California on verge of collapse. Housing crisis causing mass homelessness.

California's housing market continues to appreciate in 2024, despite record worst affordability. These rising prices are causing a housing affordability crisis that is leading to many people being homeless.

Particularly in Orange County, California, where real estate prices are up over 10% in the last year and where the typical value of a home is now over $1 million. Home prices and rents in California have gone up so much in 2024 that local residents cannot afford it.

And now many people are being forced to leave the state as a result. Almost every county in California is experiencing outbound migration according to data from the US Census Bureau. Including Los Angeles, Orange, and San Diego Counties. This is where home prices and real estate values are highest.

Many realtors in California are also now feeling the pain of this slowdown. Home sales in the region have dropped and buyer demand is very low due to these increasing prices.
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[ReventureConsulting]

Pretty absurd what's going on in California right now. Home prices up 10-15% YoY in SoCal despite record worst affordability.

Ultimately - this is not sustainable. Millions are leaving and at some point there will be a reckoning that causes prices to crash (as always happens in CA).

However - we need to see rising inventory for that to happen. Head to www.reventure.app to track inventory levels in your area of California and see if the market is moving in the right direction for you as a buyer.

[luisjoel-be]

housing prices are just insane!! its crazy. I’m a new dad, I moved from Tampa to Santa Clara a few years ago and I’m thinking of purchasing a single family home there. is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? Looks like NVDA, TSM and AMD and AVGO are strong buys this week.

[Falconlibrary]

I rented in Los Angeles because I couldn't afford to buy.
Before I moved in, the run-down one bedroom was $1800.
My rent was $2400.
I moved out and the landlord raised the rent for the new tenant.
The rent is now $3600.
That means the rent doubled in seven years.
Los Angeles just opened a new luxury apartment building, but it's only for the chronic homeless. No help for families or working people. As my sister once said, if you want help from the government, get addicted to crack or enter the country illegally.

[LupeBaptista]

Real estate can be quite a rollercoaster, the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate my entire $700k liquidity value to my stock portfolio or just stay 100% cash?

[scottbailey]

I have lived in CA my entire life. Only doctors and lawyers can afford these prices. Also, there has been a migration from the San Francisco Bay area down to Southern California because the bay area has been economically destroyed.

[ModMyMind]

Corporations should not be allowed to own single family homes.

[trevorwhat]

System’s broken. Courtesy of Central Banks (ie, the Federal Reserve). And foreign capital’s code for BlackRock.

[michaelferreira]

Foreign buyers should not be allowed to buy properties in USA. Chinese buyers destroyed SF where a lot of houses during last housing collapse were snapped off market by Chinese cash buyers.

[bhupesh]

70% mortgages are under 3%.

These people aren't paying $10, 000 a month in mortgages

[TheMonkeygrunt]

Chinese buying, especially in Orange County, is nothing new. That's been driving the prices up for years.

[Highside]

Thanks for doing SoCal. I live in SoCal and I'm a very patient prospective buyer. One factor that you left out which helps explain the cost of living is that pay in CA is very high compared to other places. For instance, we just moved from Pittsburgh where my wife (a nurse) made $75k. Same job in CA pays $160k. Our rent is only $1000 a month higher for a much nicer place. Other cost of living is not that much higher. Gas costs about $30 more per month, income tax is only 3% more. We clear A LOT more money in CA than we did in Pittsburgh and we have the best weather in the USA, perhaps in the world. Not for everyone, but we tried to move away (to Pittsburgh) and couldn't stand making less money and living in such a depressing place. We were out in 10 months. We know other people that tried to move away but came right back. The politics here are annoying but my response is always why did the conservatives leave and take over places like Oklahoma and other flyover hellholes and leave the best place in the US to the liberals? Come back and take the best place in the USA back instead of running away like a frightened child.

[andbeyondd]

I sold an apartment in Springfield and made about $250K. I was frustrated when I only earned $171 in interest from a regular savings account. After doing some research, I was advised to invest in stocks. Are these stocks a good point to start from?

[emptybuddha]

Many people can afford to live there because they bought property a long time ago and their mortgage payments are low and they earn high salaries. The new arrivals, that’s a different story…

[Clueless]

Born in Central CA, raised in Southern CA...CA is NOT what it once was😢

Throughout my lifetime, it has been highly regulated; but it is out of control! Crime has risen, and it is scary! The cost of living is astronomical...not to mention the fuel expense! And locals must compete with the foreign rich for housing!...😢

I love my State; and I feel stuck...😢

[dessereyamaro]

I left in 2015 bought a property in AZ for 185k for $1k/mth. I am glad I left at the time I did. CA prices are crazy there is Michael Bordenero who talked about how much foreign are buying which is around 54, 000 homes out of 6mil from 2009. This number is small it’s not foreign buyers buying up real estate it’s black rock large investors who will buy these homes and rent them. It is unfortunate that we allow Businesses to buy block of homes on a street and rent them out which will then kick out the people who are looking to buy houses. I don’t care if the weather is 70 degrees all year long living in poverty isn’t for everyone. Glad I left 👋🏼

[ocmetals]

Correction: People don’t hate living in California. They hate paying the high cost to live in California. They love living here and grit their teeth when they pay for it.

[audiophileman]

I'm a native Californian who's lived in California for decades in just about every region of the state. Your current assessment of Southern California is a good one. The political situation in California is the biggest problem; it directly causes the high cost of living in California due to gross mismanagement and just dumb policies. Now, what's your assessment of the Bay Area and counties to the east of the Bay Area?

[jeffreycheng]

"The Federal Reserve System is not Federal; it has no reserves, and is not even a system at all. But rather an international criminal syndicate."- Eustace Mullins.

[lauralong]

You mentioned that there is a restriction on building. Having been born and lived in SoCal my entire long life, I can tell you that our infrastructure will not support anymore building in outlining ares re: Riverside County and spreading out into the Desert area . Observing growth and traffic in the Bay Area as well as Seattle I’m observing the same Dilemma. Until there’s mass transit for commuters we are all going to suffer the consequences of housing inflation.

[MasonAvery-pj]

Fantastic video! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong??