California Home Prices Are Soaring. Here's Why | WSJ
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- เผยแพร่เมื่อ 3 ต.ค. 2024
- Housing costs in California are rising faster than other states. Between January 2012 and January 2019, list prices for homes rose 85.4%. Here are three of the key conditions that sent prices soaring. Video and photo composite: Carlos Waters for The Wall Street Journal
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After growing up in California, it's sad for me to realize that now I cannot afford to live where I grew up.
Thats why I'm living with my parents while in college, lol i feel like a dope but i'm saving massive $$$
Carter Paulson same
49 other states to pick from.
Make that 46 states. Hawaii, Alaska and New York are also very expensive places to live.
Rick Says
But not as expensive as the SF Bay Area.
As a native Californian, I love living here- but I'm SOO done with the cost of living here!
Same. But I will never move.
You should move this state is fucked and you’re too sheltered to notice it ....
I grew up in LA...but could never buy, mainly because my career path as an academic had me moving around the country...and I could never be sure to be in one place for more than 3 years. I finally made it back to LA...and bought smack dab in the middle of the city. LA is a pretty cheap city, once you square away that issue of housing.
Vote democrats lol
im sure it has nothing to do with allowing anyone from any coutry to live thier on welfare
Boomer:
1. No Education
2. One job
3. Wife doesn’t work
4. Two kids
*Owns a house, two cars, and a boat in California*
Me (Millennial)
1. Two Ivy League degrees
2. Military service
3. Zero debt
4. Wife with two degrees as well
*Can’t afford a decent home yet in California*
Don't live in that dump
M C A crazy right!
Me (Tail-end Millennial)
1. One Ivy League degree
2. Community service
3. Little debt
4. Wife works at home
5. Small Computer business
Bought in 2009, 2012 and 2014...when prices were reasonable..it's too late now mate have to go to Texas or AZ..
@MrHoppers002 Had 3 sold 2 and now it's investing and side projects. Didn't own them outright...still have taxes and bills to pay, still have to make money $$$$
@MrHoppers002 Well on paper it does look really good but I still have to deal with this massive economic decline and cultural shifts that are happening month to month..I had a couple eBay business that were doing incredible from 2007-2016 now they've almost dried up since then with more competition from China and other race to the bottom sellers that have saturated the market.....Now I have to learn new skills to start another business because it's not just biscuits and gravy now..but yes things could be much worse so I am grateful to be born in USA with motivation to do better.
As a real estate developer in Los Angeles I can confirm community opposition to new projects and restrictive zoning is the main reason for the lack of housing supply and for some reason all people propose to fix the issue is more taxes and rent control. I am Persian!
Ppl really should move. Some are going to Nevada and Arizona.
That’s so stupid
I now live in the Boston area and previously lived in the LA area. It is EXACTLY as you state it. The “so-called” housing crunch is nothing more than a man-made zoning problem.
100%.
Don't forget insane property taxes that take away 3/4 of a developers profit
its awesome that the politicians get to use "homelessness" as a platform when they're the ones that caused the mess.
Yeah leftists and liberals lol
@@brianyi2995 the 2-L'S
If you want to blame politicians for high housing prices, then you're obligated to credit politicians for creating an environment that people and businesses want to operate in. You can't pick and choose, buddy.
@@addanametocontinue no actually its restrictions on building that doesn't allow supy to keep up.
Good! You saw it too!
I live in Silicon Valley, our house we bought like 15 years ago, nowadays is worth double what we bought it for, but ~30% of our street is empty houses, bought by international Chinese people and left empty. Sad. Our old neighbors leave and buy mansions in other states lol. I guess that’s the price you pay for globalizing your economy to get more economic growth.
Sounds like homeless folk need to break some windows and squat. California is the next Detroit.
Actually there should be a higher annual property fee on vacant buildings. That can sort out this sort of issue.
@@nomoremarxistbs7410 California contributes to max GDP. It's the best and will remain best.
@@nomoremarxistbs7410 Where are you living?
No More Marxist BS “California is the next Detroit” 😂😂😂😂
High quality materials being used lol ya right all these new houses being built today are cheap. It’s nothing but greed in this estate especially here in the Bay Area.
Seriously!
100% houses are garbage built quickly and then builders 👻
I think my little nieces can build a better home with play-doh
Gone are the days of quality work done by union carpenters, roofers, electricians and such that spent years as apprentices. Things changed with Ronnie Reagan , opening the border , breaking unions, Most of the people working in construction in California don't speak english even, just given a hammer and are told to go to it. Shame because wages in the 80s, pre ronnie, were fantastic in construction, and contractors still made a profit.
Even if materials are cheap, labor is not. Because the cost of living in CA is so expensive, you're not gonna find construction workers here who will work for peanuts. They have bills to pay. In most businesses, even with low material costs, labor is going to cost you the most.
Can confirm windows don’t exist in Texas, hence the low housing prices.
