Millennials simply can't afford to live in OC (Orange: oven, trees)

[1AngryTaxPayer]

Originally Posted by LuvSouthOC

The point I was trying to make is that, overall, OC was the epitome of a middle class area. Sure now it is a place that it out of reach for most Americans, but that doesn't mean that it was like that before. Jobs, population growth, immigration, development, fame (media), desirability -- all conspired to make it highly sought after. Many areas were very solidly middle class in the same way that places in the i.e. are today. Bit-by-bit middle class areas became upper middle class areas and the immediate coast went from middle and upper middle class to upper class. I witnessed the same thing in Pacific Palisades and other places in LA.

To be honest, I feel for the millennials. Their situation is even worse on average than it was for Gen X (my generation) at the same time period in our lives, and boy was it bad for us! Gen X was the mcjobs generation.

Boomers are not at faulty for having wealth and most worked for their wealth, but growing it was easier on average than it is now in that a normal income would sustain them. One other thing that is never discussed is that boomers enjoyed THREE decades of falling interest rates and all of the property increases that stem from that. That era is long gone. Buying a home now at these high prices is staggering for most and will very likely NOT yield the home price increases seen in the past, due in large part to expected and continual increases in rates.

Actually the generation before us, maybe even two were the ones that gobbled up vast amounts of free or dirt cheap (pun intended) land. After that the game was on to own at all of the coasts. It's much harder to create wealth away from the coast now. One thing for certain is there are still about 45 States where one can purchase a home on the cheap it's just that today's urban settlers don't want to live there. I can telecommute so I could live wherever I want. It's just that my wife won't let me

[payutenyodagimas]

Originally Posted by 1AngryTaxPayer

there are still about 45 States where one can purchase a home on the cheap it's just that today's urban settlers don't want to live there.

you can buy cheap land by the hundred acres in Antelope Valley but everybody wants to live by the coasts

[Electrician4you]

Originally Posted by 1AngryTaxPayer

Actually the generation before us, maybe even two were the ones that gobbled up vast amounts of free or dirt cheap (pun intended) land. After that the game was on to own at all of the coasts. It's much harder to create wealth away from the coast now. One thing for certain is there are still about 45 States where one can purchase a home on the cheap it's just that today's urban settlers don't want to live there. I can telecommute so I could live wherever I want. It's just that my wife won't let me

You can buy acres and acres of desert land out in Adelanto area. Or in Salton sea area. Cheap too

[LuvSouthOC]

Originally Posted by 1AngryTaxPayer

Actually the generation before us, maybe even two were the ones that gobbled up vast amounts of free or dirt cheap (pun intended) land. After that the game was on to own at all of the coasts. It's much harder to create wealth away from the coast now. One thing for certain is there are still about 45 States where one can purchase a home on the cheap it's just that today's urban settlers don't want to live there. I can telecommute so I could live wherever I want. It's just that my wife won't let me

Well since you brought it up, let's explore that. Land was cheaper closest to the ocean. No one wanted it for a variety of reasons. They wanted to be a few miles inland. Yes the folks who bought up this cheap ocean front land were destined to make a pretty penny. Newport Beach is well known for having had land available for a dollar an acre.

Newport Beach Jetties in California

[expatCA]

Originally Posted by LuvSouthOC

Well since you brought it up, let's explore that. Land was cheaper closest to the ocean. No one wanted it for a variety of reasons. They wanted to be a few miles inland. Yes the folks who bought up this cheap ocean front land were destined to make a pretty penny. Newport Beach is well known for having had land available for a dollar an acre.

Newport Beach Jetties in California

When agriculture was king and then steel mfg, CA was not really on the radar. But after WWII it was and aviation, oil production and Hollywood drew people. Now what people want for work and pleasure is drawing them to the coasts or as near as they can get. A lifestyle and employment change and not the fault of any generation. Now if you love living away from people, 4 seasons appeal to you and do not mind a middle class job there are many places all over the Country where you can live, but if you want high pay and mild weather and all the amenities, you are limited in where to live. Life choices have driven the prices up not any "generation".

