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Home        Vol V   Issue 28               July 12, 2010       Previous Issues

 

 

Gentle Mediterranean Climate, Endless Array of Activities, Seventy Miles of Beaches and Excellent Medical Facilities are Reasons Why Retirees Come to Scenic San Diego, California

Cost of Living:  Well Above the National Average

 

San Diego (population 1.3 million with 2.8 million in San Diego County), just twenty miles north of the U.S./Mexico border, is California's second largest city and the eighth largest city in the United States.  It is also one of the most affluent cities in the nation.  Known only to the Kumeyaay Indians for thousands of years, that forever changed in 1542 when Juan Rodriguez Cabrillo, sailing for the Spanish crown, stumbled upon what is now known as San Diego Bay and claimed it, along with the rest of the western coast, for Spain.  The first presidio was built on a hill in 1769, and as residents later left the safety of the military fort to settle in the surrounding area, San Diego began to grow.   Old Town San Diego, not far from where the original presidio stood, is now recognized as the birthplace of California and is a state historical park.  San Diego continues to boom, growing nearly 7% in the last decade alone, and although it is not without problems, this ethnically diverse, cosmopolitan city by the sea still beckons to the young and the more mature demographic alike.  In fact, 35% of the population is age 45 or better.

 

 

Despite the Great Recession, San Diego's cost of living remains high, nearly 32% above the national average.   And although real estate prices have fallen from the high prices typical during the run up to the housing crash, the current median price for a single family home is $390,000, well above the national median (the median price of an attached home is $270,000).   Prices have risen from a year ago, but 35% of active home listings are still foreclosures or short sales.  Most of these are priced below $400,000, and zip codes 92114, 92115, 92102, 92105, 92114 and 92115 have been particularly hard hit.   Above the $400,000 price point, inventory opens up, and "deals" are harder to find.  

San Diego has one hundred or more named neighborhoods, each with its own character.   Some are planned neighborhoods; others sprouted as the city blossomed.  Generally speaking, the nicer areas are those closest to the beach and north of downtown and Balboa Park (the city's sprawling cultural and environmental urban oasis), while some areas on the southern end of the city can be a little dicey.  A few of the city's best-known neighborhoods include La Jolla, Scripps Ranch and Rancho Bernardo (which suffered fire damage in 2007).

San Diego's architecture is varied, evoking distinct eras from the city's past.  Golden Hill and the Gaslamp Quarter boast resplendent Victorians; North Park is known for its Craftsman bungalows; Old Town is home to red-roof adobe structures that date from the city's earliest days, and Mission Hill is comprised primarily of well-restored homes from the 1920s and 1930s.   Other neighborhoods are known for their inhabitants.  Pacific Beach is home to surfers and has an active nightlife.   Hillcrest is an older, now-gentrified neighborhood with diverse, gay and educated residents (37% have a college degree).   Linda Vista is home to the University of San Diego (and the very first shopping mall in the U.S.) and is peppered with college students.

Age-restricted communities are in good supply.   In Rancho Bernardo, northeast of downtown, Oaks North is a large 55+ community with 1,963 condos, town homes and single family ranch-style residences with red tile roofs.  Homes here were built in the 1980s and start in the $200,000s; they top out in the $500,000s.   Seven Oaks, also in Rancho Bernardo, has homes built in the 1960s and 1970s.  Prices begin in the $200,000s and $300,000s.   HOA fees are $250 per month (but homeowners do most of the maintaining).  Generally, these developments attract older residents.

San Diego, California


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 This is an interactive map.  Click on the arrows in the upper left hand corner to move the map to the East, West, North or South, and click on the +/- signs (more than once if necessary) to zoom in and out.

Ocean Hills, a 55+ community about 30 minutes from downtown and four miles from the ocean, has 1,600 homes, all whitewashed with red tile roofs, a huge recreation center and clubhouse, a concert hall, an actual library and has won awards for its architecture.  Homes here start in the high-$200,000s and top out in the $700,000s.    HOA fees are $380 to $415 per month.   Villa Trieste is one of San Diego's newest active adult developments and is small with roughly 150 duplexes.  Only two miles from the ocean, prices are start in the $300,000s.   HOA fees are $250-$270 per month. 

Rentals in retirement communities are scarce, but San Diego has a large variety of apartment complexes.  The average rent for a two bedroom apartment is $1,400 per month.   There are also more than 100 mobile home/manufactured home communities, in all shapes and sizes, most of which are in the northern areas of the county.    In 55+ parks, prices range from approximately $75,000 to $200,000 for a mobile home without land and from around $150,000 to more than $300,000 for a mobile home with land.  In general, prices along the coast are higher than those inland.   Parks where homeowners do not own land typically charge $300 to $600 per month for space rent; in parks where homeowners do own land, monthly homeowner fees range from $75 to $200 per month. 

The maximum amount of tax on real estate is limited to 1% of the full cash value of the home.  Under a homestead program, the first $7,000 of the full value of a homeowner's dwelling is exempt from state tax (without the exemption, the taxes on a $400,000 home would be $4,000 annually).   Other tax assistance programs that were in place have been suspended due to California's current economic situation.   Regarding retirement income, Social Security and railroad retirement benefits are exempt from state income tax.   All private, local, state and federal pensions are fully taxed.   Personal income tax rates range from 1.25% to 10.5%.

