California is a high cost of living state. That goes without saying. Yet the level of affordability oscillates up and down with the whims of the bubble economy. As of today the state faces a rental Armageddon trend where many families simply cannot afford to purchase a gorgeous, sturdy, and well-designed home (just kidding, most can’t buy a 700 square foot funky looking crap shack). Whenever people even hint at the expensive nature of California the yelling begins with ‘then move out!’ or ‘buying always makes sense!’ which seems interesting since the housing market really got out of control in many metro areas starting in the late 1990s as Wall Street injected its casino antics into the industry. And many of those that protest the loudest are usually Taco Tuesday baby boomers living in granite countertop paradise that wouldn’t have a chance affording their home today if they had to pay current prices. But in reality, many are moving out. From 2000 to 2015 more people left California than moved in from other states. The biggest destination is Texas.
The Grand Migration
The math on the grand migration out of California is interesting. Here is the data from 2005 to 2015:
-2.5 million people living close to the poverty line left the state
-1.7 million moved in from other states near the poverty line
This equates to a net loss of 800,000 people.
-Net gain of about 20,000 residents earning $100,000 or more
This post was published at Doctor Housing Bubble on March 15th, 2017.
Follow on Twitter
Recent Comments