The Big "California Housing Prices" thread (was:Home prices are not going down, so why stay if you can't afford it? (Los Angeles: 2015, rent)

[JJonesIII]

This was a question I posed to an ex-co-worker who claimed back in 2015 that housing was going to crash in metropolitan areas like Los Angeles, San Diego, and San Francisco. I smiled at him and just laughed. He missed the best opportunity in a century by not buying in 2010. And now that we are in 2018, all these areas have appreciated roughly 80% (probably 20-25% since he made his claim in 2015). So if we hit a recession where is he? Prices take maybe a 20% haircut and he's no better than where he was in 2015 (a time when he couldn't afford to buy anyway). Not to mention the quality of home owners now is much better than in 2008. People aren't going to just walk away from home with 20%+ equity in them.

I just think it's silly that people that live paycheck to paycheck fight it so much and then throw out their silly defense mechanisms as justification (i.e. I couldn't bare to live away from an ocean, all my friends and family are here, it's so scenic, etc.). Just dumb! Half the people I hear the beach comment from haven't been to the beach in years, and it's not like CA is the only scenic area in the nation. Ultimately, none of that stuff means anything if you're paying 40-45% of your income on a dwelling that is probably 1/3 the size of most areas of the country for 3x the cost. And never mind that retirement (he's not going to have any). What really makes me laugh is most people spend 90%+ of their time at work, home, or commuting. I think I'd rather have part of that 90% spent in a spacious home with all the latest amenities and have enough disposable income to dine out when I please, travel, and be able to save for retirement. If he were making enough to afford it, I'd say enjoy yourself. But he'll be paying the price the rest of his life by dealing with such a high COL when he can't afford it.

[Finper]

Originally Posted by JJonesIII

This was a question I posed to an ex-co-worker who claimed back in 2015 that housing was going to crash in metropolitan areas like Los Angeles, San Diego, and San Francisco. I smiled at him and just laughed. He missed the best opportunity in a century by not buying in 2010. And now that we are in 2018, all these areas have appreciated roughly 80% (probably 20-25% since he made his claim in 2015). So if we hit a recession where is he? Prices take maybe a 20% haircut and he's no better than where he was in 2015 (a time when he couldn't afford to buy anyway). Not to mention the quality of home owners now is much better than in 2008. People aren't going to just walk away from home with 20%+ equity in them.

I just think it's silly that people that live paycheck to paycheck fight it so much and then throw out their silly defense mechanisms as justification (i.e. I couldn't bare to live away from an ocean, all my friends and family are here, it's so scenic, etc.). Just dumb! Half the people I hear the beach comment from haven't been to the beach in years, and it's not like CA is the only scenic area in the nation. Ultimately, none of that stuff means anything if you're paying 40-45% of your income on a dwelling that is probably 1/3 the size of most areas of the country for 3x the cost. And never mind that retirement (he's not going to have any). What really makes me laugh is most people spend 90%+ of their time at work, home, or commuting. I think I'd rather have part of that 90% spent in a spacious home with all the latest amenities and have enough disposable income to dine out when I please, travel, and be able to save for retirement. If he were making enough to afford it, I'd say enjoy yourself. But he'll be paying the price the rest of his life by dealing with such a high COL when he can't afford it.

Exactly!!! Well said!

[DrDog]

Originally Posted by JJonesIII

This was a question I posed to an ex-co-worker who claimed back in 2015 that housing was going to crash in metropolitan areas like Los Angeles, San Diego, and San Francisco. I smiled at him and just laughed. He missed the best opportunity in a century by not buying in 2010. And now that we are in 2018, all these areas have appreciated roughly 80% (probably 20-25% since he made his claim in 2015). So if we hit a recession where is he? Prices take maybe a 20% haircut and he's no better than where he was in 2015 (a time when he couldn't afford to buy anyway). Not to mention the quality of home owners now is much better than in 2008. People aren't going to just walk away from home with 20%+ equity in them.

I just think it's silly that people that live paycheck to paycheck fight it so much and then throw out their silly defense mechanisms as justification (i.e. I couldn't bare to live away from an ocean, all my friends and family are here, it's so scenic, etc.). Just dumb! Half the people I hear the beach comment from haven't been to the beach in years, and it's not like CA is the only scenic area in the nation. Ultimately, none of that stuff means anything if you're paying 40-45% of your income on a dwelling that is probably 1/3 the size of most areas of the country for 3x the cost. And never mind that retirement (he's not going to have any). What really makes me laugh is most people spend 90%+ of their time at work, home, or commuting. I think I'd rather have part of that 90% spent in a spacious home with all the latest amenities and have enough disposable income to dine out when I please, travel, and be able to save for retirement. If he were making enough to afford it, I'd say enjoy yourself. But he'll be paying the price the rest of his life by dealing with such a high COL when he can't afford it.

