By Melissa Wirkus
As housing becomes more expensive for just about everyone, people from
one of the most expensive and coveted housing markets are now setting
their sights to the Lone Star State.
Yep, you guessed it. Californians are packing their bags in increasing
numbers and moseying on over to Texas. And the reason behind this recent
change of heart for Californians is in the less expensive housing they
find just a few states over.
An October 22, 2006 article by Jean Kwon of The American Statesman,
“The Californians are coming – and buying,” discusses
the influx of Californian’s into Central Texas’ affordable
housing market
“Lured by Central Texas' natural beauty, similar climate and cultural
diversity, Californians are heading southeast of the Golden State. What's
driving the exodus? The sky-high cost of real
estate. While Austin residents grouse about rising real-estate values
and property taxes, Central Texas looks like Bargain City to someone
moving from California.”
“The past decade saw an eye-popping surge in home values, with
prices more than tripling to a median $576,360 this year from $175,000
in 1996, according to the California Association of Realtors. Less than
14 percent of Californians can afford to buy a median-priced home; the
national rate is 50 percent.”
With that few of people able to afford a house in California these days,
something was bound to give.
And now, as the national housing
market starts to stall (especially throughout California), residents
are going to have to turn to other venues – one being good ol’
Texas.
With so many Californians coming into Texas, it has helped their housing
market tremendously, as others are slowing down across the country.
“Austin-area real-estate
agents credit the steady influx of Californians to Central Texas
with keeping the market here strong, even as other parts of the country
cool off. ‘They are sure helping to keep our prices stabilized.
In some neighborhoods, the prices might be actually being driven up,’
said Lynda Conway, at JB Goodwin.”
“And the trend isn't likely to abate: in the past few months alone,
at least three California companies have announced plans to move to
Austin, including a major money management firm, an online learning
company and a company that makes components for the electronics industry,
according to the Greater Austin Chamber of Commerce. All are bringing
with them employees with money to spend in homes.”
One of the main reasons that Californians are coming to Texas in increasing
numbers is that they can get a lot more house for their money than they
could get back home. “Californians are among the most affluent
buyers in the Central Texas market, with some of them buying
homes in the $1 million to $5 million range, said Cord Shiflet,
an agent with Moreland Properties who handles many high-end properties.
To them, ‘it's a joke as to how cheap we are and the amount of
bang for the buck you get, so they get really excited about how far
their money will take them.’ Many are able to put down sizable
down payments while in most cases they ‘upped the size of their
home by at least three times over what they had sold,’ said Louise
Peach, an agent with JB Goodwin.”