Health care in San Diego is extensive.  There are more than two dozen general hospitals, several of which are award-winning and provide care for every medical ailment imaginable.  The University of California San Diego Medical Center ranked among the best in the nation in six adult specialty areas in 2009 (U.S. News and World Report's annual “Best Hospitals” issue).  The University of California San Diego School of Medicine conducts leading-edge medical research which benefits the entire region and is ranked #16 on U.S. News and World Report's list of the top medical schools in the nation for 2010.   Scripps Mercy Hospital has won HealthGrades.com' Distinguished Hospital Award for Clinical Excellence™ for 2010.   Sharp Healthcare operates six acute care hospitals and offers community and medical resources specifically designed for San Diego's senior population.   They also operate two Senior Health Centers staffed with geriatric-trained physicians and nurse practitioners who take as much time with their patients as needed, a welcome change from sometimes rushed appointments.   Sharp also received the Patient Safety Excellence Award™ for 2010.

San Diego's main attractions, which bring tourists from around the world, are Balboa Park (home of museums, theaters, gardens, the famous Spreckels Organ - the world's largest outdoor musical instrument - and the wonderful San Diego Zoo), Sea World, the Birch Aquarium, Old Town and the Wild Animal Park where the inhabitants roam freely.   Sports fans enjoy major league baseball (San Diego Padres) and professional football (San Diego Chargers), as well as the opportunity to golf at more than 90 private and public courses in and around the area.  The ponies run at Del Mar Race Track, and boating, deep sea fishing, surfing, sailing and every other water activity one can think of are just minutes away (most homes are within 30 minutes of some portion of the area's seventy miles of beaches).   

When not at the beach, the San Diego Museum of Art, which houses collections of Dutch Old Masters and works from the Italian Renaissance, the La Jolla Playhouse, a Tony-award winning theater, the California Ballet Company, the San Diego Opera, the San Diego Repertory Theater and the Joan B. Kroc Theatre at Kroc Center's Performing Arts Center provide opportunities to enjoy a little culture.  San Diego is also home to several military installations and has one of the largest naval fleets in the world.  Bases are open for public tours.   Excellent restaurants are in abundance, and shopping, particularly in trendy La Jolla and historic Old Town, is world-class.    Downtown, while not as spiffy as might be expected or desired, has been undergoing a bit of a renewal, and some new hotels and restaurants have opened.  And for a city its size, it is nice to report that San Diego's crime rate meets the national average.

The San Diego Parks and Recreation Department operates Senior Citizen Services, an organization that manages eleven senior centers throughout the city.   Low cost health screenings, transportation assistance, legal guidance and social activities (dances, trips and special events) are just a few of the services offered.   Meals on Wheels is also active.   The vast San Diego Public Library has 34 branches and an excellent menu of services, from hosting more free cultural events (guest speakers, piano recitals, book clubs, movie discussions and much more) than any other organization in the city to providing computers with Internet access and free wifi for laptop users.  

The Metropolitan Transit System provides buses throughout San Diego, but the light-rail trolley system is often more efficient.   People age 60+ ride for $1.10 to $2.50 one-way, depending on the type of transportation (bus or trolley).  Monthly passes are available for $18 to $25.   

Volunteer opportunities are in abundance, as would be expected in a city this size.  Seniors' time and talents are needed to mentor children at the N.A.I. Legacy Corps; to help man the gift shop at the Greater San Diego Science and Engineering Fair; to tutor students at the San Diego School Unified School District (22,000 volunteers) and to perform a variety of jobs in the huge San Diego Parks and Recreation Department.   The local RSVP (Retired and Seniors Volunteer Program) is also alive and well and has more than 1,000 volunteer opportunities in its database.

Few places in the world can match this area's arid Mediterranean climate.  Summers are warm and dry with temperatures in the mid-70s, and winters are mild with temperatures in the 50s and 60s (but inland, even just a few miles, temperatures fluctuate more).   They say it never rains in Southern California, and that is almost true as the average annual rainfall is less than ten inches (most of this moisture occurs from November through March during the "rainy season").    In May and June, fog often parks along the coast, and this "June gloom" can bring gray skies.  On average, though, the sun shines 266 days of the year, and humidity stays in the 60% range.   The air quality is below the national average, but the water quality is well above the national average.

At its heart, San Diego is just an overgrown beach town (with high-tech and biotech industries, a large military presence, a major university, etc.) and is laid-back and vibrant at the same time.  Yet California has lost some of its glow, and a San Diego retirement has drawbacks.  Wildfires and mudslides in the surrounding hills are an ongoing threat.  The chance of an earthquake, while below the California state average, is still 623% greater than the national average.   The air quality is not great.   Traffic is congested.   Class and racial lines are evident.   Some sections of the city are not in great shape.   Illegal immigration is an issue, although much of the migration activity has moved east to Arizona since Operation Gatekeeper was launched in 1994.   And California, as everyone knows, is in an economic crisis.

Despite these problems, and they are not minimal, San Diego and the California lifestyle still beckon.  With its miles of white beaches, scenic setting, temperate climate, average crime rate, very good medical facilities and nearly endless amenities, San Diego can prove hard to resist for many a retiree.

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