In the Bay Area alone the median price of homes recently surpassed $900,000. Not enough housing is being built and what housing exists is outrageously expensive. But the price of housing is not the only reason Californian’s are moving in droves.
So what does make Californian’s throw their hands up in the air and declare “I’m finished!” It’s the price of childcare, the traffic, dirty streets, the prospects of retirement, to name a few.
Many people look at the prospect of retiring and they simply cannot see a day when they can retire with the high cost of taxes, gas and even groceries.
To give you an example, in San Francisco, any income under $117,400 is now considered low income. Whereas, $73,300 is considered very low income. In other areas, like Marin County and San Mateo County low income is also considered $117,400 or less. One year ago that figure was $105,350 where only 1 year before that low income was $98,500. That is an increase of 16% in two years. Alameda and Contra Costa Counties considers low income to be $80,400 and these figures are expected to rise by 10% within the next year.
Finding employment to match those figures is hard to come by. But more importantly finding a job with an annual pay increase of 8-10% to keep up with inflation is even harder to come by. Thus the prospects of being able to retire for many is down right scary.
Even the cost of groceries in California are more expensive. San Francisco, Redwood City and South San Francisco spends 30% more for groceries than the rest of the country. A gallon of milk costs $2.59, in Boise Idaho it costs $1.77 a gallon. A loaf of bread will run you $4.97, in Boise Idaho it will run you $1.48.
Interestingly, Oakland, Berkeley and Hayward residence spend 6% more than those in San Francisco. The cost of buying a loaf of bread or a gallon of milk may not break you. But when you are filling up an entire shopping cart for a family of four to five, it really adds up fast.
The cost of traveling is also prohibitive. To cross a bridge in the Bay Area can cost you as much as $6 or higher. The gas tax in California is currently set at $0.42 per gallon. Add that to the fact that Californians already pay about $0.50 higher than the national average and the cost of getting too and from work is a real concern.
In the last year over 1,000,000 Californians have moved out of the state with the largest exodus coming from the Bay Area. But you cannot pin the exodus one thing. Traffic jams, child care costs, crime rates, inflation and cost of living, poor roads, and many more reasons are to blame.
Src. SF Gate, SF Chronicle