The Commerce Journal,Business and Local Businesses
*The Commerce Journal>>>Renting & Real Estate

Why are houses so expensive in California?


I was wondering why are houses in California so expensive and other states are not as expensive as California

Supply and demand. There are a lot of people here and incomes tend to be high.

Its summer year round here. The weather is perfect. There are a lot of high paying jobs. It's a blue state filled with liberals who create, get along well with others, and make room for all kinds. 70% of the working class have 2 year degrees or better. Its progressive economically and politically. All factors for success.

probably cause alot of famous people live there and its more luxurious than other places. and close to the ocean

just stupid people paying for homes they will never own

because investors buy lots of homes and since that, the prices went up.
but also because of the great weather and enviroment.

Location

land locked

Yes, absolutely the basis of pricing is supply and demand. But let's try to summarize what causes the demand and why don't we have the supply.

Demand:
Very good climate year round.
That has given California the lead in agri-business. It produces 13% of the US agricultural produce.
People are attracted to the climate and hence talent stays in this region. You might notice that the good climate, access to the sea and snow within hours makes this entire state very attractive to people who can afford it.
Hollywood, Silicon Valley the biggest revenue generators are located in this state.

Everyone knows real-estate is local. Housing affordability is driven by the amount of money a person can pay for housing after all expenses. The average per capita income is 40,000, about 10% higher than the US average income.

California houses about 12% of US population and most areas are landlocked. Hence that drives up the home prices all the more.

Supply:
Mostly people like to stay where the money and jobs are. LA and San Francisco areas dominate in this respect. LA is already extremely congested. The San Francisco area is landlocked.

In case you compare these factors with any other states, you will understand why California housing is costlier.

I hope that helps.

Tags
  Germany Taxes   Canada Taxes   Australia Taxes   Small Business   Renting & Real Estate   Personal Finance   Investing   Insurance
Related information
  • Who do you send your rent to if your house is going to be in foreclosure?

    You need to keep paying your current landlord until you get written notification from the lender that they have taken over ownership of the property. Do not pay by cash .... check or money ord...

  • Any apartment RENTERS / TENANTS out there? need advice?

    Im a pro at this, lol I have had some bad ones You can get it back if you paid all your rent and left the place as it was when you got it! and if they dont take them to court you will have to pay b...

  • Can the current drug dealers sell their home to anyone right now?

    If they were busted on "cultivation" charges, the house was probably not seized by law enforcement. However, if they were busted on distribution charges, the house may have been or soon ...

  • SECURITY DEPOSIT question?

    your landlord needs to provide you a copy of invoices that he paid from this damage. hopefully you filled out a walk through form when you moved and and maybe took pictures. in most states this l...

  • Do you have to have steady employment to rent a apartment?

    Yes, it usually matters, sometimes landlords will even want proof of your employment. I don't know if they do this with rentals, but you might get someone to co-sign the lease which makes t...

  • Renter dilema?

    No, they cannot comingle your mother's credit record with your own. That you lived with her doesn't mean that you share her poor credit record.

    ...
  • How do I get a sleeping room?

    Run your own ad in the paper. Woman in search of roommates or sleeping room situation. Honest, hard-working and no criminal background. Perfect for person who needs to make a little extra cash....

  • My apartment complex wants to kick me out for loud walking?

    Yeah, they can kick you out if there are too many noise complaints. Have you tried talking to the neighbors? Are they just sleep deprived and sleep later than you do or are they truly unreasonabl...

  •  

    Commerce Categories--Copyright/IP Policy--Contact Webmaster