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A comment on The Ultra-Rich Are Flourishing and Sticking Around in California.

Re:The Ultra-Rich Are Flourishing and Sticking Around in Cal... by game_the0ry on Tuesday August 01, 2023 @03:11PM (#36961000)
I grew in upper middle class southern California. I work in tech for the last 7 years.

My parents house went from $500K when they bought in 1995 to +$3M today. If my math is right, that would mean the all-in payment (principal, interest, taxes) would be around $20,000/month at today's rate. Assume you do not want to spend more than 1/3 of your income on housing, your household would need to make $720,000/year.

Nominally, I make a lot more than my parents did at their peak, but in real terms, I can't afford a home in the neighborhood I grew up in.

Anecdotally, the only people I know that can afford to live in my old neighborhood are young people who get help from their parents or people who bought way before covid and rolled up their existing equity into their new home purchases. Among the upper middle class people I know, no one can afford that area or they are not interested bc they think the cost is not worth it.

What's going to happen to the firefighters, cops, and teachers in that area?

[ Parent | on HN ]
Re:The Ultra-Rich Are Flourishing and Sticking Around in Cal... by riku_iki on Tuesday August 01, 2023 @03:28PM (#36961303)
Its modern form of feudalism, those who secured low rate loans, pay low prop13 taxes and benefited from equity bubbles are allowed to live good life, others have to serve them for pennies and miserable life in exchange.
[ Parent | on HN ]
Re:The Ultra-Rich Are Flourishing and Sticking Around in Cal... by jseliger on Tuesday August 01, 2023 @03:29PM (#36961335)
CA zoning is doing its work: https://www.worksinprogress.co/issue/the-housing-theory-of-e...
[ Parent | on HN ]
Re:The Ultra-Rich Are Flourishing and Sticking Around in Cal... by 71a54xd on Tuesday August 01, 2023 @03:38PM (#36961499)
Same thing is happening in Austin. It's sad.
[ Parent | on HN ]
Re:The Ultra-Rich Are Flourishing and Sticking Around in Cal... by game_the0ry on Tuesday August 01, 2023 @03:59PM (#36961807)
At least prices have been coming down in Austin. Same needs to happen in CA, but there are going to be a lot of bitter and distressed home owners.
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Re:The Ultra-Rich Are Flourishing and Sticking Around in Cal... by threatofrain on Tuesday August 01, 2023 @04:05PM (#36961910)
When in tension, the needs of people who have a job but cannot buy a home ought outweigh the needs of people whose financial strategy hinged on housing speculation so badly that their income cannot deal with the fallout.

Of all things the state should be encouraging or building safety nets for, housing speculation should be in last place.

[ Parent | on HN ]
Re:The Ultra-Rich Are Flourishing and Sticking Around in Cal... by squid_fm on Tuesday August 01, 2023 @04:03PM (#36961871)
I’m in a similar boat and it is very frustrating.

My gf and I are fortunate to earn high incomes and it still difficult to find acceptable housing.

Like you, I knew many upper middle class kids when I was younger. The only ones who have purchased houses (so far) are the ones who received help from their parents.

[ Parent | on HN ]
Re:The Ultra-Rich Are Flourishing and Sticking Around in Cal... by linguae on Tuesday August 01, 2023 @04:06PM (#36961922)
Unfortunately essential workers who don’t make extremely high incomes typically face grueling commutes from far-flung areas or they live in cramped conditions. While living with tons of roommates is sometimes done by single people, for families with children roommate situations are quite undesirable, and so megacommuting is often the only option for those who can’t afford to rent or buy closer to work. I’ve heard of San Jose police officers who commute from Los Banos, a Central Valley town that’s roughly an 80 mile drive away. I believe Tesla’s Fremont factory has a bus for its workers that starts all the way from Modesto. When I lived in the Palmdale area 15 years ago for a summer to do an internship, I saw commuter buses that went all the way to Westside Los Angeles, which is 75 miles away.

Having to commute 3-6 hours per day round-trip is grueling, and it’s sadly the reality for many Californians who do it because they can’t afford to live closer to work.

[ Parent | on HN ]