Small cities in America’s Mountain West are booming
economist.com
economist.com
I'm personally doing just this. I was lucky enough to land a good job out of college, buy a house in a desired area, and see it appreciate in the last 10 years. This increase plus the birth of my kids left me wondering if there wasn't a better route than continuing to need a FAANG salary to afford a larger house and private schools.
Due to this we are taking advantage of the remote work opportunities that have opened up due to the pandemic and are moving to the place we spend all our time anyway: a small town in the mountains. We get to do the things we want to do, have more space for our kids to roam, and a better quality of life without the stress of constantly needing a good performance review.
I understand this is not for everyone and I understand the negative perception of 'outsiders' pushing the price up for locals, but at the end of the day I'm optimizing for my own quality of life. I can't think of a better use of the money I've earned doing what I love than to provide a great life for my family.
The irony is that most educated people living in small towns want to get out, and a generation or two after they do they want to go back. Will the cycle repeat itself?
But it won't "all else equal", there are so many variables at play here that it's meaningless to talk about a hypothetical "all else equal" scenario. Also there have been so many successful people who were born and raised in what you'd call "less competitive" areas.
>The irony is that most educated people living in small towns want to get out, and a generation or two after they do they want to go back.
What's ironic about people going to places chasing things they desire? Big cities and small towns offer different things, and those things value differently to different people. The people who are leaving small towns chasing after opportunities and the people who want to move back to small towns from big cities are obviously at different stages in their lives and value different things.
>Will the cycle repeat itself?
Probably? But why is that an issue?
But tech transplants by and large should not be considered typical residents.
What you say definitely does have elements of truth to it, but I’d wager the effects of parenting and income are, on average, much larger than your direct setting when it comes to succeeding beyond the median of their peer group.
In SV, the pressure on kids and parents seems extreme even at the median. While there are less opportunities and resources overall in a small metro, it’s all available to an ambitious child.
In the end, at least some small town kids are out-sprinting the “competitive city” kids and taking their loot back home. Otherwise we wouldn’t have all these articles about it.
Doesn't seem like you know much about small towns. I grew up in one. The educated people are there because they want to be. That's sort of by definition, and follows from the fact that they're educated -- they have been somewhere else (you don't get "educated" in a small town, not in the way you mean), and they chose to go there.
The ones who want to leave are the uneducated ones, who would love to have an opportunity to get "educated" in that sense.
Your kids all else equal will be outsprinted by kids who live in more competitive cities
Not everyone wants to be part of this rat race you're talking about, nor do they want their children to be. Having ended up at FAANG (despite my small town upbringing), I talk with a lot of young people (interns, new hires) who are products of this rat race. By and large my impression is that:
1. They haven't lived much. They haven't done many things. They've been too busy in their competitive classes in competitive schools trying to get into competitive schools.
2. They don't seem very happy. They tend to be high strung. Nervous seeming. Scared of failure.
that decision will ripple through to future generations, e.g. your grandkids will be less educated.
How would you even know this? How do you know parental education status isn't the real factor?
"The educated people are there because they want to be" the parents, sure, but their children are there because the parents chose for them.
"1. [children from big cities] haven't lived much. They haven't done many things." Are you seriously suggesting that there are more things to do in Boise than Manhattan?
"2. They don't seem very happy." That certainly described everyone I knew who wasn't a cultist in Salt Lake City.
In my experience, the ones who want to leave are the smart kids who find their surroundings culturally stifling and intellectually decrepit.
It's not about how many things there are to do. It's about what life experiences you've had.
I'm not talking museums here. I'm talking working tough jobs, dealing with addiction or death (in family or acquaintances, having a job, living on your own, etc etc. The kids I'm talking about have had very sheltered lives.
That certainly described everyone I knew who wasn't a cultist in Salt Lake City.
We may have different definitions of "small town". Salt Lake City is unique in many ways and not representative of rural or rust belt small towns.
That’s absolute horse shit.
