In San Francisco, (likely the most expensive place to live in California because it is beautiful there) has been taken over by Silicon Valley millionaire techies which are driving out 3 to 5 generation San Franciscans from the City and the state at this point where 200,000 to 400,000 dollar homes are now going for over 1 million dollars throughout the city. People cannot afford not to sell and if they are renting they are driven out by landlords wanting to sell. This sort of thing is happening up and down the coast of California because if you don't want smog the coast up and down is the best place because of the clean air off the pacific most of the year with 5000 to 6000 miles of open ocean and rain to refresh the air coming from Asia.
There are likely more millionaires including Silicon Valley Techies in California than anywhere else in the world. Because if you don't have enough money you can't live here (on the coast) and have a good life anymore. You can live inland, however, and it isn't as expensive as the coast. So, if people are attached to living on an ocean they go to Texas to Florida or up the Atlantic Coast. Because from San Diego to Seattle things are sort of expensive all along the West coast now partly because if you live on the ocean the air tends to be clean most of the year because the prevailing winds are west to east right off the ocean. Also, there are many beautiful views of the Pacific Ocean up and down the coast.
For example, you might sell your home here for around 1 million dollars and get something really amazing in another state that might be 5000 square feet. But, here 1 million dollars at most will buy only 2500 square feet of home with a yard. And renting something like that might be 4000 to 10,000 a month to rent at various locations in the state.
Also, the 1 million median price of homes in San Jose is because of Silicon Valley Techies and is also why they commute to San Francisco because they get a better deal for now in San Francisco but this is driving 3 to 5 generation San Franciscans out of their homes who are middle Class or below.
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Why people are leaving California
A lot of people are moving out of California because they can't afford to live there anymore.
For every home buyer coming into the state, there are three Californians selling and moving elsewhere, according to data analysis firm CoreLogic.
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And a number of its local markets are prohibitively expensive. Of the five priciest housing markets in the country, four are in California, according to the latest data from the National Association of Realtors. San Jose tops the list with a median home price of $1 million.
Related: I pay more than half my income in rent
But incomes just haven't kept up with the home price bonanza for many people -- particularly for the working and middle class.
Despite strong job and wage growth, the Golden State has been losing residents for years and could be facing a shortage of middle-wage workers, according to a report from Beacon Economics released in March.
For instance, California's tech scene has been prosperous, but its benefits have been somewhat concentrated.
"All the gains aren't coming in support of the rest of the economy, they're coming at the expense of the rest of the economy," said Christopher Thornberg, founding partner of Beacon Economics. "Folks in the tech industry make craploads of money and they can afford to live there and will force out other people."
Plus, California is still a magnet for foreign buyers, who tend to be more affluent.
"It makes it harder for the average person to make a living there," said Khater. "So that means less teachers, fire fighters, retailer workers. It's causing the entire state to become more expensive."
To help make life more affordable, residents are trading the beaches and nice weather for states with more affordable housing markets and a lower costs of living. Places like Arizona, Texas and Nevada, according to Khater.
And when it comes to buying new homes, they're getting more for less. Last year, California migrants sold their homes for an average of $495,500, and only spent $315,000 in their new -- and often bigger -- houses.
"They are saving money and moving up market," said Khater. "You can increase your standard of living."
Related: Who's to blame for Portland's soaring home prices?
Karen Francis and her husband left the San Francisco Bay area in January after he was offered a job in Vancouver, Washington. While their move was career motivated, it's been good for their budget.
They now own a 2,600-square-foot home that is almost double the size of the place they were renting in California.
And it's not just their housing costs that have shrunk. The couple, which have an infant daughter, are also paying less in gas, utilities and services like garbage collection. And commute times are significantly better.
"You have to drive 20 minutes to get anywhere in Silicon Valley," the 28-year-old said. "Here, the drive to the store, church, gym where I workout, everything is 10 minutes or less."
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