compare to other state why califonia is so expense to live at?

Question

i haved in other state and i do not see nothing different except the price i would to know why.

Answer 1

There are many reasons why CA's housing is so expensive.
People have always been attracted to Ca and it's lifestyle so there will always be people wanting to move here just to live here. But that isn't a big factor in population growth here anymore as it was in the 1950's and 1960's; many native or long time Californian's are leaving for other parts of the country.
CA also attracts a lot of people b/c there are so many different types of jobs and they pay very well, especially in the Bay Area. Jobs are the main force behind population growth or decline in metropolitan areas and the Bay Area and LA/Orange County have a lot of high paying jobs. A lot of immigrants come to CA too b/c it's a natural point of entry for latino's and asians and there are many low skilled jobs they can find.
Another factor is coastal areas have a very limited supply of buildable land b/c of the contraints of water and mountains. We just don't have the vast open spaces other parts of the country have to expand. Much of the development over the past 50 years in CA has been single family homes which take up a lot more space than multi family.
One of the biggest factors in high home prices is government policy. We have many regulations regarding development and it takes time and money to get all those environmental impact reports done and to go through the permitting process. Time is money and the longer it takes to clear regulatory hurdles the more it costs to develop homes. It takes years and sometimes decades to get major development projects off the ground.
Then there is Proposition 13, one of CA's worst public policies ever. Back in the 1970's property taxes were capped at a rate far below inflation so today many cities and towns are having a very hard time paying for public services b/c property taxes on older homes are not in line with inflation. CA pays far below the national average in property tax rates. So this forces cities to find new sources of revenue to pay for schools, police and fire protections, parks, ect... For new homes that means adding "development fees" and that costs gets passed down to the consumer. Development fees can easily add $30,000 or more to a single home. Then there is the issue of sales tax revenue which is looked at as a source to supplant property tax revenue. So cities are constantly competing with each other to attract sales tax generating businesses, which tend to be big box reatilers, malls, auto dealerships, ect.. So many times cities zone land or rezone land for commercial development that might otherwise be developed as residential. Residential development does not pay for itself and is a money loser for cities so they have no incentive to build more housing. A city would much rather build a Wal Mart than 500 homes.

There is the supply and demand issue that causes CA to have such high home prices. But one of the biggest reasons is the very high costs of building new homes. It's very hard to build a new community on undeveloped land b/c you have to deal with environmental opposition, which is very strong in CA, and then have to deal with the burdensome bureaucratic mess that is our development process. This process adds so much time and money to projects and is a huge mess. Even high density infill development is very expensive to do b/c of all the issues relating to the permit and development process and b/c of having to find ways to improve older infrastructure to support high density development. And development fees on new homes and the effects of Prop 13 all combine to make CA's home prices artifically higher than they otherwise could be.

Answer 2

It's not just the taxes. Let's not get into the orgy of blaming all our problems on Sacramento (as if there are no other factors). High taxes are the cheap and easy explanation to every problem. Yet, places like New Jersey and Massachusetts have far higher taxes than California.

I think supply and demand plays a huge role...at least when it comes to the housing and transportation issues. Everyone wants to come to California (the population is growing by 500,000 a year). So, the state has more people than it has houses built for them.

What is being built tends to be suburban. This pushes development further and further into the exurbs, which means people will have to drive more. And we all know what happens when people drive more, they use more gas.

The actual structure of California's economy doesn't help either. There's growing disparity between the lower and upper classes, not to mention a dissapearing middle class (due to a variety of factors... deindustrialization, the education gap, and yeah...immigration).

So, California businesses are creating a lot more rich people ... at the same time, they're creating a lot more poor people. Then they raise prices (on the correct assumption that rich people will pay). But afterwards, they wonder why half the people complain about affordability? Duh. You need to strengthen the middle-class to balance it out.

Answer 3

People seem to think California has the best weather, the greatest jobs, best scenery, beaches, etc.

The reason California is SO expensive it simple. It is all about supply and demand.

When you have so many people saying it is great then more people want to come and see that for themselves. As soon as more people come to the state then competition for jobs and housing increases. Everyone needs a job and a place to live. Before you know it the price of everything has increased simply because there is always someone willing to pay the high prices. When demand decreases we see the rental prices decrease, the cost of gas decrease, etc.

Answer 4

I don't know what out of state school would be cheaper than your own in state school. The UC system is good. They have quality education available at most of the campuses. You have to always be careful of the living environment no matter what school you go to. For the money, I don't think you will be able to significantly beat the UC system in quality. In other words, do the cost/benefit analysis. Will the extra benefit outweigh the extra cost? You said that as an initial premise, the out of state school would be cheaper. If the quality is also superior, then that would be the place to go. However, if you are giving up some of the quality, then is the reduced cost a large enough factor to make the sacrifice worth while. You can debate the intrinsic value of going away from home as opposed to staying at home for school also. What is your independence worth to you? When I went to college for the first time, I had to choose between a cheap local JC and an expensive private school out of state. I chose to leave home and spend my money at the university because I decided that the quality of education and the "on my own" factor were worth the extra cost. Best wishes.

Answer 5

there are several reasons why california is the most expensive state.
first of all the weather. all year round we have spring like weather. it never snows in the cities and it is actually possible to go swimming at outdoor pools in the winter.

2nd is that fact that almost all the good jobs in the western half of the US are in california. many people want to live here.

3rd there is a lot of things to do. in the bay area we are surrounded by huge regional parks , less than a a few miles away at the city limit. there are also shopping and theaters all around.

4th transportation is never obscured by the weather.
also we have the #1 subway system in the bayarea.
the buses have al been replaced with new ones from belgium. the airports are in an urban area.

5th education is really good in most cities. we have realy good schools and almost all of our UCs are in the top 20 universitys.

6th density is also a large factor. here more people live in urban areas than suburbs.

Answer 6

The cost of real estate is high so businesses have to pass on the costs to the consumer. The price of gasoline is higher in Calif (don't know why) so that cost ups the cost of goods and services. As others have already said, the taxes are also high (though I have heard that taxes can be high in other states, also). OTOH, the wages are higher too. Ppl in entry level jobs will start at $10-12/hr (and they complain that it isn't enough to pay their bill. They are prob. right).

Answer 7

Supply and demand. Three times the cost of Arizona. The best weather in the usa.The mystery is why is it ,why out of 12 people living in California only one in twelve is a native?The answer. The pace of the east coast is fast ,they brought that pace to California so California people have left.

Answer 8

The reason California is so expensive to live in is because of the weather, the beaches, and the entertainment. It is one of the most beautiful places to live so taxes are very high and it's hard to find a place to live that is affordable.

Answer 9

Higher taxes.

Answer 10

Its usually 65-75 degrees all year and it hardly ever rains.

Sincerely Jeff