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Old 01-15-2009, 05:59 PM
 
Location: West Coast
1,310 posts, read 4,138,999 times
Reputation: 698

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Quote:
Originally Posted by OC Investor2 View Post
It was before my time here, but I have heard that much of So Cal real estate boomed in the 80's, yet the people kept coming.
Which is why housing costs got ridiculous. Spot on.

There is still a huge draw to California, its just that peoiple can't afford it. Hence you get placing like Vegas, Phoenix, and Denver growing to what they have grown to. They are just wannabe Substitute California.

 
Old 01-15-2009, 06:06 PM
 
2,654 posts, read 5,466,086 times
Reputation: 1946
Quote:
Originally Posted by sheri257 View Post
Yeah, California housing prices did start to get higher during the mid '70s but ... not that high. The out migration really started with the recession of the early '90s which ...

Not coincidentally, was when housing prices really started to take off far above the national median ... as this chart shows.

http://www.mybudget360.com/wp-conten...5_medianus.gif

Since the '90s ... California housing prices have never really gotten back to anything resembling the rest of the country.

So all of those other things could play into it but ... the bottom line is still housing prices.
I'm gonna have to disagree w/ you on this one. Your chart shows the CA median home price rising to double the US median during the 1980's, yet people continued to come during this period. This would disprove the notion that in/out migration is driven by real estate prices.

As you mentioned, California has been experiencing an out-migration of US citizens since the reccession in the early 1990's. Something changed from that point on. Could it by the loss of middle class jobs? "White flight" from growing immagration? Lower economic growth?

Probably some mixture of all of these. It may have been abetted by the housing cost issue, but I doubt its the driver. More importantly, I don't think if/when housing prices correct & level out it's going to solve this states economic issues and people will begin coming back.
 
Old 01-15-2009, 06:19 PM
 
2,654 posts, read 5,466,086 times
Reputation: 1946
Quote:
Originally Posted by vdy1985 View Post
Which is why housing costs got ridiculous. Spot on.

There is still a huge draw to California, its just that peoiple can't afford it. Hence you get placing like Vegas, Phoenix, and Denver growing to what they have grown to. They are just wannabe Substitute California.
Thats a little bit of a "california -centric" view.

From the 50's to the 80's many of the peple who left the northeast & rustbelt came west to CA. Starting in the 1990's, they began going to other places in the sunbelt. And apparently they were joined by many former Californians as well. Maybe we should consider that there are other reasons for them to have turned away from CA besides that fact "They could'nt afford it"

You make California sound like the aging starlet dumped for a younger beauty who sticks her nose in the air & says "well, he was'nt good enough for me anyway"
 
Old 01-15-2009, 06:29 PM
 
Location: Irvine, CA to Keller, TX
4,829 posts, read 6,930,872 times
Reputation: 844
Quote:
Originally Posted by sheri257 View Post
People can say the out migration is happening for all of these other reasons but, the bottom line is housing prices. When prices go up ... more people move. When housing prices are down, less people move.

What the article fails to mention is that the net out-migration has dropped by half just in the last two years. Not, coincidentally with the 40 percent drop in housing prices.

http://www.brookings.edu/opinions/20...charts_2_3.pdf

At the peak of the housing boom from 2005-2006 up to 285,000 people were leaving the state. Now, with the real estate crash, it's down to 144,000.

In 2001 ... before housing prices got really crazy ....the out migration was only 39,000 people.

There's a direct correlation with housing prices. The lower they go, the less people leave.
What the article fails to mention is that the net out-migration has dropped by half just in the last two years. Not, coincidentally with the 40 percent drop in housing prices.

The net out-migration slowed because unlike us they missed the boat and could not sell their homes anymore and make enough to make it worth leaving. That is why less people left. They are now waiting for their homes to appreciate once again so they can sell and leave.
 
