Trends in home ownership indicate that wealth is displacing income as a driver. Will unfortunately likely impact social mobility even more going forward. https://metrosight.com/articles/buying-a-home-your-income-may-be-less-important-than-your-family-wealth
This is what happens when wages don’t rise. Enjoy the era of trust fund superiority Edit: forgot to mention the stupid idiots on here that complain about how we’re privileged and make too much money. Yeah fk off
Tech salaries feel like 50s middle class salaries. Working people have been hollowed out
California is a dying state and unless it changes its policies rapidly you will continue to see the decline we have been seeing albeit even at a faster clip. Who wants to live in California anymore. Until a decade or 2 ago, people would pack their bags in search of their California dream from all over the country. Now whoever is there is not because they like it but by obligation (job etc.) and with tech already decentralizing and abundance of remote work, that hegemony is already gone. Hollywood is struggling, streaming has taken over with production scattered all over the country. It’s not a monopoly anymore Severe droughts and water scarcity is destroying the Central Valley agriculture. Now with all that add all the problems of crime, taxation, prop13, housing shortage, homelessness, etc. No wonder why the heck anyone in their right mind still live there (out of choice) And precisely because of some of the above reasons, the California dream became a nightmare for us and like many others, we left fir greener (literally) pastures and ain’t coming back …
Where'd you move to?
Greener sounds like somewhere with WATER!!!
Well duh. Housing prices for homes in my area are multiple millions. 300-400k income isn’t enough. Now you need to work at a faang and also have a spouse that works at a faang lol.
I don’t understand something about the finances in the USA. People buy ETFs with lower investment fee. Yet the high earners pay high state taxes and house prices that could have been invested and multiplied boosting their savings by a lot. People don’t even realize how much they yet to pay even after they move away from California, especially in things like state capital gains taxes. California is like that subscription service that wants you to subscribe and then forget to cancel due to high cost of switching. People just contemplate on moving yet they don’t. Covid has shaken it. Let’s see where we end up. Do California start to change itself or people start switching locations faster.
Prop13 is the reason. It is a barrier to entry put up by older homeowners against the younger generation. Thankfully WFH is taking some bite out of that.
Can you explain how is it a barrier ? As per my understanding, If you buy a sfh for 1.5 million, then property tax is 16 or 17k. For some reason, if there is a housing boom like pandemic and market price skyrockets to 2.5 million, then do you have to pay more property tax ? I don’t understand how I or you can pay more properties for just living in the property and salaries don’t keep up with housing prices. I think prop13 is preventing foreclosures and helping people who have fixed income and can’t pay more in taxes.
It’s helping those who bought earlier, thereby shifting the tax burden on those who are trying to buy now. It’s basically a subsidy to the older workers from the youngsters. Those who bought earlier pay lower property tax, but they use the same local services that are paid for by the taxes.