[expatCA]

Originally Posted by LuvSouthOC

The point I was trying to make is that, overall, OC was the epitome of a middle class area. Sure now it is a place that it out of reach for most Americans, but that doesn't mean that it was like that before. Jobs, population growth, immigration, development, fame (media), desirability -- all conspired to make it highly sought after. Many areas were very solidly middle class in the same way that places in the i.e. are today. Bit-by-bit middle class areas became upper middle class areas and the immediate coast went from middle and upper middle class to upper class. I witnessed the same thing in Pacific Palisades and other places in LA.

To be honest, I feel for the millennials. Their situation is even worse on average than it was for Gen X (my generation) at the same time period in our lives, and boy was it bad for us! Gen X was the mcjobs generation.

Boomers are not at faulty for having wealth and most worked for their wealth, but growing it was easier on average than it is now in that a normal income would sustain them. One other thing that is never discussed is that boomers enjoyed THREE decades of falling interest rates and all of the property increases that stem from that. That era is long gone. Buying a home now at these high prices is staggering for most and will very likely NOT yield the home price increases seen in the past, due in large part to expected and continual increases in rates.

You are correct. Some of the reasons it grew were being a way from the LA smog, in a less expensive area but a commute to LA for work was not bad and with the growth in population due to many manufacturing jobs appearing in say OC and .... minimal illegal immigration issues so the average jobs were taken by Citizens who could live on the pay. Be aware that falling interest rates were not really an issue as I have paid well above the interest rates in my younger years and I am a Boomer. Remember to fall they had to be high and OC as an example grew right through both high and low interest rate periods.



Is it worse for Millennial's, yes, but it is no ones fault, it is what happens when populations increase and technology begins to dominate the job market and life style. Land available limits growth and raises prices. Remember Boomers did not choose to be born when they were anymore than millenial's did, they just coped with what they were faced with, and some better than others as there are also a lot of poor Boomers.

[CaliRestoration]

Originally Posted by Electrician4you

You can buy acres and acres of desert land out in Adelanto area. Or in Salton sea area. Cheap too

Why not just move out of California?

Salton Sea is an acidic festering pool of pesticides and dead fish.

The high desert is all right except for the high crime and meth labs.

[pacific2]

This is interesting. Some are saying that California's generally high home prices are "rational" when factoring in the natural "amenities" this state has to offer, including climate. So, barring a recession, trade war*, or other calamity, don't expect a large dip anytime soon.

California home prices called ‘rational’ when climate is factored in
https://www.ocregister.com/2018/06/24/california-home-prices-called-rational-when-climate-is-factored-in/

Everyone knows a key reason you pay up for California housing is the impressive climate.

Chapman University researchers now have some math to prove it.

Veteran economist Jim Doti and some of his students set out to see how county-by-county home values looked when traditional metrics — median selling prices and income levels from 2016 — were mathematically meshed with unorthodox ones — a U.S. Department of Agriculture “natural amenities” score and the proximity to the Pacific Ocean.

As Doti noted, “Location. Location. Location.”

Chapman’s “amenities factor” revealed significant variations in housing’s “overvaluation” or “undervaluation” throughout the state. However, the statewide median valuation for the 39 large counties studied was 0.5 percent — a sign statewide housing is fairly priced.

“Prices may be high but they are rational,” Doti concluded.

*More worrisome is California’s status as the nation’s top state for international trade, with China and Mexico the top foreign business partners. Doti warns that if current frictions between the U.S. and its trading allies intensifies, “a trade war will hit California hard.”

[udidwht]

What I see is it all will come crashing down at some point. You can't have a system with ever increasing prices without consequences for all in the end. At some point one has to say 'Enough is enough. We're on the verge of this now in many large cities.

[CaliRestoration]

Originally Posted by udidwht

What I see is it all will come crashing down at some point. You can't have a system with ever increasing prices without consequences for all in the end. At some point one has to say 'Enough is enough. We're on the verge of this now in many large cities.

So, you see Manhattan prices crashing down?