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Old 11-08-2017, 10:38 AM
 
3,437 posts, read 3,289,513 times
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Quote:
Originally Posted by CaliRestoration View Post
People have to do what they have to do. More power to them.
I have some acquaintance that earns more than enough to buy a house in OC but they choose to live in Eastvale, Rancho Cucamonga for the acreage. they don't mind driving. they just don't like paying for expensive houses.


and they don't complain. they just chose what lifestyle they want.
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Old 11-08-2017, 11:02 AM
 
6,089 posts, read 4,991,082 times
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Quote:
Originally Posted by payutenyodagimas View Post
I have some acquaintance that earns more than enough to buy a house in OC but they choose to live in Eastvale, Rancho Cucamonga for the acreage. they don't mind driving. they just don't like paying for expensive houses.


and they don't complain. they just chose what lifestyle they want.
That's the awesome thing about a free market.
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Old 11-08-2017, 04:13 PM
 
4,481 posts, read 2,288,005 times
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Quote:
Originally Posted by hiddenagenda714 View Post
LOL, what a freaking idiot. Building more homes will not solve the housing crisis in CA. More people from Out of State will just move in.

Imagine if homes were 250k. Everyone from AZ, TX, NV, OR would move to CA.

Market determines the price. If prices were really low, yes more people would afford it, but it would be gone as soon as it's listed.

The only way to "solve" this problem is for the people who can't cut it, to move out. And it seems to work for them. So not really sure why so many bitter people on here. lol
Taimaishu or pradabear?

What needs to happen is businesses need to spread out. In SoCal the expansion should be towards Riverside, Moreno, etc. So it's not all concentrated in one region like DTLA and Irvine.
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Old 11-08-2017, 08:22 PM
 
Location: Riverside Ca
22,146 posts, read 33,558,160 times
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Quote:
Originally Posted by max210 View Post
Taimaishu or pradabear?

What needs to happen is businesses need to spread out. In SoCal the expansion should be towards Riverside, Moreno, etc. So it's not all concentrated in one region like DTLA and Irvine.

Financially it's better for businesses to be clustered together. Spreading out is horrible. You have additional costs.
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Old 11-09-2017, 06:31 AM
 
Location: Charlotte
2,413 posts, read 2,703,724 times
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Quote:
Originally Posted by max210 View Post
Taimaishu or pradabear?

What needs to happen is businesses need to spread out. In SoCal the expansion should be towards Riverside, Moreno, etc. So it's not all concentrated in one region like DTLA and Irvine.
White collar jobs are going to stay in LA / OC. Residents in the Inland Empire have a low percentage of college degrees among residents 25 or older (19.5% in 2010). If a business is going to relocate to the IE and move their office from LA/OC, they might as well move out of California entirely to a state with a lower cost of doing business and a more educated workforce than the IE (which most of the other 49 other metros offer lower costs and all offer more educated workers). The IE even ranks below Birmingham, AL metro, Memphis, TN metro, Tampa, FL metro, and Las Vegas, NV in % of the population with a college degree.

The IE's value prop of relatively high costs, but low education rankings, is why the two counties in the Inland Empire are home to no Fortune 500 companies, relatively few corporate headquarters, a low GDP given the population, and lots of warehouses / distribution jobs that just require a high school diploma. The market speaks and talent is the reason there are no shortage of Macy's and Amazon warehouses in the Inland Empire, but not a single Fortune 500 or prominent global HQ.

2010 Census, 50 largest Metro areas by Education Attainment (Inland Empire ranks 50th)
https://www.census.gov/newsroom/rele...able2metro.xls
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Old 11-09-2017, 07:38 AM
 
4,481 posts, read 2,288,005 times
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Quote:
Originally Posted by Electrician4you View Post
Financially it's better for businesses to be clustered together. Spreading out is horrible. You have additional costs.
I'll take your word for it. I don't know.

Quote:
Originally Posted by CLT4 View Post
White collar jobs are going to stay in LA / OC.
Those businesses are not going to hire unqualified. People would move 10, 20, 30 miles for a job where housing is cheaper. People move all the time to their jobs. I would if I could have the same job, salary and buy the $900k house I want for $600k.
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Old 11-09-2017, 08:01 AM
 
Location: Charlotte
2,413 posts, read 2,703,724 times
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Quote:
Originally Posted by max210 View Post
I'll take your word for it. I don't know.



