California No Longer a Desirable Place to Live
Although the Golden State used to be one of the most desirable places to live, many people have been leaving the state in recent years.
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The U.S. Census Bureau published data showing that California has 75,423 residents leaving the state during 2023. The number of residents has been steadily dropping since the beginning of the pandemic when many people found themselves in a challenging position of little to no work and outrageously high rents and mortgages to pay.
Many People Fled To Cheaper States
Many former Californians fled to Florida, Texas, and other southern states in an attempt to improve their work-life balance or find a cheaper place to live.
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The cost of living and income tax has become nearly unbearable for many residents of California.
Austin Woman Calling Out Californians for Ruining Texas
One woman took to TikTok to blame the new residents for the dramatic rise in home prices in the state.
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Her frustrations stem from many people moving to the state and promptly complaining about high housing costs.
Tech Workers Buying Property To Blame
Dani, who goes by @gasstationnachos_ on TikTok, posted a video ranting about the influx of California tech workers in her hometown.
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She says that tech employees who flocked to the state destroyed the Austin real estate market by inflating prices on cheap homes in a mass buyout.
Major Tech Companies Moving to Austin
Residents and employees were not the only people sick of the California tax rate. Many large tech companies moved their corporate offices to Austin to enjoy low corporate taxes and a new environment.
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Companies like Oracle and Tesla have moved their operations to Texas, forcing hundreds of thousands of workers to uproot their lives as well.
Frustrated Locals Left Without Homes
Since many California-based workers brought higher salaries, they could bid on houses well above the market price.
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Now, many Texas natives and Austin locals are unable to afford homes that were previously well within their budgets.
Mistakes To Learn From After the Golden State Migration
An important lesson from the mass migration of residents from California to Austin is that the real estate market is heavily dependent on many factors.
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The small amount of inventory forced home prices in the area to skyrocket. However, the prices are beginning to fall back to normal levels.
Austin Home Prices Falling
According to the Wall Street Journal, home prices in Austin increased by 60% from 2020 to 2022. The sweeping increase was caused by tech-based workers dishing out high offers.
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However, in the first few months of 2024, home prices have fallen around 11%.
Californians Left Without Buyers for Overpriced Homes
Due to the high prices that many Californians paid for their homes, many are unwilling to take a loss now that they want to sell.
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Dani notes in her video that no one in their right mind should be willing to pay the over-inflated asking prices for these homes. The new residents feel stuck now that they can’t find anyone with a higher salary than them who can afford such crazy asking prices.
Investment Properties Are Also To Blame
Another reason real estate in Austin has heated up so much is the exciting nightlife. Similar to Nashville, the Texas city has a booming music, nightlife, and culinary scene.
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One of the factors driving up home prices in the city was the increased purchases of second homes to rent out on Airbnb. The number of houses used as rental properties squeezed the market even more for home buyers.
Unknown Future for the City
The initial boom of workers moving into the city has worn off. Large companies like Tesla have also begun laying off employees to save on their bottom line.
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The future of the city and housing prices is currently unknown. Many sellers may need to take a loss to leave the city for good.