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.”
“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!