With no letup in home prices, the California exodus surges

Image: MarketWatch

 

 

We’ve said it many times over the last year, but it’s such an amazing statistic that we’ll say it again (And even still it likely won’t be the last time), when factoring cost of living California is the poorest state in the USA.

The middle class is being sucked out of the state.

(From Marketwatch)

Now, in the midst of a deepening housing crisis, thousands of people are following that advice.

Over a million more people moved out of California from 2006 to 2016 than moved in, according to a new report, due mainly to the high cost of housing that hits lower-income people the hardest…

…There are many reasons for the housing crunch, but the lack of new construction may be the most significant. According to the report, from 2008 to 2017, an average of 24.7 new housing permits were filed for every 100 new residents in California. That’s well below the national average of 43.1 permits per 100 people.

The people who have their houses already don’t want the housing supply to increase, which could lower prices and rents. So these current residents get city councils and other planners to restrict any new construction thereby shutting out any competition. San Francisco is a great example of this mentality. Watch the movie Bullit, with Steve McQueen and notice how much late 60s San Francisco resembles San Francisco of today. There’s been some change, but from my outsider perspective, not a lot.

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