One in Four Californians Considering Moves Toward Lower Prices

ap.tbo.com ^ | Nov. 18 2004 | Jim Wasserman

[foolscap]

SACRAMENTO, Calif. (AP) - A fourth of all Californians are thinking about moving - either out of state or just to another town - to bring down their housing costs, a new survey shows. High rents and rising home prices have residents, particularly younger ones, rethinking the value of the mountain views and ocean shores they say they treasure. Of the respondents under 35, for example, nearly half say they might relocate to somewhere cheaper.

The study, released Thursday by the Public Policy Institute of California, found that even many homeowners now see little upside to rising prices that have greatly inflated their property values, with many believing they couldn't afford to buy another house in their own neighborhoods. Sixty percent of the respondents worry their children won't be able to buy homes in their part of the state.

Instead of being optimistic about life in California, a new generation "coming into the owning stages of their lives ... are exactly the people who are talking about moving elsewhere, " said the institute's Mark Baldassare, author of the statewide study. "You're talking about your work force. You're talking about your future."

The survey, the most comprehensive of its kind in years in California, reveals the moving-out sentiment is highest in coastal areas and many are acting on it. Since 1995, according to the institute, more than 350,000 residents have moved from the coast to the less expensive Central Valley.

California's traditionally high mortgage costs are also further discouraging renters, the survey reports. Only one in five who hope eventually to buy a house are confident they can do it.

The results dovetail with findings this month by the California Association of Realtors showing that only 19 percent of the state's households can afford the state's median-priced home of $465,000. That's a 5 percent drop from a year ago. Nationally, the median-priced home - where half cost more and half cost less - was $186,600 in September.

The survey of 2,502 people was taken from Oct. 21 to Nov. 1 and has a margin of sampling error of plus or minus 2 percentage points.

[AmericaUnited]

The beauty of voting with your feet. This type of voting has been going on from the liberal hellholes on the other coast for at least 10 years.

[faithincowboys]

Hahahaha. I hope they do.

[endthematrix]

Re: California Association of Realtors showing that only 19 percent of the state's households can afford the state's median-priced home of $465,000.

LOL!

[LowCountryJoe]

What this article is describing is exactly why I moved from California two-and-a-half years ago - that and because we lived 25 minutes from Berkeley. My wife and I just picked up a Places Rated Almanac, did three weeks worth of research, formulated an escape plan, and then escaped a year later.

I hope that California continues to hemorrhage people...to red states. I'd like to see the electoral votes from California in the below 50.

[SirLurkedalot]

An old friend of mine just bought a 4 bedroom, 2.5 bathroom, house on 5 acres with pool and various other amenities for $127,000.

[SirLurkedalot]

in Raliegh, NC.

[mtbopfuyn]

Ho hum. This survey could be given to group in any state with the same results. Sure these Californians want cheaper homes but are they willing to give up their high salaries? Nope, didn't think so. Housing costs are relative to buyers' income.

[Gaetano]

Were we neighbors?

We left Pleasant HIll for a Central NJ town 5 years ago.

Schools are much better here and we can swim in the ocean (45 minutes away).

I do miss California ALOT in January and February.

[DB]

Well I live in a pretty conservative county, Bush won this county, and home prices has become outrages. I'm in the process of building my new home... There are several factors driving housing prices up. Here's a few of them...

Building permit was $42,000 and it took me 9 months to get.

Water meter was $8,000 (now its $32,000 for the same meter)

The fire department requires fire sprinklers in the house. That adds about $15,000. Note that the fire sprinklers require a much larger water meter (1") and that drives the price up by multiples of a standard 5/8" meter. Mind you, the only time you'll use the capacity of a 1" meter is if your house is burning down. That doesn't matter. You pay for that capacity as if it were used daily.

There is so much construction going on it is very difficult to find skilled carpenters. They get a premium because of supply and demand. So labor costs have skyrocketed. Going rate for a carpenter is $60 an hour and up.

Workmen's comp increases costs dramatical. A roofer for example costs and additional 100% of their hourly rate for workmen's comp payments. For every $1 of labor a $1 goes to the fund.

Material costs have gone up dramatically. Plywood has doubled over the last year or so. Steel has gone up something like 60% over the same time frame.

Endless regulation costs a fortune. For nearly of month of site grading a geologist came out and did soil samples and compaction testing twice a day... That costs thousands.

There aren't enough homes for the current demand. There are so many regulations that is very difficult to build new homes to fill that demand. So prices rise because that is what people are willing to pay to get a home.

[mewzilla]

Hahahaha. I hope they do.

Be careful what you wish for :)

[LowCountryJoe]

...Sure these Californians want cheaper homes but are they willing to give up their high salaries? Nope, didn't think so. Housing costs are relative to buyers' income.

True, but when change in housing costs (relative to other areas) is higher than the change in net income (relative to other areas), the Californian's dollar is spent much more on housing than on other stuff in comparison. And for those people not making a high wage, they're the ones who are wanting to punch out of there desperately.

[LowCountryJoe]

No kidding...I lived right near DVC just off of Golf Club Rd.!

[Gaetano]

Aha ! we were neighbors. We lived right off Pleasant Hill Road between Boyd and Gregory.


Still have not found pizza in NJ as good as Melo's.

[sinkspur]

This survey could be given to group in any state with the same results. Sure these Californians want cheaper homes but are they willing to give up their high salaries? Nope, didn't think so. Housing costs are relative to buyers' income.

You're completely wrong. California's housing costs are the highest in the nation, and few companies make salary adjustments to compensate.

People who move to the DFW area from California think they've died and gone to heaven when they see what kind of house they can buy for $250K.

[UpToHere]

Don't even think of coming to Tennessee. We don't need the kooks.

Al

[trebb]

In the '60s, they began an exodus to Kalifornia for all the benefits like free college, etc. The cost of all that "free" stuff is finally getting so far out of hand that the flow of the tide is reversing.

[THEUPMAN]

An old friend of mine just bought a 4 bedroom, 2.5 bathroom, house on 5 acres with pool and various other amenities for $127,000.





Don't pay any attntion to this remark ... it's not true ... everyone in the south lives in card board boxes .
Unless your rich .. then you get a tar paper shack.

There is no indoor plumbing and the bugs are as big as volkswagons.

STAY WHERE YOU ARE

It is not safe in the South ...
there are snakes
and spiders
and red clay and it's to hot and there is nothing for your children to do except hang out at the pool hall .

so .... stay where you are

(good grief man what are trying to do )

[mollynme]

Your posting reminds me of bumper stickers that used to be popular around here - "Don't Californicate Colorado"! LOL

[SirLurkedalot]

LOL I'm still leaving for NV (Don't worry the South is safe)