Why have the houses of Northern California become exaggeratedly expensive to rent or buy?
There are large amounts of 3 bedroom 1bathroom houses that are selling between 1 1/2 million-2 million.Small studios are renting for $1,900-$2,200 per month,a one bedroom one bathroom apartment is renting for $2,700-$3,100 per month, a two bedroom apartment with one bathroom is renting between $3,300-3,900 per month. 😳
- loanmasteroneLv 72 years agoFavorite Answer
The primary reason for the expensive real estate in the state of California is simply supply and demand. There are many individuals that reside in California.The demand far exceed the amount of available properties for sale or rent.
You also have the situation where there is little land to build additional houses or rental properties in the major cities of California. California is mostly concrete and cement. There is little land that you are able to build houses on. Normally to create large enough parcels of land to build rental units to rent,teh government has to take action by eminent domain, or condemn the property.
If you no longer want to pay high prices to rent or purchase a house in California you would be required to do as I did and move to different state. I moved in 2010 from Long Beach, California to another state.
At the time I rented a 2 bedroom, 1 bath, 800 square foot apartment. The rent at the time, was $1,300 and a the fee to rent a garage was $75.00.
The mortgage paid for a 3 bedroom 2 bath 1600 square foot, 2 car garage house on half an acre of land was less than half the rent. The cost to purchase this house had it been in California, at the time would have been in excess of $350,000.
I recently purchased and moved to a 2810 square foot house with 4 bedrooms 3 baths and a 2 space car port. My mortgage payment is a less than $1100 per month. If this house was n California, the cost to purchase this house would be in excess of $750,000
The decision is yours to remain in California and continue to pay the high rent and costly expense of purchasing a house.is yours. The cost of living in California would not go down.
As a matter of fact the cost of other expenses are greater in California than other sections of the United States. When gasoline was around $5.00 per gallon, the cost of a gallon of gas where I moved was around $2.50
Also California has one of the most taxed and costly taxes in the United States. I understand that your outstanding governor has just signed a bill that increase the tax on gasoline by 12 cent per gallon. What a guy!!!!
The only thing that might be less expensive would be the cost of food. California do not charge tax on food. The state I moved to charge a 7% to 9% tax on food depending on what city you reside.
When I was on vacation in California this summer to visit my children,I was amazed to find that California now charge 10 cent per bag by all retail outlets. What a state!!!!!
I hope this has been of some benefit to you, good luck.
- Skoda JohnLv 72 years ago
Supply and demand.
There are enough people who want to buy or rent that can afford that money.
- curtisports2Lv 72 years ago
The oldest rule in the book. Supply and demand. More people want to live in these areas than there is a supply for, and enough people have the money to pay those prices. The land is very valuable. It is the value of the land more than it is the value of what's constructed on it. The same house that is going for that kind of money, there, could be had for $100k to $200k here, depending on the town and school district. Yes, even where housing is cheap by your standards, the rule of supply and demand RULES. The $200k house is $200k and not $100k, because more people want to live in that town or send their kids to that school, and can pay for it.
- Anonymous2 years ago
Low income is $800,000 a year in America
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- GregLv 72 years ago
Supply and demand.