We Chinese in America Media Editor Tang Zhao, April 10, 2022】 California home prices are growing fast. (Soaring Housing Price Image from Forbes)

Home prices have surged over the past year, with low inventory and low interest rates pushing the median U.S. home price up nearly 20% in a year. And this surge is the largest in 20 years, especially in California. Home prices in most California cities have risen sharply since 2000, with many doubling or even tripling, and the top six cities in the nation for home price growth are all in California. But many Southern California residents aren't worried about being in a real estate bubble, arguing that there's no substitute for local properties.

According to data analyzed by real estate brokerage firm Clever, San Francisco, the nation's highest-rising market, had a typical home price of $356,800 in 2000. But by 2022, the typical house price is nearly $1.4 million, a 290 per cent increase and almost four times what it was 22 years ago.

San Francisco is often cited as the most extreme example of a runaway housing market, but it's not the only city in California to see astronomical price increases. Clever analyzed median home prices in the nation's 50 largest metropolitan areas and found that in 13 cities, home prices have more than tripled since 2000. In addition to San Francisco, the top six cities in California are Los Angeles, Riverside, San Diego in Southern California, San Jose, and Sacramento in Northern California., the increases were 280%, 278%, 275%, 261%, and 237%.

About 20 years ago, a typical home in Riverside or Sacramento was easily worth less than $200,000. But now, according to Clever, the median home price is $544,000 in Riverside County and $583,000 in Sacramento.

San Diego was slightly more expensive in 2000, with an average home price of $231,000. Today, the same house could be worth $858,000. The median home value in Los Angeles in 2000 was about $231,000. It has jumped to $878,000 by 2022, an increase of 275%.

During the same period, the national average increased from $127,215 to $325,677, an increase of 156 per cent or about 2.5 times, according to Clever's full report.

A Los Angeles resident who just moved to California a few years ago, bought a house in Los Angeles four years ago. She said that although many people have claimed that California is seriously losing its population, or that they are leaving due to high taxes and security issues. But in fact, California's big cities such as Los Angeles are still very longing for people in other parts of the country. In addition to the irreplaceable natural geographical features, there are also the pillars of the entertainment industry, the film and television industry and the technology industry. There is no other American Cities can shake.

Even if other cities attract investment, Silicon Valley and Hollywood have built international fame after all and will always attract practitioners from all over the world. She said many people believe that California's already high home prices may not increase more than elsewhere, and the marginal benefit will be smaller. But she believes that there will still be a Matthew effect in the future society, that is, it will become more and more polarized, and the bigger the city, the more people will be attracted.

Another hone owner who has lived in the San Gabriel Valley for more than ten years, holds the same view. He believes that this is why although the number of outflows is large, the number of inflows is even greater. Although the housing price in California is already high compared with other cities in the United States, it is unlikely that it will fall sharply. After all, there is still such a serious housing problem, and houses are a scarce resource.

On the other hand, even though California house prices are expensive, because the city is not dense, the unit price is also expensive in general. However, for residents of New York City and many developed Asian cities, such as Shanghai, Hong Kong, Tokyo and other places, California houses are cheap and affordable, and it is still a big city, with all the necessary consumption or work resources, and the quality of life will not be decline.

(Source: World Journal)

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