California homeowners spend an average of 21.9% of their income on housing costs, the 49th worst in the nation…
(Marketwatch) Say goodbye to Hollywood, Billy Joel sang in 1976.
Now, in the midst of a deepening housing crisis, thousands of people are following that advice.
Over a million more people moved out of California from 2006 to 2016 than moved in, according to a new report, due mainly to the high cost of housing that hits lower-income people the hardest.
“A strong economy can also be dysfunctional,” noted the report, a project of Next 10 and Beacon Economics.
Housing costs are much higher in California than in other states, yet wages for workers in the lower income brackets aren’t.
And the state attracts more highly-educated high-earners who can afford pricey homes…
California homeowners spend an average of 21.9% of their income on housing costs, the 49th worst in the nation, while renters spend 32.8%, the 48th worst.
The median rent statewide in 2016 was $1,375, which is 40.2% higher than the national average.
And the median home price was more than double that of the national average.
One coping strategy: California residents are more likely to double up.
Nearly 14% of renter households had more than one person per bedroom, the highest reading for this category in the nation…
Most people leaving the state earn less than $30,000 per year, even as those who can afford higher housing costs are still arriving.
As the report noted, California was also a net importer of highly skilled professionals from the information, professional and technical services, and arts and entertainment industries.
On the other hand, California saw the largest exodus of workers in accommodation, construction, manufacturing and retail trade industries…Original Source…