By Kevin Smith, San Gabriel Valley Tribune POSTED: 11/09/16
California’s
warm weather, sunny beaches and world-class schools have lured people to the
Golden State for decades but rising home prices are turning that equation
around.
Data
analysis firm CoreLogic says that for every home buyer coming into California
another three are selling theirs homes, packing up and moving out.
The trend of
out-migration was also noted in a trio of reports released earlier this year by
Beacon Economics. Beacon noted that 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
has an employment boom with a housing problem,” Christopher Thornberg, a
founding partner with Beacon, said the reports were released. “The state
continues to offer great employment opportunities for all kinds of workers, but
housing affordability and supply represent a significant problem.”
Recent
figures from CoreLogic reveal how much home prices have risen over the past
year. Azusa’s median home price for
September was $449,250, up nearly 20 percent from the year-ago price of
$375,000. But bigger year-over-year increases were seen in such cities
as Foothill Ranch (26.9 percent), Westlake Village (25 percent), La Canada
Flintridge (22.3 percent) and Chino Hills (20.4 percent), among others.
Mel Wilson,
broker and owner of Mel Wilson & Associates Realtors in Northridge, said
many people who are near retirement or living on a fixed income are looking for
a less costly lifestyle. “I see that more in some areas of the baby boomer
population,” he said. “As they retire they are trying to figure out how they
can live but not outlive their money. If you are a boomer and have owned your
home for 20 years or more you will have quite a bit of equity built up.”
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, he said, although property taxes are higher.
Wilson said
high housing prices are also impacting younger Californians. “Some people in
their early to late 20s are living with their parents after they get out of
college because they’re saddled with so much student debt,” he said. “When they
get to their mid to late 30s they’ll get help from their parents or
grandparents with buying a home.” Wilson said California home prices have risen
in part because of a lack of inventory.