Raj also nothing to do
here in Texas, we still ride our horses to work.
cedric182 shut the Fock up
the big cities here in Texas are quickly catching up with California .
Housing is certainly cheaper in parts of TX but CA has one thing TX can not recreate. Great weather. Year round Moderate temps and low humidity.
Allowing foreign investors to purchase property has been debilitating for locals wanting to buy homes in various parts of the world. Policies may need to be revised in order to protect national interests.
good job I'm tired of hearing it's illegals..like the sheeple argue
In the US EB5 needs to go!
www.latimes.com/nation/la-na-eb5-visa-explainer-20180410-story.html
IN MEXICO CHINESE PEOPLE WANTED TO BUILD A CITY ONLY FOR THEM!!THEY SAID, "A MALL" WITH EVERYTHING INSIDE, SO THEY DO NOT HAVE TO SPEAK OR BE CLOSE TO MEXICAN PEOPLE, OF COURSE IN ONE OF THE MOST EXPENSIVE PLACES IN MEXICO,YUCATAN.
Yes, it's difficult to compete with rich Saudi, qatari, emirati, and Chinese.
@@gloriarascon1550 the chinese mega mall in 2015? thats crazy
Crazy how one of the largest states geographically has a housing shortage.
jeremygates51 a ton of people...
It's because 95% of Californians live in 5% of the state by land mass
KB 24 Exactly. You can find cheap houses on the outskirts of Cali. But everyone wants to live in LA or the Bay Area.
@@alexandercrush yu meen liek seares or mersed?
I’m from LA and I’ve been here all my life. I make well over $100k a year and I can tell you that I’m always on a budget! It’s getting annoying.
hopefully you bought years ago because right, if you have to rent 100k with all the taxes, isn't much.
Same here! A native of LA, married, own a house, make over $100K and I still feel kinda broke/poor all the time😵
Sairve Two what do u guys work at thats u make so much money
well in LA 100k isn't anything. so earn more or move, quite simple.
Are you looking to move? I can help! 💯
As a Real Estate Developer in the Northern California region, I can certainly tell you it’s public opposition, regulatory approvals, and costs that slow down the supply.
Imagine if they lifted those height limits and zoned the land differently. It would a developer's gold rush, but can you imagine how bad the roads and utilities would be overstressed? There's only one solution. Go back in time and buy a house in Sausalito in 1980 and don't sell.
Imagine how insane you would have to be to accept new developments? These people are sitting on Contractor grade SHACKS from back in the day that are now 'worth' $500k+. New development means their property values would be brought back down to earth.
@@f1dog Trust me, NO ONE is itching to move to California, even if there was massive new developments. Largest percentage of homeless in the country, Homeless drug addicts dropping needles and pooping in the streets of most major CA cities. Largest percentage of Welfare recipients in the country, Largest Illegal Immigrant population in the country, Sanctuary state for illegals even if they are violent criminals. Completely through the roof overpopulated. Horrible outdated and crumbling infrastructure. All reasons why California has experienced Negative migration trends for the last 10 years. People can't leave fast enough.
@@swagdaddyify I get where you're coming from. And while the trend is Negative Migration, the fact remains that California's population is growing drastically due to many reasons. The obvious reason many point to is immigration. That said, it's simple pro-creation that is rapidly increasing the population. So while new developments do help the supply, the amount of them being produced on an annual basis pales in comparison to the amount needed. In theory, yes new developments could bring down prices over the long haul. But allow me to make a point. The new home values being supplied by new developments are AT or HIGHER than the existing inventories. If they weren't, developers/investors would have no incentive to risk their capital. Trust me...there is more value to the developer by supplying the market with homes at or higher than existing. Plus, the costs don't give the developer any other option. Additionally, with new housing developments comes additional commercial/retail, which in turn bring in more money, which eventually leads to higher demand for existing residences. Your assessment is correct at fact value, but you have to scratch deeper to realize the real advantages of new developments. Very much appreciate your messages.
@@f1dog An idea I've been advocating for is to rezone Retail to High Density Residential. Brick and mortar Retail is dying and much of the robust infrastructure is already in for many of these areas.
One thing that would help a lot is heavily taxing ghost homes owned by the chinese and other foreign investors. Make it more financially viable for them to rent out those homes instead of leaving them empty and useless
Shaun Dreclin nooooooo
foreigners should not be allowed to buy American homes
do u know how many American buy homes in other countries. how come you don't say anything. but I guess when you have to feel the effect you now complain. so typical American. when America was still much ricer than foreigners have driven up prices too. also why can't they not own them. are you a communist ? its free market man. beside there are already more barriers for foreigners already. @@ingrid44556
dandansfu where did American drive the home price up overseas? I agree, it’s a free market, people should be allowed to purchase what they want. However, this is a very chinese phenomenon. The explosion of wealth by China is unprecedented in history. Nowhere has wealth increase by that much so quickly to so many people. That’s why they cause such a drastic real estate boom around the world. Concerns are warranted. We hope that if the Chinese market ever crash, it won’t choke the world economy anymore than it would.
