Middle Class Exodus from California Appears to be picking up speed

[CaliNative]

Just saw a report on the Channel 8 (CBS) news in San Diego that moving truck rentals for trucks leaving California are far more costly than those heading to California by a factor of several times. The wealthy may still be moving here, and perhaps foreign immigrants, but the vast middle class appears to be priced out, from the costly coast at least. California needs to quickly get its act together and somehow make housing more affordable. If you don't already own a home, and make less than $100K, California may not be for you. The TV show mentioned Texas, Oregon, Nevada and Arizona as top places for California exiles to move to. Even "Okies" are moving back east. "Grapes of Wrath" in reverse?

[Crawford]

California has the second or third highest numeric population growth in the U.S., so if it's true it's losing middle class (a truck rental company wouldn't have any clue) then it's because it's gaining wealthy, because the poverty rate has declined, and economic growth is far beyond the U.S. average.

So if CA is losing middle class and replacing with upper class (probably formerly middle class now upper class), that's a wonderful thing.

[Kenmore]

Originally Posted by Crawford

So if CA is losing middle class and replacing with upper class (probably formerly middle class now upper class), that's a wonderful thing.

[Sun Belt]

Originally Posted by CaliNative

If you don't already own a home, and make less than $100K

There's a lot of this in Calif. I was watching Flip or Flop a few days ago where they renovated a small ranch style house in Garden Grove probably 1200 sqft. The asking price was $650,000 - which is a good deal. During the open house an elderly couple stopped by and said they purchased their house in the same neighborhood in 1955 for $14,000.

There are a lot of "wealthy" [only on paper] Californians that bought their houses in the 60s, 70s, 80s and even the 90s before real estate went to the moon and before the housing crisis. The problem today is millennials won't be able to save up enough or have a high enough income to buy a starter home at these prices until much later in life if ever.

[eschaton]

Originally Posted by Sun Belt

There's a lot of this in Calif. I was watching Flip or Flop a few days ago where they renovated a small ranch style house in Garden Grove probably 1200 sqft. The asking price was $650,000 - which is a good deal. During the open house an elderly couple stopped by and said they purchased their house in the same neighborhood in 1955 for $14,000.

There are a lot of "wealthy" [only on paper] Californians that bought their houses in the 60s, 70s, 80s and even the 90s before real estate went to the moon and before the housing crisis. The problem today is millennials won't be able to save up enough or have a high enough income to buy a starter home at these prices until much later in life if ever.

California's screwy property tax laws exacerbate the situation. In another state the higher property taxes which would come with reassessment would have pushed enough of the retirees out to partially deal with the supply issues. Hell, I've even read that in some cases you can pass on your house to your child without the taxable value increasing much.

[dimondpark]

Originally Posted by CaliNative

Just saw a report on the Channel 8 (CBS) news in San Diego that moving truck rentals for trucks leaving California are far more costly than those heading to California by a factor of several times. The wealthy may still be moving here, and perhaps foreign immigrants, but the vast middle class appears to be priced out, from the costly coast at least. California needs to quickly get its act together and somehow make housing more affordable. If you don't already own a home, and make less than $100K, California may not be for you. The TV show mentioned Texas, Oregon, Nevada and Arizona as top places for California exiles to move to. Even "Okies" are moving back east. "Grapes of Wrath" in reverse?

The cost of outbound moving being way higher than inbound isnt new up north. We've been seeing those articles for years.

[the urban politician]

Thank God I own property and a little bit of land in California. Been boosting my rents (the legal growing of marijuana helps—a tad bit of pot money flows into my family coffers )

[The North One]

Originally Posted by the urban politician

Thank God I own property and a little bit of land in California. Been boosting my rents (the legal growing of marijuana helps—a tad bit of pot money flows into my family coffers )

This is what I wanna do, buy property and just reap the insane rents, I'm sure I could find low maintenance tenants. I'd never wanna actually live there.

[JManc]

I own a very little bit of land in California as well.

[the urban politician]

^ Rent out to pot growers. Best way to go

[pdxtex]

oregon is full. i hear washington, idaho, texas and arizona are accepting applicants.

[Chef]

Originally Posted by pdxtex

oregon is full. i hear washington, idaho, texas and arizona are accepting applicants.

The last time I was in Denver I saw a ton of California plates. They are starting to be more common in Minneapolis now too.

Originally Posted by the urban politician

^ Rent out to pot growers. Best way to go

The California pot market is going to crash in a year or two - way too many growers.

[Xelebes]

Originally Posted by Crawford

California has the second or third highest numeric population growth in the U.S., so if it's true it's losing middle class (a truck rental company wouldn't have any clue) then it's because it's gaining wealthy, because the poverty rate has declined, and economic growth is far beyond the U.S. average.

So if CA is losing middle class and replacing with upper class (probably formerly middle class now upper class), that's a wonderful thing.

If there is stress going on about the prices, some of that middle class is leaving. And they'd be fortunate. Otherwise, some of that same middle class are becoming lower class and homeless at an elevated rate too.

[edale]

Originally Posted by Crawford

California has the second or third highest numeric
So if CA is losing middle class and replacing with upper class (probably formerly middle class now upper class), that's a wonderful thing.

What the actual fuck?

[Crawford]

Originally Posted by edale

What the actual fuck?

What don't you understand?

Why is it "bad" if a CA household goes from under 100k HH income to over 100k HH income?

[Vlajos]

http://www.intellectualtakeout.org/a...ally-happening

The "middle class" is shrinking primarily because people are getting wealthier.

http://www.pewsocialtrends.org/2015/...ddle-class-03/

[isaidso]

Aren't there enough division in US society already? Unfortunately the same thing seems to be happening to BC. British Columbians are being priced out of their own province.

[YSL]

Originally Posted by Crawford

What don't you understand?

Why is it "bad" if a CA household goes from under 100k HH income to over 100k HH income?

Because it's not true. CA grows due to birth rates and people from south of the border. Not exactly rich people.

Rich people (coming and going) are so irrelevant. Rich people in general do not move. Not many people are rich. Nearly all people moving in and out of states in this country are middle-class and below.

CA also has the highest poverty rate in the United States. All of this happened as "poor people" ran away and rich people allegedly moved in.. your theory seems to not be working.

[Crawford]

Originally Posted by YSL

Because it's not true.

Of course it's true. The share of households earning over 100k has risen while the share under 100k has fallen.

Originally Posted by YSL

CA grows due to birth rates and people from south of the border. Not exactly rich people.

No. CA does not have particularly high birth rates, nor much Mexican in-migration in recent years. It does attract and grow upper income households, though.

Originally Posted by YSL

CA also has the highest poverty rate in the United States.

No, CA actually has a low poverty rate. MS has the highest poverty rate in the U.S.

[LA21st]

Originally Posted by YSL

Because it's not true. CA grows due to birth rates and people from south of the border. Not exactly rich people.

Rich people (coming and going) are so irrelevant. Rich people in general do not move. Not many people are rich. Nearly all people moving in and out of states in this country are middle-class and below.

CA also has the highest poverty rate in the United States. All of this happened as "poor people" ran away and rich people allegedly moved in.. your theory seems to not be working.

I believe Mexican immigration has slowed quite a bit to California the last 4-5 years.