California Real Estate Isn’t In Any Real Trouble BUT Residents Seem To Be!
California is losing its most valuable resource: its people. Despite stunning landscapes, abundant natural resources, and some of the most stunning weather conditions in any of the Americas, misguided policies by the state government have forced this Golden State into irrelevance. If you search any real estate MLS you are likely to find balloon-like pricing regardless of location (the Covid pandemic has been somewhat to blame but still..).
Many of these actions can be linked back to local and state elections. Local and state elections often impact people’s lives more than general elections, with California serving as an excellent example.
States are democratic laboratories where citizens vote with their feet. California’s decision has proved unpopular; nearly 370,000 more leave each year instead of moving there. The state is in such a precarious financial state that California could not hold onto a seat in Congress at first since the census of 2020.
Why are people leaving California? The state’s misguided policies have made California’s financial situation a dire emergency.
California is simultaneously increasing the demand for electricity and restricting access to renewable power sources.
Due to California’s prolonged lockdowns during the epidemic, which were severe and extended for so long, its economy suffered significantly. Unemployment claims were extraordinarily high, and there weren’t enough funds available for unemployment compensation claims; thus, California is owed almost $18 billion by Treasury’s unemployment trust; this will be covered by increasing tax burdens on state-owned companies.
According to reports, California already boasts some of the most tax-efficient rates in America. Its highest marginal income tax rate of 13.3 percent and a sales tax rate of 7.25 percent is among the highest rates found anywhere. It has some of the fifth-highest overall and state costs as well.
California boasts one of the most tax-efficient corporate tax rates, ranking third for business tax environment. On top of that, it imposes some of America’s highest diesel and gasoline taxes at 68 cents and 100 cents a gallon, respectively – making it a beautiful business climate for entrepreneurs.
Over the past two years, 22 states have reduced their individual and corporate income tax rates, leaving California in the dust.
Californians are being hit hard financially while elected officials push for increased reliance on costly “green” energy sources despite having one of the highest electricity prices in America – 80% higher than its national average. As a result, residents in California are facing an unprecedented increase in living costs; it’s no wonder people are leaving at such a rapid rate.
Where they’re going is equally intriguing. Californians appear to be fleeing for states such as Arizona, Colorado, Florida, Nevada, Oregon, Texas, and Washington state. Furthermore, the states listed vary concerning political beliefs – suggesting that California’s issues lie more with policies than political parties.
Democrats or Republicans can both express an opinion on ineffective or counterproductive policies on the tax and real estate market.
Non-Citizens Cannot Vote in California Judge Rules No, Even in Left-Wing State!
Texas, which is heavily Republican in terms of political power, has seen an alarming increase in its dependence on unreliable “green” energy sources. As a result, Texas experienced widespread blackouts caused by solar and wind problems during the winter storm of 2021; however, blackouts are also commonplace in California.
In California, people are leaving their homes in droves, but the state can’t provide electricity to those still there. To prevent blackouts that spread throughout the state, residents are instructed to set their thermostats at 78 degrees, don’t use big appliances, and avoid charging electric cars. Ironically enough, California will also impose a ban on vehicle sales of non-electric models within several years, meaning those people won’t even be able to purchase their only option of a car.
Given the myriad of public policy problems revealed at the federal level, it should come as no shock that California is in deep trouble. California may be sinking like the Titanic, but at least she was lit up as it went down.