@@lc9245 Look at the history of some countries in South America for some examples of where American investors have driven up local property prices.
My 7-11 clerk job should cover it.
Until the robots come
I hope you are 19 years old and going to the jc
I often wonder how they make it???
You can afford it with your part time job.
Dont worry my boi we'll raise the minimum wage to help you with that rent.
I bet the prices will keep going up and up
they can not keep going forever if it faster than inflation. At some point whole industries will move away and get big crash.
And eventually the financial systems in California will collapse.
We have an insane amount of Californians moving to our state, which caused the housing market to more than double in the last couple years. Now local natives in my state can’t afford homes here anymore because we aren’t selling our half a million dollar homes in California. So the housing problem in California is also affecting its neighboring states.
Same thing happening in Canada. I'm from Alberta and all the rich people from Vancouver & Toronto have made our house prices become 700+ for an average home.
$4.00 a gallon for gas 🙂
Federico Mandujano it’s going up
What is the price where you live?
Fer 27 4.34 for ampm Chevron and Shell is between 4.30 or 4.45
Fer 27 Coachella Valley it’s at $3.99 at chevron & AMPM the cheapest is $3.68
2.54 in texas
That's why it called California dreams. It's keep us dreaming
I thought it was called the California dream because you had to be asleep to believe it. - Signed, a California resident who didn't want to pay $1,000+ for a 1 bedroom apartment in a 30-year-old building with a shared bathroom for the whole floor.
There are 49 other states to chose from.... Move somewhere that makes sense for you.
C caymer - 😂
It’s called the California dream because California is the fifth largest economy in the WORLD. If you can’t afford the coastal area of the state, move to the central valley. I’ve often wondered why more of the US doesn’t immigrate there.
True
Why are foreigners buying american land and real estate?!
Lots of reasons, but primarily as an investment property, potential hedge against RMB (if Chinese buyer) currency value loss, potential residence if the need to leave China (govt crackdowns) and or for their heirs education.
They're colonizing.
To profit off the American people
@@jonclarkson5911 this is funny since yall are the colonizers
Shaggy𓆏 • 10 years ago lol
I can't afford to live on Earth..
Jay Tree Yes you can. Earth goes beyond USA
@@liiishh5393 FYI.. maybe u can because u have 💰
@Cash Orass what can you do with that 💰? If you have alot? Saving it for what? To let it be used by a bank.. where you have no clue how they use your money.. and if one day they lost your money the government would bail them out?
@GS GS so we can play tug-a- war.
Lol , that’s why I’m moving to Saturn
Crazy rich Asians... Enough said...
If you look at net migration more closely it is mostly lower to middle class people moving out and the rich moving in.
0:00 I’ve seen that stock footage so many times now
Echo Park with a drone
LA native. got outta there 5 yrs ago for college and then work. was blown away by the cheaper, higher standard of living ppl have out here. no regrets.
Let’s make the government bigger and increase taxes and regulations. That will make everything better.
Let's abolish the state and reenact Mad Max.
LOL!! thatz a real knee slapper there.
It always does😂
Spoken like a true democrat
@@dondressel4802 you fail at understanding sarcasm.
I never realized how expensive it truely is here in California until I did my research. Since I like it here, I’ll just finish my education and get a good paying job so I can stay.
Dude, Sacramento. You’re young and if you get a decent education you can earn close to Bay Area money there and you still have hope for home ownership.
Yeah, I moved to California from Texas last year. Have a good paying job and have more money left over at the end of the month. Honestly, I wish I had moved sooner but guess I listened to others who said it was too expensive.
Housing is the new California gold rush.
Yep 👍👍👍
It been like this before last crash anyhow.
Right.. it’ll be stupid to buy today. New home sales tanked 20% in 2018 in the US. Retail is crashing. Buying a home now is buying a dead weight. There are over 25-million homes on the market in the US. There is plenty of supply, buyers are broke
@@truthkeeperfilms salt!
@@truthkeeperfilms Yeah I'm surprised to see WSJ saying that California home prices are soaring. It is yet another indicator that TPTB are preparing for a crash. Those with low down-payment mortgages are already bag holding. Buying anything is 2019 is financial suicide unless you have tons of cash.
Artificial prices caused by housing buy ups from the rich (mainly Chinese), and new construction being blocked by corrupt politicians. It's obvious who benefits from this situation.
They need to implement higher taxes on foreign buyers, like Vancouver did, and overhaul zoning laws.
Nimby's block a lot of houses
I agree that higher taxes on foreign buyers is needed, however it's the current homeowners that are blocking new construction, not politicians. The current red tape that exists are due to the voters. This is a huge problem in San Francisco, mainly due to environmental and cultural concerns, both of which make my eyes roll. They want cheaper homes, but they don't want new homes.