And whilst I don’t have any evidence to sprout, I think that those from more diverse and unusual backgrounds are better adapted for modern life. Growing up in a ‘competitive’ city is a licence for blandness (opinions mine)
Similarly, I'd be virtually certain that children who grew up with a Tesla as their family car are much more likely to attend elite universities. That doesn't mean that Elon Musk has solved the problem of getting your kids into Harvard. It's just that Teslas are expensive, and therefore rich, high-achieving families are more likely to own them.
Take for instance the bevy of amazing mathematicians produced by early 20th century Budapest. That wasn't just genetics, it was the culture of the city and the teachers those people had. Likewise you could look at the rise of soccer greatness in Rio; that wasn't genetic, it was due to features of life in Rio and a culture of passion for soccer.
IQ is less important and more malleable than you think. It should be called nutrition and nurturing quotient instead.
That's up for debate in some circles.[0]
[0] https://slatestarcodex.com/2017/05/26/the-atomic-bomb-consid...
Or are you claiming something else?
Desirable towns popular with outdoor recreation enthusiasts are generally not suffering any sort of widespread brain drain issue (if anything, they have the opposite issue - too many highly educated people, not enough of the people to do the jobs lower on the ladder).
They have about nothing in common with some rural town in the Great Plains that's been slowly depopulating for a century.
Practically, probably not. Few people talk about that, most dont.
Most will move for affordable, but wont necessary like abrupt change from FAANG and big city to small city and not much to do. They will need to adjust to different culture, new hobbies, find new friends, everything.
And that is not even speaking about those whose partners dont want to move, whose partners have jobs, friends and social networks they like/need. And that is not even speaking about the "what with kids does this makes sense to them" topic.
Say you liked boardgames with friends. The new city have different people, the play different games, you dont like either new games or new people. Say you liked swimming and the swimming pools in new city are too full or otherwise dont suit you. You liked going to local beginner art/dance club, but new place dont have equivalent.
Moving to different place, especially when the environment changes comes with changes in lifestyle you may or may not welcome.
But I don't really see location as a major factor in most hobbies. I grew up as a military dependent and can't remember giving up hobbies just because we moved. You can almost always find ways to continue them.
So you end up with the wealthy newcomers only interacting with other wealthy newcomers. Essentially a new culture in a place that had an established culture for years before hand.
That's just not going to happen though. The newcomers have nothing in common. Life experience, wealth, religion, ideology, none of if. And then the top it off by showing up and changing the place both intentionally and unintentionally. No wonder the locals don't want them around.
Versus in the city I live in now, there are almost a dozen public courses in a reasonable drive. Dozens of car dealerships. Dozens of hiking trails. Dozens of beaches. Dozens and dozens of everything. I can vet options. I can do the same activity in different settings easily. If I am in one area of town, I have flexibility to find options in that area rather than going with my usual option close to me. I have choice. I have agency. I can take my business elsewhere if I need to, and come out better from it thanks to this huge population being able to support a variety of choices for any niche interest I might have.
And of course in the old days the argument was you could just make do with online shopping. But these days the signal to noise ratio on the internet is so pathetically low, I really value actually holding an object I buy in my hand before I get fleeced buying something online once again. Reviews can't be trusted. Images can't be trusted. I trust my eyes and my hands and if the price is fair, taking it home with me is the best deal on shipping there is. Being in a huge city means there are a lot of brick and mortar businesses. Businesses that probably closed years ago with the death of main streets in smaller cities and towns, but thrive here thanks to a huge population being able to sustain more businesses in a given area, even if many people opt to online shop.
No doubt plenty decide to stay but for many it was always a temporary move.
Sadly in the US many dense cities have abandoned the things that kids like to do, leaving those who like city things to the suburbs as the best compromise.
I know someone who started a children's museum, when she started the city tried to get her downtown with some nice incentives. She didn't though because there are zero kids who live downtown, and the next ring (in city limits) is either rich no kids, or too poor to afford a to visit. That means everyone who might go is going to drive from the suburbs and so a location with free parking in the suburbs was better able to attract visitors, even though it means half the potential customers will find it too far to drive, the other half will find it more convenient and thus come more often.