Well said, and why we left long ago.

[1AngryTaxPayer]

I'm surrounded by people at work like this. They can barely make rent, are one paycheck away from digging into retirement funds. For what? Just to say you live here? I do feel sorry for them but the excuses they have and yet they are so bitter.

My family lives here. No way I'm living in yada yada flyover country again. Ok, then Shut the front door and deal with it. Most already know they can't afford to retire here yet they are going to survive as long as possible and move to some cheaper state (eventually) with NOTHING. They'll all be working crap jobs in what should be retirement age in a place they will hate vs moving in their prime earning years to some place they can build some type of life and afford to visit here.

I think they are doing it backwards. Move to where you can afford to build some wealth and afford a retirement. Heck, move back and rent when you retire and pay someone else to mow grass and take care of the place.

[expatCA]

Originally Posted by 1AngryTaxPayer

I'm surrounded by people at work like this. They can barely make rent, are one paycheck away from digging into retirement funds. For what? Just to say you live here? I do feel sorry for them but the excuses they have and yet they are so bitter.

My family lives here. No way I'm living in yada yada flyover country again. Ok, then Shut the front door and deal with it. Most already know they can't afford to retire here yet they are going to survive as long as possible and move to some cheaper state (eventually) with NOTHING. They'll all be working crap jobs in what should be retirement age in a place they will hate vs moving in their prime earning years to some place they can build some type of life and afford to visit here.

Sad but true.

[sdlife619]

And this is the exact reason why I’m leaving CA/SD by summer. I’m done complaining of how unreasonably expensive it is, and have finally decided to do something about it.

The hardest part of it all is preparing yourself emotionally when you leave, since most of us here will be leaving our friends and family behind. But you have to do what’s best for YOU and your family if you have children in order to have a better life and not struggle which is key.

Financial independence and being comfortable matters a lot, and if one can barely make his or her own bills, is having a hard time surviving in general, you’re right, why stay and put up with that?

Also it’s expensive to pack up and move someplace else, especially if you have a ton of things. It’s even more pricey if you’re going to move out of state and far away states like say Texas.

Then the planning process, finding a job in the new city, finding a home, playing the waiting game is very difficult for the majority of residents that WISH that they could leave in a heartbeat.


I bet more people would move out if they could, but it’s honestly tough if you don’t have a plan nor a future in place for success.

[erickz623]

Housing and overall cost of living has gotten ridiculous in California. I moved to Texas 5 years ago and have never looked back. My money has gone so much further and I’m able to put away more money than I ever could in California.

While I do miss my family and the things I grew up around, I was tired living paycheck to paycheck. I had to do what I had to do. I suggest others to do the same.

[sdlife619]

Originally Posted by Millennial CollegeStudent

Why not just move somewhere local then like the Inland Empire? You can get your more affordable cost of living and stay close to friends/family along with everything great SoCal has to offer. Look into Claremont and Diamond Bar.

True, and some parts of Riverside has seen new housing developments that are really nice, but honestly it’s still not worth living so far out and paying just a little less money to live there than San Diego.

The main reasons why I’m moving out of state is the obvious, but secondly, the high taxes, the politics and never ending increases in taxes.

I’m a Millennial as well, an older Millennial however and my views towards CA has changed a lot I just the past year. I used to be a hardcore Dem for years, but seeing how things have become increasingly hard to survive, the lack of true real wage growth, taxes that affects everyone, high gas prices, and honestly a future that is catering to ONLY the wealthy in CA has made me wonder if the politicians really want to help the “common man”, but instead they make policies and pass laws that hinder growth and make even more difficult for people to make ends meet.

I’m over it.

[LuvSouthOC]

Originally Posted by 1angrytaxpayer

i'm surrounded by people at work like this. They can barely make rent, are one paycheck away from digging into retirement funds. For what? Just to say you live here? I do feel sorry for them but the excuses they have and yet they are so bitter.

My family lives here. No way i'm living in yada yada flyover country again. Ok, then shut the front door and deal with it. Most already know they can't afford to retire here yet they are going to survive as long as possible and move to some cheaper state (eventually) with nothing. They'll all be working crap jobs in what should be retirement age in a place they will hate vs moving in their prime earning years to some place they can build some type of life and afford to visit here.

I think they are doing it backwards. Move to where you can afford to build some wealth and afford a retirement. Heck, move back and rent when you retire and pay someone else to mow grass and take care of the place.

+1

[NoMoreSnowForMe]

There are always trade-offs wherever you live. Just because you choose Trade-off List A, doesn't meant the person who chooses Trade-off List B is dumber than you.