Higher taxes did NOT help Vancouver.
@@parsizaban1 Well, Taxes on foreign buyers did helped, what is your source ?
@@Reddfrogg Vancouver is still unaffordable to professionals isn't it?
Have lived in CA all my life. We got very lucky for being in the right place at the right time when it came to real estate. Without this timely luck, we would be struggling to buy. Started from a $136k townhome in SoCal in 1987 to a $1.8M in Silicon Valley with only a $244k mortgage. I'm afraid our kids and million others won't be as lucky.
We won’t
Yeah we will not be but what can we do?
yea thanks boomers for creating this wonderful economy for young folks to strive in, we can definitely afford a million dollar 3 bedroom home on our salaries
Remember, if you flee California, you fled to get away from liberalism, not bring it with you. Sincerely, Arizonan from California.
Uhhh, Arizona is pretty liberal too. Sincerely, Californian to Arizona.
Face Plant no it’s not
Yeah sadly California Commies are running here to WA State and its going down the tubes.
Thank God the 2nd American Civil War will clean up these parasite traitors.
@@marioplayer1410 No it's not.
I hope they come to Texas,Legalize Marijuana and stop guns owners I hate this state ,Ironicaly I'm from California.
In 2011, a sheet of ½” CDX ply was $8 dollars, today that same ply is $23 dollars. Too
much asset inflation from three rounds of QE, ZIRP and speculation.
Absolutely. Not to mention current inflation do to lockdowns .
Moved from California to Iowa. Best decision ever!!!
Imported TV - Yay 😀
Sold my house in San Jose for triple. Became an instant millionaire. Wish I had bought more property in the mid 90s.
That’s awesome!💰
hopefully u still have other properties, that million won't isn't worth much in today's society in terms of buying a house in san jose
Taylor Craig Newbold -
I have numerous rentals in the Peninsula, won’t sell ever 🤑🤑🤑🤑
Rents rising and will always pay stable cash flow. I don’t understand why these techies pay exorbitant amounts for my old houses.
But I love em 😍🥰😘🥳
Great for you
Too much traffic too.
That’s what the CA gov wants...high real estate price, more property tax revenue for the government...
Wouldn't the property taxes from more residents/homes offset that?
@@gormeroth to build more housing you gotta deal with local government and their zoning laws...state government, who collects bulk of the PT rev, is powerless in this regard...
Aur0ra12 exactly. Stupid ppl keep voting democrat and get these problems. Then MOVE to texas or Nevada and STILL vote democrat
@@Alejo__ i assume you are republican but in california is supply and demand capitalism at its best we had republican givernors and some counties are republican like orange county and nothing changes is just supply and demand i think weather also plays a part
That's weird to say, property tax per capita in California seems pretty average 🤔
You forgot: real estate speculation artificially inflating home prices, competition with international investors, and greed
It can also be said that inefficient land use has plagued the housing market. In discouraging higher-density housing, all that is left is to push development away from important job centers, creating urban sprawl. This is part of the reason why California has become a car-dependent culture, as lacking density has led to greater reliance. Reversing urban sprawl could provide relief for housing shortages, as well as reduce dependency on highways. Increased funding for public transport could help too. This all really depends if the state were to take initiative on these issues.
Welcome to the club California .............Sincerely, Vancouver, BC
Christopher A we’ve been here for a decade now
Rich are slowly moving the undesirables out.
You mean Hongcouver, BC
Both have one thing in common.
Chinese foreign investment. Needs to be banned
@@lefthanded5473 Partly right. And socialist leftist Democrats.
Anyone else notice how wherever "Asian investors" show up housing skyrockets within the next 5 years after?
They know how to make money for themselves
Dirty money from crime.
@@thomasmulhall4873 CCP money laundering
@@GuitarsAndSynths Yep, corrupt Chinese politicians who took bribes want a place to hide their money, hence they buy houses all over the west.
It’s China fault again!
In New York, our house that we own is around $130,000
NIMBYs
That’s 95% of it
I live here and have tried to engage in local politics and it's really opened my eyes to what NIMBYism is. Very few people admit they're a NIMBY. Everyone "likes" more housing, BUT... what about traffic? What about schools? What about athletic fields and parkland surrounding the schools? What about displacement? What about gentrification? Maybe we can build new stuff without tearing down any old stuff. Maybe we can tax developers $100k per unit to offset their impacts, and then ask 20% be set aside as low income.
someguy gentrification is largely due to property tax. Should be switching to a land value tax. No reason my property should be taxed more because the surrounding area has been more developed. This would also encourage more density.
@@uhohhotdog I don't see how a land value tax would prevent you from being taxed more as the surrounding area is developed. That increases the undeveloped price of your land.
someguy buildings don’t add to the value of the land so someone building a fancy home next to you doesn’t change the value of the land.