Old 01-15-2009, 06:43 PM
 
Location: Irvine, CA to Keller, TX
4,829 posts, read 6,930,872 times
Reputation: 844
Quote:
Originally Posted by vfrpilot View Post
Sheri wrote:

Do you actually believe that millions of folks are not in their right mind? I know lots of folks here in CO that would never consider living in CA, even though they've lived there and could well afford to live just about anywhere they want. I get the fact you love CA and can totally understand your position, but people have different priorities that will change during their lives. What I don't get is why you say that if you live in TX or CO you must be poor or crazy. But I guess it's all relative. I guess I'm not in my right mind or delusional as someone else said. I guess I'm just kidding myself to actually enjoy living outside of CA. I glad you have opened my eyes
I have a friend that is retired here in TX and goes to CA, Florida, and Europe each for 2 weeks during the year. He is always glad to be back home in Austin TX. He raised his family for the most part in Irvine, CA but left when the timing was right and never looked back.
 
Old 01-15-2009, 07:02 PM
 
Location: Daytona Beach, Florida
268 posts, read 900,179 times
Reputation: 160
Frankly, when I was living in Sherman Oaks in the early 90s, I felt like the only non-jewish white dude in the valley! In Van Nuys I felt really out of place and this was 15 years ago!

I know a California native; happily married Firefighter (wife CA native also) and Father of three 20 something kids living in Port Orange - FLORIDA. He moved his family there 1988, happy ever after since. He was raised in Gardon Grove in OC as he spoke so fondly growing up in OC in the 60s/70s. He loves Port Orange and he says "Port Orange is Orange County 30 years ago. He also added "the humidity is good... keeps this place from being another Orange County... and if we had no humidity then Port Orange would be just like Orange County is right now or worse."
 
Old 01-15-2009, 07:06 PM
 
1,831 posts, read 5,293,735 times
Reputation: 673
Quote:
Originally Posted by OC Investor2 View Post
I'm gonna have to disagree w/ you on this one. Your chart shows the CA median home price rising to double the US median during the 1980's, yet people continued to come during this period. This would disprove the notion that in/out migration is driven by real estate prices.
Not really. Prices did rise through the '80s but the big price spike was in 1988-89. The out migration started in 1991-1992.

It's not like people suddenly decide to pack up and move over night. It would logically take a couple of years for the new high price thresholds to have an impact.
 
Old 01-15-2009, 07:10 PM
 
1,831 posts, read 5,293,735 times
Reputation: 673
Quote:
Originally Posted by Soccersupporter View Post
The net out-migration slowed because unlike us they missed the boat and could not sell their homes anymore and make enough to make it worth leaving. That is why less people left. They are now waiting for their homes to appreciate once again so they can sell and leave.
Again, if that was true then why was out migration down to measily 40,000 people in 2001?

Lots of people could have sold their homes then ... The market had fully recovered and prices were up steadily for five years since 1996.

Home depreciation back then was unlikely. But homes were more affordable which is why more people stayed.
 
Old 01-15-2009, 07:20 PM
 
1,831 posts, read 5,293,735 times
Reputation: 673
Quote:
Originally Posted by Soccersupporter View Post
He raised his family for the most part in Irvine, CA but left when the timing was right and never looked back.
Which begs the question ... why are you guys looking back? Seems like we've got more California ex-pats posting here than California residents.

I used to live in Texas but I don't care enough to post in your forums every day ... that's for sure.

Are you guys a little homesick by any chance? Because it seems like you're trying to convince yourselves that you made the right move ... more than anyone else.

 
Old 01-15-2009, 08:08 PM
 
Location: Avondale, AZ
1,225 posts, read 4,922,389 times
Reputation: 963
Quote:
The net out-migration slowed because unlike us they missed the boat and could not sell their homes anymore and make enough to make it worth leaving. That is why less people left. They are now waiting for their homes to appreciate once again so they can sell and leave.
In my little sphere of societal contacts, this is the exact situation. Californians sold their 40 y/o tract home on a postage-stamp lot for a bazzilion bucks and move to wherever and buy macmansions for cash, or if they're smart, buy something more practical and have a wad of cash to cushion any economic disasters, or just to feel a bit more secure in a life without debt. A life, I might add, that is a lot slower, with great schools for our daughter, and lots of pine trees. I see a lot of remarks about how Californians have driven the property values up everywhere due to this scenario. They could only do this if the CA RE market was hitting on all cylinders. I don't think this will play out again for a while. In fact there has been some observations on the CO forum that the plunging CA market will finally slow the CA transplants. Just observations that right or wrong don't mean a whole lot.
If the reduction in home prices mean ppl want to stay put, wouldn't that increase the number of homes sold to those folks?
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