California dreamin' is proving to be just that for tens of thousands of residents as they depart for "greener pastures."
On the set of Smarter San Diego, host Derrick Evens and our very own Melissa Sofia discussed a shocking news release that has many worried. Census data revealed we are experiencing a "mass exodus" of not only SoCal residents, but California residents statewide. So, how bad is it?
For many decades we had approximately 10,000 residents move from San Diego to other states. Reports from July 2017 show us that in the last annual cycle we experienced a net loss of 16,000 residents from San Diego and the year before that, 8,300- proving that the trajectory is doubling! Statewide we experienced a yearly net loss of 138,000.
Affordability is the #1 reason to blame. The cost of living is soaring and we are experiencing a serious housing crisis. All price ranges in housing are showing a severe shortage of properties for sale which is driving all inventory upward in value, and rents are reflecting this in an aggressive way. Census shows us that the majority of residents fleeing are those with salary wages below $50,000. Individuals and families still moving into California are those making well over $100,000 annually- with most being from Illinois, New Jersey and New York.
What does this mean for you?
Ideally this information would lead you to believe that with less people there would be an improvement in our housing shortage and prices could finally normalize in home values and rents. The problem with that assumption is that statistically there won't be a vast enough decrease to remedy the problem. Also, the individuals leaving the state are the customers of business owners. The cost of living has skyrocketed up 75% in recent years with only a 30% wage increase. That data shows us that small business owners need more support from the government to stimulate our growing industries.
Should you sell?
If you currently own a home and have been holding onto it in fear of where you will live next, we suggest you sell now. We are seeing a very slow plateau in home values with a 5% increase last year and only a 2% increase this year. If you want to achieve the most profit for your property there has never been a time like the present. Broker/owner of the Avenue HC, Melissa Sofia suggests that if you can find a place to live short term, you should sell you property this summer and wait out the market. This will guarantee that you put the most value in your pocket.