Costly Cities See Exodus (todays' WSJ)

3 Replies

I think this was discussed couple of months back on an another forum post in terms of how many people are moving out of California and even listed all the companies that have either moved out or plan to move out. And if I recall the argument was that the jobs/people moving out of CA are low paying jobs which are being replaced by high paying ones.  An interesting data point will be to see how many high paying jobs have moved to CA or job growth from 2010-2014.

Originally posted by @Naveed Q. :

I think this was discussed couple of months back on an another forum post in terms of how many people are moving out of California and even listed all the companies that have either moved out or plan to move out. And if I recall the argument was that the jobs/people moving out of CA are low paying jobs which are being replaced by high paying ones.  An interesting data point will be to see how many high paying jobs have moved to CA or job growth from 2010-2014.

I have seen a bunch of articles like this in the past.  Haven't seen much evidence of it here the last 6-7 years.  All everyone complains about is gentrification and too many people with money moving in.  When I see that they only consider domestic migration in their stats I know it is all but meaningless for an international city like Los Angeles or San Francisco.  So many immigrants here and many of them are more educated and much more driven than the average American.

Still there are people that move away due to high housing prices, especially those on the lower end of the income spectrum.  Also, there isn't physical room for many more people in some of the built out cities, so these places can't even absorb natural increases through births over deaths.

I can't speak for the Frisco market (I don't even have a Twitter account!) but here in San Diego County, about two-thirds of the buyers on my listings are retirees of one stripe or another. This includes relatively young military retirees buying with a VA loan.

It sucks for working class people, but nobody is forcing them to stay in places where jobs don't accommodate them well, like San Jose or Honolulu.  There are plenty of places to live where one can find good pay, affordable homes, and a very decent lifestyle.  One should never expect--nor believe that they deserve--to live in Paradise Town. 

And if there comes a day when my reach exceeds my grasp, better opportunities are a U-Haul rental away.

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