The SoCal and Texas Real Estate Connection: Southern California middle class disappearing into Texas thanks to high real estate prices.
ByTypically at the height of any bubble, you have housing cheerleaders talking about a “new normal” as if they have magically figured out a new secret. California is a land of booms and busts. We just had a boom. So counter to all of the history we have and common sense, somehow there is no correction to follow, this time. That is the logic. First, you have the idea of ignoring income. Second, you have the idea of every area being a candidate for gentrification. Finally, you have the “if you can’t afford it, leave” argument. Forget about any Black Swan like events that are bound to happen. The middle class is already leaving, many into inland areas of California but many to more affordable states. Many house humpers use emotion to base their arguments. I understand this. Go to any open house and you have people looking like lemmings trying to buy a home. Most of the time, there is this deep source of desperation in their eyes. You do realize you are locking yourself into a crap shack for 30 years right? That is assuming many can compete which they can’t (hence the domestic out migration). Many are leaving to places like Texas. Texas as you know has incredibly affordable real estate relative to SoCal. And SoCal domestic residents have figured this out…
