Tuesday, November 22, 2016

Californians Fleeing High Cost of Housing

Submitted By Christine Schlittenhart, Sierra Pacific Real Estate

Recent real estate data shows that for every home buyer coming into California, another three are selling their homes, packing up and moving out. 625,000 more U.S. residents left California between 2007 and 2014 than moved into the state. The vast majority ended up in Texas, Oregon, Nevada, Arizona and Washington.

The search for more affordable housing is sending low and middle-income workers out of the state, while higher-wage workers continue to move in, which argues against the theory that high taxes are driving people away.

California is experiencing an employment boom with a housing problem. The state continues to offer great employment opportunities for all kinds of workers, but housing affordability and supply represent a significant problem. Home prices and rents have been rising steadily for more than four years.

Many baby boomers are moving to Nevada, Arizona, Idaho, Georgia or North Carolina where home prices are considerably lower. Still others are relocating to Texas. Home prices are cheaper there, although property taxes are higher. (My last 3 sellers moved out of state to Idaho.)
High housing prices are also impacting younger Californians. California home prices have risen in part because of a lack of inventory.

From 2005 to 2015, permits were filed for only 21.5 housing units per every 100 new residents in the state. That put the Golden State second to last behind Alaska, where only 16.2 housing permits were filed for every 100 new residents.

Are you ready to take the plunge and move out of state? Call on one of your local Meadow Vista Merchant Realtor's to get Listed and take advantage of our large collection of buyers.

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