San Diego Economist Warns of Affordability Crisis, Calls for Creative Solutions

Keynote speaker highlights challenges of housing costs, segregation, and federal funding cuts, but sees opportunities in AI growth.

Published on Feb. 5, 2026

Got story updates? Submit your updates here. ›

At the 42nd annual San Diego Economic Roundtable, keynote speaker Daniel Enemark, chief economist of the San Diego Regional Policy and Innovation Center, discussed the region's economic challenges and opportunities. Enemark focused on issues like housing affordability, racial segregation, and the potential impact of federal funding cuts, but also pointed to growth in artificial intelligence as a promising area. He expressed concern that San Diego could follow the path of Santa Barbara, becoming unaffordable for many, and called for creative solutions to address the region's economic disparities.

Why it matters

San Diego's economic future is at a crossroads, with rising costs of living, persistent segregation, and potential federal funding cuts threatening the region's prosperity. However, the growth of AI presents opportunities if local businesses and policymakers can capitalize on it. Addressing these complex challenges will be crucial for ensuring San Diego remains an inclusive, thriving community.

The details

Enemark highlighted several key economic issues facing San Diego, including housing affordability, with the region ranking 272nd out of 300 cities for affordability. He warned that San Diego could follow the path of Santa Barbara, which was named the least affordable city in the U.S. last year. Enemark also discussed how historical land-use decisions have contributed to racial segregation, with Latino, Black, and multiracial communities clustered in weaker economic areas compared to White and some Asian communities. Additionally, Enemark cautioned that San Diego is vulnerable to federal spending cuts, as the region's employment base is heavily tied to the public sector and research funding. However, Enemark also pointed to the potential of artificial intelligence, citing local companies like Qualcomm, Illumina, and General Atomics that are poised to benefit from AI growth. He emphasized the importance of ensuring small businesses have access to these emerging technologies.

  • The 42nd annual San Diego Economic Roundtable was held on Thursday, February 5, 2026.

The players

Daniel Enemark

The chief economist of the San Diego Regional Policy and Innovation Center, who served as the keynote speaker at the San Diego Economic Roundtable.

Casa Familiar

A local nonprofit organization that has a program aimed at addressing economic challenges in San Diego County.

Got photos? Submit your photos here. ›

What they’re saying

“I think that we can solve these problems. I'm an optimist. But, we have to face the problems to solve them.”

— Daniel Enemark, Chief Economist, San Diego Regional Policy and Innovation Center (San Diego Union-Tribune)

“When people ask me how the economy is doing, I ask, 'for whom?'”

— Daniel Enemark, Chief Economist, San Diego Regional Policy and Innovation Center (San Diego Union-Tribune)

What’s next

Enemark said part of his concern with AI and technology was less about economics and more about a sense of decreased community, citing examples like self-checkout, remote work, and AI replacing human interaction. Addressing these social impacts will be an important consideration as San Diego seeks to harness the benefits of emerging technologies.

The takeaway

San Diego faces significant economic challenges, from housing affordability to racial segregation and the potential impact of federal funding cuts. However, the growth of artificial intelligence presents opportunities if local businesses and policymakers can ensure equitable access to these emerging technologies. Addressing San Diego's complex economic issues will require creative, collaborative solutions to maintain the region's prosperity and community fabric.