Ask someone what comes to mind when they think of California and you will probably hear answers like sunshine, surfing, celebrities, and, the less positive, insanely high housing costs. And, like the sunshine and the surf, it doesn’t appear as though these high housing costs are going to be going anywhere anytime soon.
According to Curbed LA, California’s expensive housing is driving many poor and middle-class individuals out of the state. Between 2007 and 2014, California had a net loss of 625,000 residents. California’s high housing costs have led to the state having a severe housing shortage and the second lowest homeownership rates in the country.
The majority of the people leaving California are residents who earn less than $30,000 and exist in lower-paying, lower-skilled jobs. While these jobs (think food preparation, transportation, or office administration) might be low-skill, they are essential to the efficient functioning of any state.
For people in these low-paying jobs, buying a house is nearly impossible, especially when you consider the sky-high cost of rent that prevents people from saving any type of down payment.
