Why do people still want to live in California? (San Francisco: low income, real estate market)

[ZeApelido]

Maybe we should look at the question in reverse. Assume all properties in the U.S. cost the same for $ / sq ft.

Where would you move to?

Where do you think other people would move to?

There's no doubt in my mind a lot of people would try to move to coastal California. Why? Because they value the benefits people have stated above.

Even with the perceived and real problems that come with it, people would still prefer it to most other places in the U.S.

Ergo housing demand goes up and housing prices will go up.

Now I don't think the naturally equilibrium is the vast difference in Bay Area prices vs the rest of the U.S.

But the market is speaking, and telling us that people are valuing something, even if it isn't what YOU value.

[Mike930]

Originally Posted by CHRockwell

The facts are there are very few people living in CA that can actually afford it, but they do not realize that yet

LOL. Of course you know about everyone better than they do.

[CA4Now]

Originally Posted by emotiioo

As bottom line people the state is not profitable for us. I am genuinely interested in what attraction it holds for others.

The same reason that people chose to live anywhere: this is where our families are, our friends are, and our jobs are. It doesn't hurt that most people who live here are fairly open minded, the mountains are practically in our back yard, the beach is close by, and the desert isn't too far a drive.

[CHRockwell]

Originally Posted by Mike930

LOL. Of course you know about everyone better than they do.

I know I can read statistics. That isn't hard. You an tell me with all your heart that 65% of people can afford to live in CA and yet 38% have $0 in savings and another 27% have less than $1000.

Originally Posted by GoldKona

K, but people in Iowa don't have hundreds of thousands of dollars in home equity. Just about everyone is my neighborhood could buy a house in Iowa with cash and 5-10 cash rentals.

And equity is great if you leave the area. Until then it is paper gains. Great cocktail party talk but nothing more. No doubt that gives them the ability to leave at some point.

Originally Posted by saibot

I know there are really people who are that broke. On the other hand, a certain number of people chose to invest/store their money in something other than savings accounts. Consider:



https://www.gobankingrates.com/savin...00-in-savings/

This means that 38% of respondents have savings BUT it is not in a savings account.

Multiple studies that show they don't have access to $1000 which is the point, not the medium it is stored in. You keep that head in the sand and think all those people are OK.

From those same studies: The other 63% would have to resort to measures like cutting back spending in other areas (23%), charging to a credit card (15%) or borrowing funds from friends and family (15%) in order to meet the cost of the unexpected event.

In other words they don't have the moolah whether it be savings, stocks, cash, checking, money market, etc.

Originally Posted by ZeApelido

Maybe we should look at the question in reverse. Assume all properties in the U.S. cost the same for $ / sq ft.

Where would you move to?

Where do you think other people would move to?

There's no doubt in my mind a lot of people would try to move to coastal California. Why? Because they value the benefits people have stated above.

Even with the perceived and real problems that come with it, people would still prefer it to most other places in the U.S.

Ergo housing demand goes up and housing prices will go up.

Now I don't think the naturally equilibrium is the vast difference in Bay Area prices vs the rest of the U.S.

But the market is speaking, and telling us that people are valuing something, even if it isn't what YOU value.

Agree. I will be the first to say is the market does not lie. Having said that contrary to what multiple posters here think the majority already there can't afford the luxury

[emotiioo]

Originally Posted by ZeApelido

Are you purposely asking a question with false pretenses or do you not actually understand the situation in California?

Who's power is going out at regular intervals? Not most people.

Whose water was turned off or portioned out in small rations?

Where do people live that might burn down?

Most people in the main metro areas don't live in a situation that has any of these issues. Possibly a one-off power going out.

The places that have these issues - they cost LESS. The people in Central Valley with poor water access? Much much cheaper than SF / LA / SD.

The people at risk for fires? Mostly cheaper areas. Like in Bay Area, those places are ~50% the cost of similar spec'd houses not in fire zones.

Answer the question. Would you buy a home in that condition? With those "compromises"?

I don't think you would.

Perhaps you don't understand the gravity of your own state's environmental, infrastructure or water problems. Perhaps you don't realize the toll that overpopulation is taking on it. Perhaps you don't read the Covid-19 numbers. Perhaps you are someone who can live with very few conveniences, an unlimited cash flow, a love of traffic and a yen for poor air quality. Perhaps having friends and family who agree this is the lifestyle of choice around helps your attitude of acceptance. Perhaps those "cheaper" areas can burn to the ground and because you have a couple grand in the bank, it really doesn't matter what happens to your fellow citizens. Really when my friends got evacuated from Napa its because they lived in a "cheap " area.

This thread is too much. Sadly there's now a social shaming starting to underpin many of these replies. Question my decision? Its because you can't afford it. And you are probably jealous. So much posturing. The smugness is taking on South Park proportions.

[CHRockwell]

Originally Posted by emotiioo

Answer the question. Would you buy a home in that condition? With those "compromises"?

I don't think you would.

Perhaps you don't understand the gravity of your own state's environmental, infrastructure or water problems. Perhaps you don't realize the toll that overpopulation is taking on it. Perhaps you don't read the Covid-19 numbers. Perhaps you are someone who can live with very few conveniences, an unlimited cash flow, a love of traffic and a yen for poor air quality. Perhaps having friends and family who agree this is the lifestyle of choice around helps your attitude of acceptance. Perhaps those "cheaper" areas can burn to the ground and because you have a couple grand in the bank, it really doesn't matter what happens to your fellow citizens. Really when my friends got evacuated from Napa its because they lived in a "cheap " area.

This thread is too much. Sadly there's now a social shaming starting to underpin many of these replies. Question my decision? Its because you can't afford it. And you are probably jealous. So much posturing. The smugness is taking on South Park proportions.

See I am OK with them saying that. I do not owe a penny to anyone not even my house (fully paid for). I'll run with what they tell me and agree and say "Ok I can't afford to live there" which supports my line of saying that the mass majority of people cannot afford to live there then because 99% of the people there have far less money than I do.

If they tell me that 60% of people can't afford to live where I do my answer is you are probably right, but I can and enjoy living where I do.

[sav858]

Family, friends, and career are my reasons. Personally I'm tired of this state and if it was easy and didn't have connections would happily leave.

[Huckleberry3911948]

Anybody that Is from Chicago knows why people live here
Been here since 1977 waiting for winter -has not come yet

[CA4Now]

Originally Posted by Huckleberry3911948

Anybody that Is from Chicago knows why people live here
Been here since 1977 waiting for winter -has not come yet

LOL; half my family is from there, so yes, we know why (although I LOVE Chicago - to visit, at least. A very dynamic city).

[CA4Now]

Originally Posted by emotiioo

Let me ask a different question.

Would you buy a house which had the power go out at regular intervals? Where your water was turned off or portioned out in small rations? Where there was a serious threat that it might burn down and you knew about that when you bought it?

Banks won't lend on such places. Roll on over to the real estate forum and read about all the minor problems that scare people off during inspections.

Now consider that millions upon millions of people are opting to live in just such conditions. It honestly boggles my mind. But its nice weather I guess

"Millions upon millions of people"? Where is this? Your thread seems to be taking an odd turn.