I don't know how cities can solve that, but it is a problem repeated in most cities. It didn't used to be that way, cities used to have a lot of people with kids. In general cities have abandoned families as families moved out (you can find lots of people pointing blame as to causes here - I'm not going to speculate), and it will be hard to bring them back. Not all cities have done this as much as others.
at least in my area, I wouldn't say the city has "abandoned" families. rather, it has focused mainly on improving public education for children from poor families. this is a noble goal, but it imposes tradeoffs that the middle class families are mostly unwilling to accept. since they have the ability to leave, they do.
That is true. If my daughter hadn't gotten into a good charter school in the city, I wonder if we hadn't looked a lot harder at moving. However after we did eventually hop over the county line my daughter still 'commutes' back into the city because she doesn't want to change schools.
Suburbs can restrict their schools to those that can afford to live there, so those public schools can have very few kids from lower socioeconomic classes, and a greater proportion of kids from people who are in higher earning professions.
I'm familiar with the argument that the cohort of students matters more than the quality of instruction. in fact, that is what I'm getting at here. the city has an explicit policy of mixing students from different backgrounds across the school system, the goal being to break the cycle of poor students going to poor schools and staying poor. it's a good goal, but it seems kinda pointless when all the students they are trying to mix them with are fleeing to the county.
Sometimes it's the school, not the school system.
I grew up middle class in a upper middle class school district, with attentive and loving parents. My mom stayed at home and raised us. I was still exposed to skipping class, drugs, and alcohol in middle and high school. I almost didn’t graduate myself, due to poor choices. This is in a school with a 92% graduation rate. I understand from intimate personal experience that the more opportunities your kids have to interact with peers making poor life choices, there is a higher chance your kid gets caught up in it despite what you do as a parent. This isn’t sheltering (I certainly wasn’t sheltered), it’s just repeat exposure to exciting but bad choices leads some kids to temptation.
I could have moved to a more expensive neighborhood in the city but the same fundamental problem exists. I don’t care about how much money people have, I care whether in aggregate, the parents in my community try to raise their kids with intention. There’s a shocking lack of that in 40% of the families in the schools in the city we moved from.
I'm not looking for an argument, I'm genuinely curious. I live in the UK but I've never visited the SF area.
I don’t know if you live in London, but I would say they compare to the Northern Line it terms of quality. But at the end of the day the real difference is about riders. I would say you do notice more issues like littering (including dangerous litter like needles) and robbery in the US train lines though.
However, just like most public train lines, you have to learn to mind your business, be aware and don’t lallygag. Also, stick to using it during the day.
Thanks for this, a new word for me.
Lallygag/lollygag: to loll about; idling lazily. There is an interesting article on it’s etymology in the NYT.
https://www.nytimes.com/2006/06/25/magazine/25wwln_safire.ht...
It's fun for the kids - why not? - but I have no fond memories. I commuted via BART every day 2006-2012 (albeit just one stop - W Oakland to Embarcadero, and back), and the stuff I witnessed on a regular basis had me thinking "I'm so glad my children aren't here to see this."
[Edit: Having parented teenagers I suspect the awfulness of the 12 to 14 age was probably more about me than anything else!]
Such is the mind of a teenager.
For work ( before covid), it wasn't interesting, definitely not tech related stuff. I'll return when I'm older and have the time to maintain a garden.
I think the bound between people in smaller villages of better too. You're limited to what you have, so you accept persons more to do they are.
In cities, you tend to like up people similar to your interests. And there's more possibility that an interest changes or you don't meet at the same event anymore.
You know what the end game of this looks like? It looks like Vail CO, Cape Cod MA, coastal Long Island and CT, the Hamptons, wealthy retirement areas of FL, etc. What industry is there? What opportunity is there? Well unless you want to sell your soul to the tourism industry or run some business that entertains richer people in exchange for their money (best leave your moral compass at the door if you want to succeed in those endeavors) or work in the supporting industries thereof there is exactly squat. Everyone who doesn't stand to inherit a business either gets out or gets addicted to something.
It's not unreasonably negative to not want that for ones' community or want to inflict that on some other community.
This doesn't happen because those same locals that are homeowners love the value of their house exploding upwards
Complete zoning and policy failure is a uniquely California problem. Nobody has a structural, and likely unconstitutional inequity in taxation that California does. Some rando Bay Area suburb being more expensive than Manhattan is not the same problem.
