Interesting - I would have sworn Honolulu (or even better Maui for higher real estate, gas, and just about everything else) would have made the list.
I live in Maui and you are correct. In the last year some housing prices have doubled. There is no way most of the people who live and work here can afford to save for a down payment or make the payments. I just looked at a 70 year old house on 8k sq/ft lot in a crappy neighborhood for $420k! Gas is $2.65/gal. A gallon of milk is $7. And wages are low here because this is a tourist/service oriented economy. But every day is in paradise!!!!
Gas could be $50 a gallon in HI, and it wouldn't matter. Compared to the rest of us, Hawaians put next to no miles on their vehicles.
I can't believe San Diego isn't on this list. But I think it also takes into consideration the job prospects for the future.
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