Those businesses are not going to hire unqualified. People would move 10, 20, 30 miles for a job where housing is cheaper. People move all the time to their jobs. I would if I could have the same job, salary and buy the $900k house I want for $600k.
There is cost in re-locating a business. Let's take Toyota for example. They didn't move their HQ to the Inland Empire from high cost Torrance, they moved it entirely out of state to Dallas, where 31.1% of residents have a bachelor degree or higher (compared to 19.5% in the IE), the cost of living is lower than the IE, the international airport is globally connected (vs. Ontario Airport), and the cost of doing business was lower. I doubt the IE was even on Toyota's radar when they were evaluating staying in Torrance vs. moving the North American HQ to another location.

If the employees are going to have to move anyhow and you are going to lose a significant amount of current employees in the relocation, it is better to move to an area with more educated workers than the Inland Empire where you can fill the vacancies with better qualified talent.

For large businesses the Inland Empire's value proposition isn't strong:
1.) Lowest % of college degrees amount the 50 largest metro areas
2.) Relatively cheaper cost of living for employees than LA/OC, but still higher cost of living than just moving to a metro outside of CA
3.) Still all the same business regulations of California that make it more challenging for a corporation, without the benefit of being near the most educated workforce within that highly regulated business enviornment
4.) Poor access to an international airport for senior management / leadership

The Inland Empire hasn't been able to land any major corporate relocations from LA/OC. If a business does decide to move out of LA/OC (the cost-benefit value prop of high cost LA/OC isn't working for their business), it has typically been to leapfrog over the IE to a metro area in another state.

When the Inland Empire's value proposition is only "it's relatively cheaper than LA/OC", you don't exactly win in recruiting business. Fresno and Bakersfield are cheaper too than LA/OC. You don't see large companies establishing HQ's there either.

Last edited by CLT4; 11-09-2017 at 08:17 AM..
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Old 11-09-2017, 09:49 AM
 
Location: Charlotte
2,413 posts, read 2,703,724 times
Reputation: 3371
Quote:
Originally Posted by Hamsammich View Post
And yet there is a construction and population boom going on in the IE right now because that's where all the cheap available raw land is. Manufacturing, shipping, warehousing, and logistics is huge out there.

Monster is based out of Corona. That's a multibillion dollar company. It moved from LA to Azusa, to Anaheim, to Corona.
That's why I said earlier that the Inland Empire is great for manufacturing and shipping. Warehouse and logistics jobs often don't require a college degree and the Inland Empire is a good fit. The Inland Empire workforce has the right skill set for those jobs. The real estate boom is thriving for logistics and warehouse space and single family homes are still being built for middle income commuters and the local healthcare industry.

The white collar technology, engineering, financial services, etc... jobs in LA/OC aren't going to move out to the Inland Empire in large numbers though. It hasn't historically happened and it isn't likely to happen going forward.

The economic strength of the Inland Empire is partially revealed in their GDP data. Despite being #13 in the country for population, the value of the Inland Empire economy is all the way down at #23. Metros with a fraction of the 4.5 million people in the San Bernardino-Riverside have bigger economies such as Baltimore, Portland, St. Louis, Charlotte, Denver, etc...

The Inland Empire's $140 billion economy is closest in size to Pittsburgh, PA ($138 billion), a metro area of only 2.3 million people. So Pittsburgh manages to produce roughly the same size economy as the Inland Empire with 2.2 million less people than the San Bernardino-Riverside metro area.
https://en.wikipedia.org/wiki/List_o...n_areas_by_GDP

Last edited by CLT4; 11-09-2017 at 10:01 AM..
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Old 11-09-2017, 10:18 AM
 
4,481 posts, read 2,288,005 times
Reputation: 4092
Great explanations. Definitely got me thinking of a few things I was unaware of.
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Old 11-09-2017, 12:41 PM
 
3,437 posts, read 3,289,513 times
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Quote:
Originally Posted by Hamsammich View Post
And yet there is a construction and population boom going on in the IE right now
they expect those priced out in LA/OC to buy their house there
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