Living: What does it cost you?
By Tyson Lund
Real Estate Business Analyst
Carlsbad commands a premium price to live in the city. As a resort destination with miles of beaches, a variety of housing options, terrific shopping and great schools, Carlsbad has attracted attention as the golf capital of the world and home to an international theme park. The average price-per-square foot for Carlsbad property is around $340, much different than the figure in 1997 at around $170. Will this upward trend continue?
Carlsbad has seen first hand how supply and demand can drive prices. In 2004, a dearth of available property drove properties to appreciate $100,000 and more. And without trying the readers patience and listing every reason why Carlsbad is and will continue to appreciate, realize that the factors of supply and demand will weigh heavily on the future investment potential of the city. Currently, Carlsbad is made up of close to 40,000 residences. According to the city, existing and future development cannot exceed 54,600 dwelling units.
Growth management plan in Carlsbad
In 1985 and 1986, the nation was hitting a high point in the economic cycle. Carlsbad experienced a surge in development activity, growing by 11 percent from the completion of 2,036 homes in 1985. During 1986 the city grew another 12 percent by completing construction on 2,565 more new homes. Fueled by fears of overdevelopment, Carlsbad citizens adopted several growth management plans that are aimed to preserve Carlsbad and assure 40 percent of the city remains undeveloped.
According to Maslow's Theory, just after food and water comes shelter, included in "safety needs" and considered one of the most important areas of a person's life. It has been shown that people will pay a disproportionate amount of their income on their home. And we are not alone. Those who chose to live in New York will pay near $900 a square foot making our $340 seem inexpensive in comparison. Residents wanting a 1000 square foot condominium in Hong Kong would have to pay around $1.2 million. In Carlsbad, the same condo would sell for around $400,000.
What's the point?
The highest price per square foot in Carlsbad was paid on Ocean Street near downtown Carlsbad at $3.4 million for 1400 square feet, or $2,400 per square foot. With most of Carlsbad's coastline remaining undeveloped, save a few select streets, the principles of supply and demand prevail, causing beach-front properties to sell for a premium. As major media, like Fortune and Money magazine, continues to rank Carlsbad as one of the top places in the country to live and retire, Carlsbad will not go unnoticed by the global community. And as the supply of available property dwindles, this piece of paradise will carry a price.
By Tyson Lund
Real Estate Business Analyst
Carlsbad commands a premium price to live in the city. As a resort destination with miles of beaches, a variety of housing options, terrific shopping and great schools, Carlsbad has attracted attention as the golf capital of the world and home to an international theme park. The average price-per-square foot for Carlsbad property is around $340, much different than the figure in 1997 at around $170. Will this upward trend continue?
Carlsbad has seen first hand how supply and demand can drive prices. In 2004, a dearth of available property drove properties to appreciate $100,000 and more. And without trying the readers patience and listing every reason why Carlsbad is and will continue to appreciate, realize that the factors of supply and demand will weigh heavily on the future investment potential of the city. Currently, Carlsbad is made up of close to 40,000 residences. According to the city, existing and future development cannot exceed 54,600 dwelling units.
Growth management plan in Carlsbad
In 1985 and 1986, the nation was hitting a high point in the economic cycle. Carlsbad experienced a surge in development activity, growing by 11 percent from the completion of 2,036 homes in 1985. During 1986 the city grew another 12 percent by completing construction on 2,565 more new homes. Fueled by fears of overdevelopment, Carlsbad citizens adopted several growth management plans that are aimed to preserve Carlsbad and assure 40 percent of the city remains undeveloped.
According to Maslow's Theory, just after food and water comes shelter, included in "safety needs" and considered one of the most important areas of a person's life. It has been shown that people will pay a disproportionate amount of their income on their home. And we are not alone. Those who chose to live in New York will pay near $900 a square foot making our $340 seem inexpensive in comparison. Residents wanting a 1000 square foot condominium in Hong Kong would have to pay around $1.2 million. In Carlsbad, the same condo would sell for around $400,000.
What's the point?
The highest price per square foot in Carlsbad was paid on Ocean Street near downtown Carlsbad at $3.4 million for 1400 square feet, or $2,400 per square foot. With most of Carlsbad's coastline remaining undeveloped, save a few select streets, the principles of supply and demand prevail, causing beach-front properties to sell for a premium. As major media, like Fortune and Money magazine, continues to rank Carlsbad as one of the top places in the country to live and retire, Carlsbad will not go unnoticed by the global community. And as the supply of available property dwindles, this piece of paradise will carry a price.