California has long been seen as a promise of the future. Known as the Golden State for many reasons, California stands as the fifth largest economy in the world. It stands as both the tech and entertainment centers of the world. And the state is blessed with beautiful geography and year-round moderate if not perfect temperatures.
If the Golden State continues to be golden, why then are more people moving out of the state than moving into the state?
One now Idahoan and former Californian, Julie D’Agostino, may help us answer this question. “I loved everything about the Bay Area but, despite having a good paying tech job, it just wasn’t an option for me financially. I was already priced out of California several years before I moved and I didn’t see myself miraculously suddenly being able to afford it.”
D’Agostino is not alone in being priced out. According to the California Association of REALTORS®, only 26% of buyers could afford to pay the median sale price, now nearly $600,000, for a single-family home in Q2 2018. And, the number of home listing views specifically from California, according to realtor.com, have increased +29% in just one year.
D’Agostino chose Boise for its walk-able downtown, lively arts scene and, most importantly, its lower housing costs. Her three-bedroom house cost $259,000, under Boise’s current median home price of $299,950, an 18% increase from last year and still 50% of California home prices.
Glen Kelman, CEO of Redfin, said Trump’s tax overhaul and its cap on mortgage interest and property tax deductions merely added “gas to the fire,” Clearly, Californians are driving to other parts of the country to live Kelman added,. “Boise (and Reno and Phoenix) isn’t five times worse than California as a place to live…but it’s definitely five times more expensive to live.”