High cost of living discouraging people from moving into California

High cost of living discouraging people from moving into California

California demographers estimated that the Golden State suffered a net loss of 61,121 people to other states in the twelve months ended July 2015, prompting politicians and experts to contemplate what is causing the apparent mass exodus.

While many believe that there is nothing like mass exodus, most of them agree that high cost of living in the Golden State is keeping people from moving here.

Last year, California businesses created jobs at a 3 per cent annual rate, which was the quickest pace in as many as 14 years. The state’s fourth consecutive year of job growth eclipsed employment growth nationally.

But, shortage of affordable housing in the state kept discouraging people. It is no surprise that the state’s major job hubs have very pricey housing too. Half a dozen California regions, viz. Orange County, San Diego, Los Angeles, Inland Empire, San Francisco and San Jose, were ranked by the National Association of Realtors’ twelve least affordable places to purchase a single-family home in 2015.

In 2012, a study showed that consumers’ median incomes in those 6 California regions were 109 per cent of what was considered enough to comfortably buy a median-priced home. In 2015, median incomes in the same six regions averaged merely 80 per cent of the pay required to comfortably afford to buy a home.