patrick.net

This is true. The price of real estate alone is obscene. A friend of mine moved to Houston when he lost his software job- decent apt complex two bedroom for 700 dollars a month. His wife found an ordinary job and he now travels around the country from IT gig to IT gig-the best is no state income taxes.

House prices are low in TX, but the tax can be upto 3% or more a year-so that makes the difference and unlike us, it can rise every year.

The only thing that bothers me about CA is the real estate prices. if the economy was like the dot com, with massive number of jobs-then fine it makes sense. It is coming back a little, and the salary/billing rates are creeping upward-but still.

I mean, maybe if I only lived in CA, I wouldn't think and just buy a 600-800k house, but after travelling the country and seeing prices elsewhere and most importantly what you get for that price-it is very difficult to plunk down a downpayment and go into debt for huge amounts. Now if you are running a business and doing rentals fine-in today's world just declare bankruptcy and walk. But I think the prices are unjustified.

Californians are fleeing to Texas, in large part due to high house prices (and cost of living in general). Texas has been mostly insulated from the bubble-mania but with more and more leverage-me-up-to-my-eyeballs-Californians moving to Texas, I wouldn't be surprised if Texas starts seeing their stability give way to real estate speculation.

lostand confused says

The price of real estate alone is obscene.

California's major cities, particularly San Francisco and LA, are a major bubble.