@@uhohhotdog The value of the land increases mainly due to zoning, at least in incorporated areas. Increasing density is as much a matter of zoning as construction. LVT does not protect Edith Macefield.
Surrounding activity does affect the value of the land too, just not as much. If the surrounding area is more attractive - restaurants, entertainment, transit, whatever - the land is more attractive.
My grandparents bought a house in the 70s it was about $40,000 and now it’s worth $750,000
Why do we allow Chinese to buy our land when we cannot do the same in their country. If I was governor I would put a stop to foreign real estate buyers
Why did the Indians let the europeans on their land when they did not have to.... oh wait.
How about buying a nice 3 bedroom home in Tibet?
You can buy chinese real estate as a foreigner in china .
@@thomasmulhall4873 Chinese buy our real estate to hide their money from CCP
You forgot or didn't think of: people 'flipping' properties also increases the overall cost of housing. They fix a house up , double the price, and suddenly they price of surrounding homes goes up. That brings the market price of rentals up too, because the same thing happens to apartment buildings, or the landlords say I should be getting that much in rent too, because others are 'it's the going rate', without improvements to the property.
Supply and demand factors combined with overregulation, high taxation etc.. That's why house prices are up.
Don't worry, the earthquake will settle the problem.
I don't have a problem. If you don't like it leave.
There's a reason for building codes. To withstand earthquakes
A greater threat to the economy is your education level
Michael VR no, it’s because of idiot racists. Sorry bout it.
You have a murder like mentality, creep!
Today in one of my engineering courses, we were asked where we wanted to end up. Around 50% of the class wanted to move to California when they graduated. I live in Louisiana... I would imagine we’re a contributing factor. I’d pay double to move away from this place.
@Anton Zuykov I hear that argument, and I don't care about it at this point. Even if it were triple, which it isn't unless I'm trying to live in the bay area, I'd gladly pay. I'm done with Louisiana. The people here will never learn. The education budget gets slashed consistently. The ITEP property tax incentives are immoral and unsustainable. The economy depends upon the chemical industry. I've done what I can to make it a better state for everyone, but it's an area of the US that will never learn from its mistakes. People here are left out to dry. California might be expensive, but it cares for its citizens. That's more valuable than money in my personal opinion. I'll live in a shack if I have to.
Most of California has decent and tough weather, this means that nearly 90% of California live within 75-miles of the coast....there's plenty of land here, in fact, there's too much land and homes in the Barstow, California ( 125-miles East of Downtown Los Angeles) Are $60K to $130K tops.
You must live within 35-miles of the Pacific to get really good weather, if not it begins to get hot in the summer.
Julian Martinez I say the same. Much of it is harsh desert so most live near sea to keep comfortable.. go inward and it is like ghost town
who wants to buy a home 150 miles away from stores in the middle of the desert!?? no one!!
Houses in california must have windows... OK no wonder why it's so expensive 🙄
energy efficient windows. dual pane with argon gas in between. vinyl frames instead of cheap metal.
@@kurtlowder3276 Vinyl is more expensive than aluminum???
Title 24 energy efficiency
no insulation tho
That's just standard Wall Street Journal for you... The real problem is lack of housing supply (which the Journal does mention, to be fair), caused by nimbyism and ultra-high demand. Government regulations, like the ones requiring certain efficiency or living conditions, only affect living costs marginally, especially when compared to the main problem of housing supply. But it just wouldn't be the Wall Street Journal without giving a bit of a dig at progressive economic policies.
Why are people tripping? just save your money till the next ression.
Yea housing prices have never gone straight up forever. A recession is going to happen eventually.
@@eyeislet2170in the last ression we had Madison's on the market for like 700k🌴
A housing crash would be a nice thing for those that are buying.
The problem with this logic is in a recession, people tend to lose jobs, so, even if people did wait around, they might not even be able to get approved for a mortgage. You're talking only to speculators trying to time the market.
@@WheresTheAnyKey1 No I'm not. Also I'm not talking about mortgages.. I'm talking to home buyers not home loaners... If you got the money your chilling...also if you have great credit you'll be ight
Yea I left to Arizona...
Im stuck here...
Ashton :(
AR-MD where's a nice cheap city to move to in Arizona ?
no more homes. the traffic sucks
Im guessing you own yours?
@@samleonard525 i dont own a home, im definitely working to buy one, but i drive for work and im sick of the traffic already its annoying
I can buy alot of land and be debt free in other states.
AZ would be a good state to do just that along with a few others!
Like Texas
@@Valhalla_Heathen I'm deciding on whether I should permanently move to TX or AZ
I am a developer in So Cal and just got approval to build a 12 unit multi residential project.....My cost of permit and other city fees? $1,050,000.00!!!!! Yes, no kidding, $87,500.00 per unit in fees alone....and you wonder why housing is expensive here? But I still love living here and don't want to be anywhere else.
So are you still going to build?
