California based The Net Lender recently issued a public advisory detailing how California is becoming a more expensive state to live in, due to a consistent increase in cost of living, especially when it comes to employment, energy, and housing.
According to CNBC, increasing numbers of California residents, especially those from lower and middle-income households, have been packing their bags and relocating to nearby states, such as Arizona, Texas, and Nevada. Financial experts assert that this domestic migration is primarily driven by the Golden State’s expensive real estate market and, for some, the high imposition of taxes. For example, online data show that the average cost of buying a home in the US was a little over $260,000 in early 2018. However, in California, the average price was approximately $470,000 for the same period. More info regarding financial options to address this without resorting to leaving the state can be found on The Net Lender’s website.
New research also revealed that people making $55,000 or less a year are mostly moving out of California, while those with lucrative degrees earning upwards of $200,000 a year are moving in. Due to continuous urbanization, most people from the middle and lower-income brackets find it difficult to keep up with the very high cost of goods, services, and other commodities. More details regarding domestic migration and California’s increasing cost of living can be found on CNBC’s website.
“The rate at which California has been losing people to other states has accelerated in the past couple of years, in part because of rising housing costs,” said Jed Kolko, Chief Economist from Indeed.com. His perspective is supported by a recent academic study showing that one-third of renters in California can’t really afford what they pay and are having trouble making ends meet. This is a common scenario in most of California, where housing is a big topic of concern and is even out of reach for upper-middle-class residents. The state’s very strict local zoning laws also contribute to keeping the housing supply low which only serves to drive up the cost of owning and renting homes in California.
Bill Jackson, previously a resident of California for more than 15 years, said, “No discussion can ignore the cost of living in California. Try to look up, “Why are people leaving California” and you will learn why it is incredibly difficult to live there. Everything is expensive, not just housing. After I packed my bags, sold my house and moved east, I now pay less for my current housing, electricity, gas, food, and even my monthly haircut—at the same chain. For example, I was paying about $0.25/kWh for electricity in CA, not easy to predict due to the tiered pricing system, and now pay $0.079/kWh, flat.”
Jackson added that even big companies like Toyota left California due to the state’s strict business regulations and over-taxation. Furthermore, statistics show that an estimated 1,800 companies have moved from California to major cities in Texas, New York, Nevada, Colorado, and other nearby states in 2016. However, small entrepreneurs looking to build their own business can learn more about the strategies involved in getting off the ground in a relatively short period.
Another former California resident, Chiara Brown, said, “It's very expensive to live in California. Housing, gas, and food are expensive. On top of these, there is a state income tax and various local fees as well. However, it's beautiful and fun and wonderful to live there too, if you can afford it. You can get roommates, shop at FoodMax or Winco, ride your bike as much as you can, and try to make it work. But if you aren't in tech and you want to actually get ahead financially, forget it. So in short, yes, it's hard to live in California.”
Californians looking for financial assistance may consider reaching out to The Net Lender. The company understands that a number of financial struggles may arise from living in such an expensive state, which is why they aim to provide Californians with a simple and efficient online application process, coupled with a repayment plan that is best suited for their needs.
More information about The Net Lender’s financial services can be found on their official website. They have also published a number of articles on their Press Advantage web page, which hosts useful tips and advice on how residents can cope with the rising cost of living.. Furthermore, interested parties may connect with The Net Lender on Twitter to stay up to date with their latest news and important announcements.
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For more information about The Net Lender, contact the company here:
The Net Lender
888-539-2184
The Net Lender California
