Seeking Affordable Living? Leave California Behind!

December 16, 2024 TruthUSA

Cities in the Golden State topped the ranks for areas with the highest proportion of million-dollar homes, as highlighted by a recent report.

The expenses related to renting, buying, and living in California are on the rise, according to new analyses.

In Los Angeles, housing costs are 137 percent above the national average, as per a report by Payscale, which specializes in providing real-time salary information. Utility expenses exceed the national average by 10 percent, grocery costs are up by 12 percent, and transportation, including gas prices, has seen an increase of 33 percent this year, according to Payscale.

Overall, the cost of living in Los Angeles is reported to be 50 percent higher than the national average.

The median home price in Los Angeles is approaching $1.2 million, with median monthly rent hitting $3,600. Energy bills average nearly $220, while phone bills hover around $212 per month, Payscale stated.

California also accounted for the top four metro areas with the greatest percentage of million-dollar homes in 2023 according to a study of U.S. Census Bureau American Community Survey data conducted by real estate lender Lending Tree.

In San Jose and San Francisco, a significant portion of homes were valued over $1 million, per the lender’s findings.

In San Jose, approximately 72 percent of homes were valued over $1 million, while nearly 57 percent of homes in San Francisco reached that threshold. These figures have increased since 2022, when 66 percent of homes in San Jose and 53 percent in San Francisco were valued at over $1 million, according to Lending Tree.

According to Jacob Channel’s report for Lending Tree published in November, factors such as limited housing inventory and substantial wealth from the tech and entertainment sectors have contributed to this scenario, with 44.02 percent of owner-occupied homes across San Jose, San Francisco, Los Angeles, and San Diego being valued at $1 million or more.

The trend toward purchasing million-dollar homes has become more prevalent nationwide since the pandemic, Lending Tree reported.

The 1970s brought bright colors to the facades of the homes on Steiner Street in San Francisco, California. San Francisco, San Jose, Los Angeles, and San Diego were the four metro areas in the U.S. with the biggest share of million-dollar homes. (Atosan/Shutterstock) — The 1970s brought bright colors to the facades of the homes on Steiner Street in San Francisco, California. San Francisco, San Jose, Los Angeles, and San Diego were the four metro areas in the U.S. with the biggest share of million-dollar homes. Atosan/Shutterstock

In 2023, roughly 11 percent of all owner-occupied homes in the 50 largest cities across the nation were valued at $1 million or more, an increase from nearly 8 percent in 2022, the report stated.

“In other terms, the share of million-dollar homes in the country’s largest metropolitan areas rose year-over-year by 2.86 percentage points, equating to approximately 1.32 million housing units,” Channel noted.

Lending Tree links the rise in home prices to a shortage of housing supply, indicating that the U.S. is facing a deficit of millions of available housing units.

“High prices are particularly impactful in large metropolitan areas, where restrictive zoning regulations can hinder new construction and worsen supply challenges,” the report explained.

In contrast, regions such as Cleveland, Ohio; Buffalo, New York; and Louisville, Kentucky, recorded the lowest proportions of million-dollar homes.

In Cleveland, around 1 percent of owner-occupied homes were priced at $1 million or more, while in Buffalo, that figure was about 1.2 percent, and in Louisville, it was approximately 1.4 percent.

Despite the lower incidence of million-dollar homes in these three cities, the numbers saw an increase from 2022, with nearly 5,800 new homes exceeding the $1 million mark combined.

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