The state of California has some of the most expensive housing in the country. That creates a huge demand in the housing market, resulting in California has some of the most expensive housing in the country. At its most basic level, ... construction labor is about 20 percent more expensive in major California cities than in the rest of the country. But there are other reasons some areas are more expensive (location) as there are areas in S. Cal that are moderately priced, they just aren't on the coast or near a large city. Posted by 6 years ago. One of the major issues was that increased demand outstripping supply of housing in the San Fernando Valley (again, because of regulation), that large numbers of new developments and residents from the Valley would disrupt the ‘feel’ as well as the housing prices of TO. Berkeley students have to fork over around $15,000 per year But now it's $300-$500. Having such a strong economy means that the state attracts a lot of skilled workers in search of a high salary. They have an astronomical government budget because of their entitlements and to pay for that prices have to go up somewhere. May 15, 2016 By Stephen Frank Leave a Comment. Anonymous. When I lived in Thousand Oaks (1992-1996), the city had either just finished, or was in the process of implementing their small-growth regulations and plans. If you continue to use this site we will assume that you are happy with it. Why is california so expensive to live in? For anyone who has enjoyed California’s temperate-Mediterranean climate or spent time on some of its beautiful beaches, it is not surprising that such amenities come at a cost. In a state known for making extensive use of voter initiatives, this increasing level of regulation was the result of rising anti-growth sentiment following periods of rapid population growth. Figure 1 – Residential permitting rate and additional regulations adopted over time, California. Seems like that quote explains it pretty well. First and foremost, far less housing has been built in Californias coastal areas than people demand. In southern California near the ocean, anyway. Of course, this would be for a variety of different reasons but there is little doubt that cost of living was the reason for some of those that moved. As always, high housing prices in San Francisco and its surroundings are a product of the interaction between demand and supply. Featured image credit: Mikirk (Flickr, CC-BY-NC-SA-2.0). It is simply not sustainable anymore and the quality is quickly degra… While these demand factors certainly affect housing prices, supply factors—such as the number of homes available for purchase—are equally important in understanding why housing is so expensive in California. Answer Save. Please read our comments policy before commenting. Answer for question: Your name: Answers. What makes land expensive? ... She wants to go to Monterey, but why is it so expensive to live there? In some California cities, the average four-bedroom, two-bathroom home would set you back over $2 million, while a similar home would cost less than $100,000 in many other US cities. Santa Cruz living expenses is estimated to be at roughly 31% above the California average. the democrats with their one party system like to keep cost of living high so … In California, city and unincorporated county governments are given a significant amount of autonomy in how they manage land-use, which leads to regulatory competition among nearby cities. Let’s turn it over to Conor Dougherty, a reporter based in the Bay Area, for today’s introduction. Why is California so expensive? Good weather means a lot to people, and the mild year round climate is the reason why. Why is California so Expensive? Relevance. 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