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California exodus has far-ranging implications
San Diego Union - Tribune ^ | 3/4/07 | Dean Calbreath

Posted on 03/04/2007 11:16:38 AM PST by NormsRevenge

In the early 1990s, as Southern California suffered its worst recession in half a century, freeways were crowded with moving vans headed to Nevada, Arizona, Utah and points east, filled with people hoping to find a better life elsewhere.

These days, there's no recession. California's economy is growing at roughly the same pace as the nation's. The statewide unemployment rate is at historic lows. There is no major wave of factories being shut down.

But once again, more Californians are moving out than are coming in from other states. This time they're not looking for jobs. They just want a cheaper place to live.

“As places like San Diego are getting less affordable, people are going outside our borders to access cheaper housing,” said Marney Cox, economist for the San Diego Association of Governments.

Hans Johnson, a demographer with the Public Policy Institute of California in San Francisco, says the exodus runs counter to long-standing trends.

“Historically, we've tended to attract more people than leave,” Johnson said. “This is the first time I know of when there's an outflow when the economy has not been in recession.”

Exactly how many Californians are leaving the state depends on who you listen to.

The U.S. Census Bureau, which bases its calculations on Internal Revenue Service data, estimated that between July 1, 2000, and July 1, 2006, 950,592 more people left California for other states than moved in from other states. Last year alone, 287,684 more people moved out than moved in.

The same report said that 77,536 more people left San Diego than came here from other regions in the United States between 2000 and 2005. (County-by-county statistics for 2006 are not yet available.) The California Department of Finance, which bases its calculations on address changes on driver's licenses, gives much smaller figures.

The finance department estimates that during the past two fiscal years, the state had a net domestic outflow of 122,897, and San Diego County had a net loss of 33,199 domestic migrants, including 14,272 last year.

The main problem is not that more people are leaving California, although that's certainly happening. A bigger phenomenon is that fewer out-of-staters are coming in to take their place.

Rex Downing, a real estate agent in Kensington, says he hasn't noticed many people from San Diego moving to other states. But he has seen people kept out of San Diego because of high housing costs.

“There was a doctor who decided not to take a job at a local hospital because she could only spend half a million dollars on a house,” he said. With $500,000 to spend, the woman could not find a house she felt like moving into. Instead, Downing said, she ran into “ho-hum houses” selling at $750,000 or $800,000.

“But in Galveston, Texas, where she ended up moving, she could get a palatial estate for half a million dollars,” Downing said. “Our affordability is way out of range from other regions in the country.”

John Boyd, head of The Boyd Co., a relocation consulting firm in New Jersey, says the cost of housing is keeping companies from moving into the state, since they can't pay enough money to persuade executives to leave their homes in less expensive states and move to one of California's high-priced markets.

“It used to be that companies felt they had to be in California because of the size of the market,” he said. “But that's changing now. A growing number of East Coast companies feel they can serve the California market more cheaply from bases in Las Vegas, Tucson, Phoenix or Salt Lake City.”

Small-growth advocates may welcome this kind of change. Why not let out-of-staters stay where they are?

It's not like California's population is shrinking. Our birth rate is higher than our death rate. And there are plenty of foreign immigrants entering the state. As a result, the population continues to rise.

But the people who are leaving the state tend to be more experienced and have higher incomes than those who are left behind, said demographer Johnson. Their contributions to the state's tax base won't be quickly replaced by the low-paid immigrants crossing the border or the new crop of babies in California's maternity wards.

The domestic inflow of workers coming from other states used to supply a healthy middle-class buffer between rich and poor.

But Johnson fears that if the current trend continues, it could result in the “Manhattanization of the California coast,” with coastal cities like San Diego stratified with an upper-tier of people rich enough to afford million-dollar homes and a lower-tier of workers too poor to consider moving somewhere else.

And if that kind of future is in store, California may have an even harder time enticing out-of-staters to move here.


TOPICS: Business/Economy; Culture/Society; Politics/Elections; US: California
KEYWORDS: california; exodus; farranging; implications
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To: NormsRevenge

It's outrageous what homes are going for out here - some people think it has to do a lot with ARMs letting people get like a 90% mortgage. People get their homes, but also get screwed. People's need to have instant gratification instead of save pushes up the demand curve and therefore price.


21 posted on 03/04/2007 12:50:35 PM PST by socalgop
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To: socalgop
Cashed out of California after living there for 25 Years. Loved it but it was time to leave it. Too much congestion and the steady mocha mix of inhabitants. Move to Arizona and purchased a nice home within my budget with money to spare. Clean air too.
22 posted on 03/04/2007 1:06:55 PM PST by drdemars (Change your thinking - Change your life.)
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To: socalgop
"It's outrageous what homes are going for out here"



They are going for about the same as they are in the Boston area. And they are not mansions. An ordinary home in other parts of MA are going for a little over 300,000. and that is what they call affordable housing.

No thank you! And it's no way to get businesses into any state. Not to mention mandated employee health care insurance for any business that hires over 10 people.
23 posted on 03/04/2007 1:10:32 PM PST by gidget7 (2Th 2:11 And for this cause God shall send them strong delusion, that they should believe a lie:)
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To: NormsRevenge
Image hosted by Photobucket.com will the last American leaving kalifornia, please grab the Flag...
24 posted on 03/04/2007 1:13:05 PM PST by Chode (American Hedonist ©®)
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To: NormsRevenge

25 posted on 03/04/2007 3:55:11 PM PST by Gritty (What does it profit us if we save Anbar province but lose Arizona? – Pat Buchanan)
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To: NormsRevenge

It's outrageous what homes are going for out here - some people think it has to do a lot with ARMs letting people get like a 90% mortgage. People get their homes, but also get screwed. People's need to have instant gratification instead of save pushes up the demand curve and therefore price.


26 posted on 03/04/2007 4:00:19 PM PST by socalgop
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To: MinorityRepublican
What are the political tendencies of the Californians leaving the state? Are they mostly liberals who could not afford the high cost of living? Or are they conservatives who are finally fed up with California?

They are Locust Liberals, just look how rapidly states like Arizona, Nevada and Colorado and even Montana have turn from solid red to purple. A lot of that is from ex-Californians after fouling their own nest now infected these places

27 posted on 03/04/2007 4:13:49 PM PST by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
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