Home prices across the major metros in all U.S. regions are shooting up daily. As a result, homebuyers in major metros in California are now heading out in search of homes with bigger spaces at lower costs.
California Is Ranked Third In Outbound Moves
After Illinois and New York, California is ranked third among U.S. states with the highest outbound moves. Nearly 64% of Californians were recorded moving out of the state for other states last year, North American Van Lines reported. These departures are directly proportional to the decline in population in the famous state.
This isn’t the first time that the state has recorded an increase in outbound moves. Between 2011 and 2015, emigration amounted to about 52%. Currently, outbound moves have reached a record high of 62%. Before these outbound moves, California used to have a high rate of immigration. However, the unbelievable rising cost of houses has pushed homebuyers out of the state.
This decline in population growth is unhealthy for the housing market. The real estate market needs stable population growth and demand to strengthen the market. If all these are unavailable, the housing market will suffer ultimately, home prices will also crash, and there would be a low level of building across the state. With low construction, houses wouldn’t be enough to meet demand, causing house prices to rise. This is why home buyers are migrating.
Businesses Are Leaving Too
While it’s popularly known that homebuyers are leaving, businesses are also following the former’s footsteps. California Policy Center reports that companies with their headquarters in the state are also moving out to the South with their employees. This move is influenced by the stability of the job market in the South. Even when the pandemic was at its peak, job securities remained guaranteed.
It’s not just that house prices have gotten astronomically high that homebuyers are relocating; the preference for larger homes has also risen. Homebuyers want more space and lots at a lower price, which can’t be gotten in California. The South is a better destination for that. Hence, the reason for the move.
Top cities in the South homebuyers are relocating to include; Phoenix, Houston, Denver, Colorado, Dallas, and Atlanta. These states are more affordable than California.
Suppose California is to remain a top destination for low-income and middle-class income earners. In that case, they must engage in more house construction to increase inventory and review zoning laws, which restrict certain types of house construction.
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The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com.
Published by Eric Lawrence Frazier MBA.