The tectonics of the California real estate market

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Mr. Dener works in finance and Ms. Dener works part-time in e-commerce. They briefly considered moving to Southern California, but after last year’s violent bushfire season, they decided the risk wasn’t worth it. Living in Texas will offer a lower cost of living and therefore more peace of mind, she said.

“Finance will not be the determining factor in every decision,” she said. “It gives us the opportunity to enjoy life.

In April 2021, the median selling price for a single-family home in San Francisco County was $ 1,800,000. In Sacramento, 100 miles northeast, where house prices have jumped 22.5 percent from last year, they were $ 490,000.

“The market has caught fire in the past 10 months and migration has skyrocketed,” said Ryan Lundqvist, a real estate appraiser in Sacramento who also supports blog about the housing market in the Central Valley. “We have increased migration from the Bay Area, and there are also so many local buyers for whom Covid was the catalyst for this decision to live in remote areas.”

While San Francisco and Los Angeles saw population decline in 2020, the California Policy Lab found: “no evidence of clear exodus from the state“, Adding that” the pandemic has not so much pushed people out of California as it has forced them to move within it. “

It has also changed where these people do business.

Ryan Swehla, co-founder of commercial real estate firm Graceada Partners in Modesto, California, has seen low-rise office rents skyrocket throughout the pandemic. California’s Central Valley, which includes the state capital Sacramento, as well as cities like Fresno and Stockton, has grown steadily for decades and now, he says, is benefiting from the brain drain of tech workers fed up with traffic jams and inflated Silicon prices. valleys.

Before the pandemic, things were in full swing – computer software company Zennify tripled its workforce in Sacramento in 2019; The Intel campus in nearby Folsom was founded in 1984. But now that many Bay Area tech companies have moved to remote or hybrid work, tech workers are increasingly turning to cities like Sacramento, 90 minutes by car from San Francisco, and local tech companies. moving in an attempt to attract them.

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