Builders of new housing in San Diego County have not overbuilt, like in the state of Florida. It could take years literally years to figure out what to do with the glut of empty condominiums around the state. Compared to Michigan, we are not directly tied to a dying industry like in the Detroit market. Riverside County had pinned its hopes on becoming a county of bedroom communities, which has yet to become a reality.
Our economy in this county is kept afloat by the presence of many very wealthy residents in the areas of La Jolla, Rancho Santa Fe and Del Mar. These people have hardly felt any consequences of the subprime lending crunch. The spending of these residents at local trendy stores and restaurants can help to bolster the retail sector of the area economy even as other less fortunate residents are forced to cut back. One other plus is these residents' property taxes alone can help keep revenue flowing to local governments in spite of the growing foreclosure crisis.
Our climate and unique job base will continue to be an undeniable draw to the area- as long as people can afford to live here. The price increases of the past three years have attributed to the migration of many residents north to Riverside and San Bernardino Counties.
Lastly, a noted University of San Diego economist, Alan Gin recently noted in a report that both defense and tourism dollars continue to flow into the local economy at all points n the business cycle, even when other areas of the economy are going badly.
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