California’s economy strong, but leaves housing and the middle class in the dust

THC talks a lot about the housing crisis in California, and its underlying causes. We don’t totally blame you if you’re not inclined to believe  us 100%.

But what about taking it from someone who writes for the Wall Street Journal?

Allysia Finley, a regular contributor to the WSJ that focuses on California, recently had a piece run in the WSJ that explores California’s significant economic growth, and touches on a number of interesting topics. Among them: California’s boom is largely thanks to fracking, and Californians are leaving the state in droves due to higher housing prices.

Here’s a link to the piece: Uncomfortable truths behind California’s Economic Surge

From the article:

The state continues to defy conservatives’ predictions that its progressive tax and regulatory policies—from carbon “cap and trade” to limits on suburban sprawl—will strangle the economy. Democratic politicians tout California’s apparent resurgence as vindication for liberal governance. Yet the Gilded State is prospering despite the government-imposed handicaps, and for much of the middle class the economic luster is illusive.”

And:

Yet the exorbitant cost of living, driven principally by high prices for energy and housing, is pushing working-class families inland and out of state. Last year 109,000 more people left California than moved there, according to the Census Bureau. By contrast, Florida gained 207,000 and Texas added 126,000 net migrants. State data show that California refugees are mostly fleeing coastal counties for neighboring states.

What constricts the housing supply are stringent zoning and environmental regulations, which Democratic politicians in Sacramento have refused to relax. All this results in housing prices that could be fairly described as astronomical.”

Food for thought for all of you out there. Enjoy your THC homework and discuss!

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2 Responses to California’s economy strong, but leaves housing and the middle class in the dust

  1. Ted G says:

    I think it holds true for the Bay Area, Los Angeles & San Diego areas. Elsewhere? I’m not convinced that home prices would drop significantly unless you were to flood the market with new units. And that approach is the polar opposite of smart growth.

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  2. quacks like a duck says:

    Fracking…..which is mostly constrained to Kern country. You know what else is in Kern county? The single biggest water user in the state. Next time you drink POM water, know who else is involved in the wheeling and dealing. http://www.motherjones.com/environment/2016/04/lynda-stewart-resnick-california-water?utm_source=fark&utm_medium=website&utm_content=link&ICID=ref_fark

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