@@mrmackey8956 No more residential projects
When people talk about California they think LA-Bay Area, areas for upper middle class 100k is nothing. The rest of California is much like the rest of the country. Steady growth and median home around 300-350. And you can still find a good job.
now do a video on how ridiculous the California taxes are.... and yet the state itself is in huge debt.
Did you research that fact or are you just coming up with random statistics? Because California is expected to have a $9 billion surplus this year.
@@TnRinVegas ... is that a new thing? Overall the state is in debt.
@@TnRinVegas sorry Rusty, over a trillion in debt just cali alone... californiapolicycenter.org/californias-state-and-local-liabilities-total-1-5-trillion-2/
@@Sir...... do you not understand the difference in deficit and debt? BIG YIKES.
As an econ student we study housing prices across the country and we run analysis on those numbers as we learn how to crunch numbers. California is always a crazy outlier!
I think it's a simple supply and demand. Too many people wanna move to California so prices are higher
@@MrWalker1000 Very true! And the supply lacks in many areas also raising the price!
California is insane...Just leave people.
Easier said than done when you pay in state tuition here.
@@directorbeau Both in and out are a robbery, that should be no fees at all.
Yep, learned that working for a developer too. A lot of opposition to new construction so zoning and height limits stop pretty much everything. People who live there don't want more people there so there house prices can remain strong. They really don't want more stress on the local roads. Plenty of room in Texas though.
A lot of Chinese buyers are rich and they buy with cash.
@owen coleman Really? I didn't even think Chinese officials may be corrupt
Yup, it true. I'm from L.A.
@@aznguymetal oh can you please talk me about life in L.A. a little bit? Just it's so unrealistic for me to go to this corner of the Earth.
@@jeffsp1389 www.latimes.com/business/la-fi-chinese-property-sale-20180401-story.html
deeper reason is that not enough new houses/buildings are being built because of zoning laws. When you have shortage in the supply, guess what will happen?
That is why rent was not an option to me. Bought a home at 100k 15 years ago. The house is now worth 600k :)
Teddy Li nice!
awesome for CA homeowners and investors!
Yup!!!!
ReasonTV has a good extended explanation of this
Lack of habitable land is another reason. California is chock full of deserts and mountains, terrain that cannot be developed. Here in the South Bay of L.A., where I live, we're full up. Just about every parcel of land in the South Bay has a building, road or park occupying it. The only way to increase housing here would be to build skywards.
Each country has its own reality and needs...
Anyway I just want to show these numbers for you to compare:
People living in rented homes
US; 36.6%
Brazil: 28%
More people own the house where they live in Brazil than in the US.
My rented cookie cutter home in pasadena is made of “high quality material” 😂🤣😂🤣🤣🤣🤣😂🤣🤣😂🤣🤣🤣😂🤣🤣🤣😂🤣🤣😂🤣🤣😅
May be that refers to new construction
Right? Lol
Are you looking to make move? I can help! 💯
And the fact that wages have remained stagnant while inflation still rises has nothing to do with it. Oh no thats not it at all.
Inflation in America is not rising it's still at a 1%- 3% stance. Just saying
you are exactly right, wages in the 70s and80s for blue collar type workers , truck drivers, landscapers, paving co. employees. construction employees , heavy equipment drivers all made more money in actual dollars then now, take into account inflation etc. real wages ( buying power) is 1/2 of what it was while everything is more expensive. The other problem is people have no self discipline and don't save, i phones, i pads, apple computers , internet, new cars, restaurants, starbucks,. going out always shopping and on line shopping , all necessities of todays people ha ha , is why they don't save. between the two , is the reason people aren't buying.
As a Cal native i love were i was born and grew up my parents and fam members who purchase homes in the 80s and early 90s pay like 80k 100k for a house and now my generation as adults we are getting rip off this ridiculous rents and home prices what's going in ca
WSJ Staff, As a four-decade resident of Calif, I agree with your analysis, but you left out dirt-cheap mortgages courtesy of the Fed.
The resi market smells a lot like 2007 now, especially if foreigners sell off their spec positions.
If the feds were the only problem, it be national issue not just a CALI issue. Housing is still affordable in texas
California is not just San Francisco and LA
Exactly Right.
I moved to California from Florida and for the longest time I could not understand these housing prices. This video helped explain a lot of it. Thank you!
Truly unfortunate California Coast is so physically beautiful I’ve wanted to live there since I was a kid. They ruined everything with their unfair laws
Don't blame the politicians, blame the idiots who vote for the laws that ruin this state. We recently tried to strike down the "gas tax" that is screwing us sideways, but guess what happened? The dumb fucks in California voted to keep the law, which will keep increasing the tax for the next few years before it caps.
if they didn't have the laws, the coast wouldn't be so beautiful. Just with all the illegal immigration growth has been crazy. Take Watsonville Ca in 1968 there were 13000 people , nicely diversified. 60% white, 30 % mexican , with chinese, japanese, philipino and a few blacks. Now there 55000 according to Wiki, but in reality 82,000 if you include illegals and families. with probably %80 mexican. Now if there were no laws this little community of broken down roads, over crowded schools would probably have 100,000 people
There is a piece of land here in Sacramento that a movie theater and hotel were torn down probably over a decade ago. Literally right next to the highway and a huge mall. I've scratched my head as to why a developer wouldn't or hasn't built a huge apartment complex here. It's like a 10 minute drive to downtown Sacramento were there are a ton of state workers.
