San Diego has recently been named as the least affordable metro housing market in the entire country.

The average home in San Diego has increased more than 14% in the past year to over 700k for the median home price.

This means that this area is worse than the San Fran housing market, which has been notorious for costly housing prices over the years. The affordability in this case was determined by analyzing home price and household incomes.

There is a big problem with affordability in multiple regions around the U.S., it isn't only a California problem, there are interested home buyers and renters who are struggling with the worsening affordability in cities from Washington to Hawaii, California, and other areas.

California alone is short millions of homes to meet demand that is currently there in the housing market.

There aren't enough homes.

It has been estimated that they must build over 2 million by 2030 just in California if they want to try and prevent that housing crisis from worsening.

Trying to discourage speculation in the housing market

Now lawmakers think that they've got the solution. They are proposing a 25% tax on real estate investors in an effort to try and prevent short-term buyers from speculating and flipping. The 25% fee would reportedly be from profits made from the home sale if resold within 3 years after buying. The fee would still be there after 3 years mind you, but it would drop to 20% after the 3rd year, and allegedly decline each year until ultimately eliminated after 7 years.

Is this going to help the problem any with driving prices down for housing? Or will the prices rise even further with sellers adjusting for that fee they are anticipating with selling? Some have criticized the plan because it doesn't address the underlying major issue of supply and demand. It also doesn't address a variety of other factors that arguably might also be contributing to the rise and worsening of the affordability problem with housing the region as well.

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