coastline, scenic parks and year-round sunshine.”
AMEN!
Well as we watch San Diego residents unhappily start absorbing the cost of trash pickup, I thought I would ask a question on the other end of the spectrum. Just how rich do you have to be to not take out your own trash? Now that would be laid back, wouldn’t it? I suppose you could live in a hotel, then you could have daily maid service.
San Diego is not only generating more income from trash services, but it is also making millions more on hotel taxes, despite booking fewer guest rooms. Pre-pandemic, hotel occupancy was about 80%, and now we are hovering at 75%. So, how can taxes be more, you ask? Prices. San Diego room prices have risen 26%. This month, the city council will consider a minimum wage mandate for hotel workers from $17.25 to $25 per hour – that’s a 45% increase. Folks, trees don’t grow to the sky.
Just as higher prices don’t fill hotel rooms, higher wages don’t create more jobs. According to Mark Zandi, Moody’s Analytics economist, more than half of U.S. industries are already cutting jobs.
In San Diego, the county unemployment rate is close to 4.89%. That compares to 4.2% U.S. average and 5.5% in California. This seasonally adjusted rate has been increasing every month since March. Real estate brokers and agents aren’t immune to unemployment either. In March of 2025, California had 2,000 less brokers than the previous year and about 7,500 less agents at the same time. We look at it as less competition or thinning of the herd. As I celebrate 40 years in the business, Matt has 15 years, Nick has 16 years and Pete has over 40 years, it’s not our first rodeo.
One other number that San Diego is No. 1 in the nation for is inflation, which, at 4%, is the highest in the nation
Real estate cycles are not gentle. In a typical real estate bubble, prices get too high, buyers go on strike, and then sellers panic. Inventory piles up, and prices start to fall, gradually at first, and then all at once – that is the American way.
Nick’s Numbers
Although student loan debt gets all the news at a 10% delinquency, its historical average has been 11%. Credit card delinquency is troubling, growing 36% in three years to a 12.3% delinquency rate well above the recent historical average of 7.8%.
Amazingly, mortgage debt has remained largely current with less than a one percent (.8%) delinquency. That’s half of recent historical average and nowhere near the almost 9% reached in 2010. Below is a chart illustrating these trends.
If you would like an analysis of your property’s value or discuss what you should be doing with regard to interest rates or inflation and their impacts on your business, tenants, or property, I’d be happy to talk. (Nick Zech, 858-232-2100, nzech@cdccommerical.com).
Our region has long been fighting a homelessness crisis. Unfortunately, despite countless amounts of dollars and time, the problem seems none the better and the bureaucracy seems worse. We all just wish someone could step over the problem and provide an elegant solution. Well Hayden Hughes, a 16-year-old junior at 4S Ranch High School just jumped to the front of that line (https://nbcsandiego.app.link/AXquXaAjFVb).
He has created a simple website that can be accessed by a QR code that lists all available homeless resources in San Diego in one place in a very simple format. My suggestion is you print these onto stickers and put them with your no loitering signs or cards to hand out.
Despite concerns about the economy, employment, and homelessness, I am overwhelmingly encouraged by what a great time we live in. Think about it: whether you are rich enough to not take out the trash or you are living amongst the trash, you have YouTube instructional videos and ChatGPT available to you from essentially the identical cell phone or computer keyboard. Whether you take out your own trash or take out others trash, you can both buy the same movie ticket and watch the same $100 million cinematic extravaganza. I know wages may not be fair, sexism and racism may still be out there, and employment isn’t equal. But America indeed leads the civilized world.
I hope you enjoy this month’s story, which is an old piece by comedian George Carlin…
The Paradox of Our Time by George Carlin
The paradox of our time in history is that we have taller buildings, but shorter tempers, wider freeways, but narrower viewpoints. We spend more, but have less. We buy more, but enjoy less.
We have bigger houses and smaller families, more conveniences, but less time. We have more degrees, but less sense, more knowledge, but less judgment, more experts, yet more problems, more medicine, but less wellness.
We drink too much, smoke too much, spend too recklessly, laugh too little, drive too fast, get too angry, stay up too late, get up too tired, read too little, watch TV too much, and pray too seldom.
We have multiplied our possessions, but reduced our values. We talk too much, love too seldom, and hate too often. We’ve learned how to make a living, but not a life, we’ve added years to life, not life to years. We’ve been all the way to the moon and back, but have trouble crossing the street to meet a new neighbor. We conquered outer space, but not inner space.
We’ve done larger things, but not better things. We’ve cleaned up the air, but polluted the soul. We’ve conquered the atom, but not our prejudice. We write more, but learn less. We plan more, but accomplish less. We’ve learned to rush, but not to wait. We build more computers to hold more information to produce more copies than ever, but we communicate less and less.
These are the times of fast foods and slow digestion, big men and small character, steep profits and shallow relationships. These are the days of two incomes, but more divorce, fancier houses, but broken homes. These are days of quick trips, disposable diapers, throwaway morality, one-night stands, overweight bodies, and pills that do everything from cheer, to quiet, to kill.
It is a time when there is much in the show window and nothing in the stockroom. A time when technology can bring this letter to you, and a time when you can choose either to share this insight, or to just hit delete.
Remember to spend some time with your loved ones, because they are not going to be around forever. Remember to say a kind word to someone who looks up to you in awe, because that little person soon will grow up and leave your side.
Remember to give a warm hug to the one next to you, because that is the only treasure you can give with your heart, and it doesn’t cost a cent. Remember to say “I love you” to your partner and your loved ones, but most of all mean it. A kiss and an embrace will mend hurt when it comes from deep inside of you.
Remember to hold hands and cherish the moment for someday that person will not be there again. Give time to love, give time to speak, give time to share the precious thoughts in your mind.