Home to Silicon Valley, the life sciences cluster in San Diego and Hollywood, California has emerged as one of America’s more rapidly expanding economies. Still, a recent study by CoreLogic finds that for every homebuyer coming into that state, there are three Californians selling their homes and moving elsewhere.
As reported by CNNMoney, California’s housing market is one of the nation’s most expensive, with a median home price approaching four hundred and thirty thousand dollars. Prices have risen seventy one percent since twenty eleven. Of the five priciest housing markets in America, four are in California, with San Jose topping the list with a median home price of one million dollars.
Despite California’s strong economy, incomes haven’t kept up with home prices. As a result, the Golden State has been losing residents for years and could be facing a shortage of middle wage workers according to a report released by Beacon Economics.
To render their lives more affordable, many families are trading in life near beaches and movie stars for more affordable housing in places like Arizona, Texas and Nevada. The solution may lie in public policies that induce developers to supply more affordable housing.
