Boroughs & Burbs, the National Real Estate Conversation

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Welcome to our Great Southwest Show, episode #64 of Boroughs & Burbs. This week we have a tale of two cities which could not be more different, and yet they share a great deal in common.

First, there's San Diego, known as "America's Finest City" with its quintessentially southern California vibe. It's a more laid-back environment, and a much more affordable market than L.A., attracting "billionaires in board shorts."   Blessed with the most temperate climate in the nation, averaging 65 degrees and sunny all year long, its a market bounded by the Pacific to the west, the ecologically-protected desert andmountains to the east, Camp Pendleton to the north and Mexico to the south. With these natural boundaries limiting development, and an economy long-dominated by the military presence in the area, is it any wonder that San Diego has been one of the most stable real-estate markets in the country? Greg tells me that they've been short of inventory for the last 30 years, something that most of the rest of us have been experiencing for the very first time. We'd like to understand who besides Alicia Keys is moving to San Diegoand why?

We also have Scottsdale, Arizona, city of 250,000, long known as an incredible tourist destination but sometimes overshadowed by its sister city Phoenix. Like San Diego we see that tourism is now the second-largest industry in Scottsdale as the medical industry is on top. The median price of a home in swanky Pinnacle Peak is only $660,000. Prices have appreciated in Pinnacle Peak by only 10% this past year whereas in South Scottsdale they went up 30%. Taxes are not bad. The top income tax bracket is 4.5% andproperty taxes statewide average only .62%, significantly less than the nationwide average of 1.06% (compare to Connecticut at 2.13%, New Jersey at 2.49% and New York at 1.72%)  Some of the questions we have for Nicole are who is moving into Scottsdale and why? With all of these medical facilities and golf courses can we still say this is a winter destination for retirees, or has Scottsdale evolved into a more balanced year-round community? Is Scottsdale still affordable, or is Arizona experiencing some of the terrific appreciation levels seen in Palm Beach, Boise, and Austin?