Ever since the Gold Rush in 1848, when 300,000 people came to California, the wave if migrations never really stopped. It is easy to understand why people love living in California. Excellent climate, beautiful beaches, and mountains, rich mineral deposits, all add to the allure of the Sunny State. It’s $3 trillion economies is by far greatest in the United States, dwarfing vast majority of sovereign states like India, France or the United Kingdom.
Having such a strong economy means that the state attracts a lot of skilled workers in search of a high salary. That creates a huge demand in the housing market, resulting in California has some of the most expensive housing in the country. For instance, an average home price is $1.18 million. Even Hawaii has cheaper houses, with an average price of $1.044 million. In fact, only New York is more expensive, with an average price of $1.74 million.
In turn, these prices push up everything else. San Francisco’s Bay Area is notorious for its rents, with a two-bedroom apartment going for more than $4,000 a month.
The reason for this housing crisis is lack of supply, created mostly by California’s harsh zoning laws, which severely restrict residential development, creating a market shortfall. Until the lawmakers see fit to address this issue, housing prices, rent included, will continue to rise, making the situation worse each year.