The people are clearly showing what happens when you spike the rent too much. Now they are leaving places like California in droves.
Fox News reports a survey from ConsumerAffairs, detailing the recent trends in moving habits. The data shows that a high cost of living directly correlates with a drop in population. It seems like the allure of the Bay Area, Los Angeles, and San Diego is losing its luster. But why?
Data editor Jill Castellano, representing the company's survey, puts it best. "The ongoing high cost of living in California -- especially high home and rental prices -- are no doubt contributing factors. Addressing the state's climbing living and housing costs would be one way for California to appeal to people looking for a place to move," she says. People are struggling with fast food prices, let alone rent.
On the other hand, movers are migrating to the Atlantic instead. On the scale of desirability, both Carolinas, Florida, Tennessee, and Texas rank in the top 5. It's not hard to understand why. As someone who's lived in Texas and California, the scale in relation to the price point is pretty reasonable. You can move to a smaller town and have a legitimate chance at being a home-owner. You'll just need to drive a little bit to get to the inner city. Conversely, living in cities like Houston, Dallas, and San Antonio, you can still have a decent living situation. In contrast to the West Coast, the playing field remains high, no matter where you go.
Rent Prices Drop as People Leave California
As a result of the great California migration, rent prices are dropping. Zumper reports that Oakland, Sacramento, and others have seen 1 and 2 bedroom apartments trend upward and rent going down 8 percent.
A lot of this traces back to the job market being bone dry. Oftentimes, it seems like an application fizzles out into the void. Whether it's a flat out denial or a job ghosts you, it's impossible to land a decent job that fits your credentials. The effects of COVID-19 is the primary signifier in this. The article says Los Angeles has 60,000 fewer jobs than before the pandemic rooted itself in society. Similarly, San Francisco hovers at around 45,000 lost jobs. As a result, people are scrambling to dodge landlord's upping rent, find job opportunities, and still live somewhere decent.
