anybody that is smart with their money would not live there.
I don't understand that logic. Is gas higher? Sure, but that may be an additional $100 extra per month. Is food, in some instances, higher? Sure, but that is a limited amount unless you are eating in certain specific areas where fast food is more. Is property higher? Sure, but if you own the property, it works in your favor. Historically, California real estate has been as strong as you can find in the country. People in my neighborhood are making a killing right now. Many areas have seen great appreciation over the last three years, but if the same percentage, the gains are bigger here due to the property being more. People are clearing $400k - $1MM routinely after just a few years of ownership.
These people can pay cash for a house twice as big in many other states and still have a bunch of cash left over to donate to Democratic politicians in those new states and help them get elected.
This is the street over from me. The guy made $1MM in four years:
See photos and price history of this 5 bed, 7 bath, 4,486 Sq. Ft. recently sold home located at 209 Topaz St, Rancho Mission Viejo, CA 92694 that was sold on 06/07/2023 for $2499000.
www.realtor.com
My street. The guy will make $400k in 4.5 years:
16 Alienta Ln, Rancho Mission Viejo, CA 92694 is pending. View 43 photos of this 4 bed, 3 bath, 2474 sqft. single family home with a list price of $1275000.
www.realtor.com
My street. $400k+ in 4 years:
37 Alienta Ln, Rancho Mission Viejo, CA 92694 is pending. View 43 photos of this 3 bed, 3 bath, 2307 sqft. single family home with a list price of $1229000.
www.realtor.com
This house sold for $800k in 2016 and will get twice that much now:
62 Cerrero Ct, Rancho Mission Viejo, CA 92694 is for sale. View 63 photos of this 3 bed, 3 bath, 2184 sqft. single family home with a list price of $1595000.
www.realtor.com
This guy will profit $1MM even after realtor fees in just 3.5 years:
18 Melody Ln, Ladera Ranch, CA 92694 is for sale. View 49 photos of this 5 bed, 4 bath, 3600 sqft. single family home with a list price of $2000000.
www.realtor.com
$2MM profit in two years:
4 Thomas Rd, Ladera Ranch, CA 92694 is pending. View 4 photos of this 5 bed, 7 bath, 7424 sqft. single family home with a list price of $5995000.
www.realtor.com
As a percentage, houses in my other area in CA haven't appreciated as much, but the real estate there is more, so the growth amount is as much.