In California: building permits are more than twice as expensive as the national average, it also takes longer to get approval to build new homes, we also have much stricter environmental laws that prohibit new builds, we also have a labor shortage in the construction industry which slows things down and increases costs. In short: government keeps adding regulations to improve things, but it actually makes things worse.
There's no shortage of workers in the construction industry. The unions are recruiting workers as fast as they come , but thay are also demanding higher wages.
No mention of excessive taxes on business and individuals. lol.
that actually might help property prices since it would lower competition.
Yeah they're not telling the whole truth in this video. Lol
@@vagabondwastrel2361 Yeah, lower competition would occur because nobody will be around to compete or live in the houses. Excessive taxation, which they've done in the housing market across the board inclusively of the state itself in a variety of sectors, doesn't help reduce anything. It's actually hurting their housing market. People leaving, along with business, will allow them to lose revenue which will increase losses overall. Perhaps the mass exodus and homeless people isn't indicative of the issues for you. As a basic rule, you don't impose excessive taxes to force people to leave so you can decrease property prices. That's not proper ecomonics, that's foolishness. I hope that comment is rooted in sarcasm, otherwise your economics are tragically deficient. Lol
California had 2 labor forces.
Legal and illegal employees.
@@DarthBalsamic You are insinuating a chain of causalities from a statement that never gave an explicit premise minor. At the end of which one observation, becomes indicative proof, virtue of cause causality chain in permutation of ever speculative probability.
But since we can argue free of any correlative significance. Beginning with your first sentence, _if nobody is around than nobody will compete for that real estate…_ why is that then not the case, why isn't the housing market hurting? Because your entire argument is that California actually did exactly that, so your predicated logic in the first premise isn't _"would"_ but *must* have occurred, yet it did not and does not.
And why would it? One doesn't need to like the turnover rate however so long those that can't afford are being replaced with albeit fewer that can. Californias tax base of wealthy people is ever more drastic rising as wealth disparity in the country goes up and an ever richer set of people is in the market for a House.
On a positive note though, at least there is no case by case tax incentive solicitation. The tax might be high but you don't end up being coerced into cross subsidizing some occupational therapy by Foxconn.
Yes. A polemic.
We need to start allowing micro studios like new york and advance underground metros for transportation.
It is simple if you can’t afford then move out. There is whole bunch of affordable place to live and work in the US.
Mae Mae _ EXACTLY!!
Mae Mae texas
C caymer - Life’s not that easy bro. No one will just give you things. Gotta work for it.
you think its as simple as that? right wing idiots....
In 1996 and 1997 HUD did a survey and found that on average home owners were better people. They generally paid their bills on time, paid their taxes, didn’t involve themselves in crime, or drugs, earned more money, and so forth. This was in comparison to renters. So the idea was to make everybody a home owner, then they would become more responsible and be better citizens.
Weather is great here
Emphasis on taxation, fees, costs etc. by corrupt government, the foreign Chinese buyers, Real estate investment trust buyers, and house flippers.
Problem: too many people, not enough homes
Solution: let builders build more homes
Nah that's too easy for California politicians
I know this is a joke but the problem is the workers not wanting to build cheap houses because it is not as profitable
The problem people who already own homes LOVE the fact that the price is going up and will vote against building more houses. Plus a landlord has the right to vote in any city in which he/she owns property. So people who own multiple properties get a bigger voice across the state.
Or get rid of some people somehow.
For the Inland Empire aka the IE, it is the affordable housing for OC and San Diego, the builders charge what a condo cost in the costal areas. The developers build a 3500 sq ft compared to a 1100' sq ft condo in the OC. They could build them cheaper in the IE but they want to WOW the starting families.
I knew a dude that lived in a fairly desolate area in northern California. His rent was $1,200 a month and he lived in a run down two bedroom home just a bit bigger than an apartment. Maybe 800 square feet. The reason the rent was so high was because landlords knew tenants would be growing weed on the property and making money that way. Landlords want a cut of it.
Sounds like Butte County, lol.
Currently right now in LA country we have loads of homes heading for foreclosure and the ones that aren’t are very slowly coming down in value.
Good. The next housing crisis will present an opportunity to buy.
Tell us something we don’t know already.
There is enough sperm in one single man to impregnate every woman on earth.
