This article by Benjamin Noon at Beacon Economics, caught my eye and wanted to share. We hear all the time that “everyone is leaving California”, but there is another trend they are finding…
“Over the past few years, it would have been difficult to miss news coverage reporting that people are leaving California for states like Texas and Florida. While this outmigration is important, Beacon Economics has identified a larger, and growing, dynamic that affects far more Californians and their decisions about where to live.
Our analysis finds that residents of the Golden State are not moving to different housing within California as frequently or fluidly as they used to. Instead, they are remaining in their current housing longer. This is a more worrisome trend than residents leaving the state because it indicates a deep and pervasive problem connected to long-term economic inefficiency – and something that has very real consequences for people’s lives. One of the most notable examples are renters in the state, who have seen an almost 20% decrease in their residential mobility over the past ten years.
Beacon Economics identifies multiple reasons for the decrease in in-state mobility among Californians. The primary one being California’s famously high housing costs. If housing costs prohibit workers from moving to where their labor is most valuable – i.e., where they will be paid the most – then we have structural barriers that will prevent California from having a truly dynamic, productive economy, and will deny Californians the chance to seek a better life.”
Click here for the full article.