Buying in the ninety was more chances of finding an affordable one . House we’re going for 80k... smh
Remove the Chinese buyers and the prices come crashing. Look at Vancouver.
mansees Can we do that? Should we? 50% foreign investment and they leave a lot of houses sitting unkept and vacant...
The SJWs will find a way to argue that this is racist
The median price of homes currently listed in Hawaii is $629,000. An Oahu family of four earning up to $83,700 was considered low-income. The median household income in Hawaii is $77,765.
3 reasons why California is in this mess
1.) Foreign investment: Many Chinese real estate speculators are buying the properties just as a gambling tool. They know that if they buy in the large cities, the price will go up. Rich Chinese people (Hong Kong in particular) have so much money that they dont know what to do with it. A few of them realized that investing in foreign lands and then selling them for a profit was a safe bet. Eventually more and more people followed the stream, and more will keep doing so as more people are making money off of it, until the cards topple one day (what goes up must come down).
2.) The sharing economy: AirBnB has turned out to be a huge thing nowadays. People are buying the property just to rent them out temporarily, doing what is minimal just to make a few dollars, meanwhile, eventually a few complaints come along, the city cracks down on it, and the seller cant use AirBnB anymore, it gets sold and very little money is made, but people keep doing it because everyone wants to work for the mega-corporations no matter how many people have told about their bad news stories.
3.)The Global migration crisis: Go where you can get the best deal is the name of the game when it comes to becoming a refugee. It used to be about where you were safe was the way to go. Today, refugees go where they want to go, and do whatever they have to in order to circumvent the rules governing the status of refugees. In Europe, they are slicing their fingers (so they cant get a proper fingerprint done) and lying about their identity just so they can get to Sweden, Germany and the UK as opposed to Greece and Italy. The same thing is happening in North America. Despite the fact that Mexico is better than their country of origin, and Mexico has even told them they are welcome to stay in Mexico, they are declining and going to the USA, and they arent just going to the USA, most of them end up in Tijuana at the San Ysidro Port of Entry, in spite of the fact that Brownsville, Texas is a lot closer than San Diego, they are going to San Diego. Why? Because California is a "Sanctuary state" and LA and San Francisco are "Sanctuary cities," so the ICE officers cant get into those cities.
2013 I left California. The best decision I ever did.
Why??
Here's a solution, don't live in California...
halmrkcrdz2 hard place to stay away from
But the jobs are there
Would rather stay there or Mississippi
Where else would be as good as CA tho
People flock to rich places for better paying jobs. This happens for thousands of years.
The most expensive part of housing? Government regulation!! There are so many regulations and causing so many YEARS of wait time make it impossible to build new housing in many areas. Laws like MANDATORY solar panels on new housing after 2020 makes the crazy expensive housing more expensive.
That's only part of it
liberals ruin everything
Today, 4.5 years later post-COVID, those prices look quaint in California as the housing pressures have only grown for the working middle class.
Inflated company valuations = Inflated employee salaries = Inflated housing prices. This is unsustainable and can only end one way.
They also voted to increase their own housing prices at least three times during the midterms, presumably because they didn't know what a bond was
Ask Tokyo for help. Similar regulations yet they're much more organized and cost effective.
Most Japanese houses are built to last 30 yrs then they're knocked down and rebuilt. Their value falls with time.
Are they soaring? I feel they're flattening...at least in LA.
Fantastic price WSJ you never disappoint. I’ll discuss this soon on my real estate 🏡 youtube channel I’m a local Californian and invest and developers in Southern California and document it on my TH-cam channel!
There is a very simple cure for our bloated housing prices in the USA.
1) Reduce government over regulation to reasonable levels. There is no reason to force contractors and owners to satisfy regulators for every minute detail in a project.
2) All investment ownership of single family homes must severely restricted or banned outright. Banks and commercial rental interests never have a legitimate interest in owning large numbers of single family homes. Some localities already bar absentee ownership of single family homes. The rest of the USA should follow suit. When a home is foreclosed on, the foreclosing entity should have at most a year to sell the home. Some exceptions could be made for those who live in a home and move temporarily, want a vacation home, or wish to save a family home for their children.
3) No more favoritism should be allowed when government entities sell land. Developers should not be allowed to horde cheap government land for themselves. Adequate public notice should be required for a sale of government owned land to be valid. Small parcel sizes should be mandated to enable ordinary members of the public to make land purchases for their own home building without having to pay bloated costs to developers who are able to horde land thanks to political connections.
4) Under no circumstances should foreigners be allowed to purchase American real estate for their absentee investment purchases. Land ownership in the USA should be restricted first to citizens and then to green card holders. All others can rent our land from US. This type of foreign investment does nothing to bolster the overall American economy. Foreigners can invest in commercial apartments and productive real estate ventures such as factories.
love how this video literally teaches nothing new
Prem's Writing I'm learning a lot since I'm not from Cali
True, but there are people who are not aware of what's going on and why. It's still a good video.