You seem to frame it as an exclusivity problem - they're trying to exclude people from affordable housing...
while the people who live there look at it as preserving what makes it livable
neither are right or wrong on their own, but surely build at all cost isn't a solution to mountain town charm
>while the people who live there look at it as preserving what makes it livable
And they're free to buy up all the land and choose what they want to do with it
This is objectively not true in urban areas like San Francisco or New York City
I used to commute to Manhattan a few times a month.
Even in a modern sprawl shitshow like the DC or Boston Metro area, it’s way cheaper and easier to get housing than many California locales.
End of the day, there’s just a shit ton of money combined with insane policy decisions in California. It’s a inspiring, puzzling and disturbing place, all at the same time.
It may come as a shock to Americans raised in suburbia, but there are housing types between single family units and skyscrapers that are very human-scale and attractive. Look at pretty much any mountain town in Europe.
we're trying to preserve these national treasures, but at the same time, choose winners as to who gets to build there...
I'd hate to see towers pop up in Vail and Breck to be honest.. the charm is what it is - the log cabins and resorts that disappear in the mountains.
edit: having been a ski bum in Vail, I can't say that I've visited every resort in CO. But across Vail, Breck, Keystone, A Basin, Loveland, Monarch, Cooper, Copper, Beaver Creek, Steamboat, Wolf Creek, Crested Butte, all 5 mountains of Aspen, there are no 10+ story towers. I'm trying to take back some of the pedantic tone of my original comment.
Overall point here is that Vail and other ski resort towns happily build very large buildings for vacationers and second home owners. I just don’t buy that having very large office and residential buildings would have that much greater of an environmental, or even quality of life, impact.
For the most obvious - Once you're off a municipal water supply (which of course, has to have an adequate source of water in the region), available water resources/aquifers are often very limited and minimum lot sizes have to be large because the land can't support higher density housing.
--------
If you build anything even approaching "normal" suburban SFH housing, you're just going to have all the wells you'll have to sink run dry in a few months and the properties will be uninhabitable. Seeing a 2 acre minimum lot size isn't necessarily a "keep the poor people out" thing.
To be clear, I am mostly not referring to the cities mentioned in this article, but housing development in smaller mountain towns and the rural/semi-rural areas up in the mountains.
This becomes especially clear when you realise that Los Angeles's watershed extends 1,500 miles eastward (about 2,400 km), to the Colorado River and the eastern front of the Rocky Mountains. Los Angeles has (under western-US water law) senior rights to water, over those of users far upstream of it.
Water supplies, and the rights to them, are based in large part on the economic (and hence legal and legislative/political power) of metropolitan areas. Since a large city with large rights effectively sucks dry land from 100s or 1,000s of miles away, population concentrates into a few centres, rather than being distributed across the land.
This contrast shows up most especially in the "Earthlights" images of the US mainland at night, where east of the Mississippi river settlements are dotted evenly through the landscape, but thin rapidly as one heads further west, dissolving into a few mega-concentrations: the Colorado front, Salt Lake - Provo, Albequerque, Phoenix, Las Vegas, LA-San Dieto, the Bay Area, Portland, Seattle. A few more-populated regions exist (the Sacramento-San Joaquine valley, the Willammette valley), but these are sparse compared with the Eastern US.
https://upload.wikimedia.org/wikipedia/en/4/48/Earthlights_d...
They are not obliged give any piece of their land to the people who want to live there. It's in their interest to fight to preserve local communities and local businesses, putting obstacles to the "nomads" and corporations.
mmmkay
I think if we can address what makes cities livable for EVERYONE who lives in them, then travel is for experiencing foreign ideas, concepts and cultures and not "escaping the reality of cities and using my wealth to get what i want" kinda thing
But, as you say, someone who plans to remain in their house indefinitely would probably just as soon not have their property taxes double (and may not even be able to afford them in they're retired on a fixed income).
If this is happening to your town, the town has a choice: The newcomers are coming. Are they going to live alongside the long term locals, or are they going to replace them? Are the locals going to get rich and leave, or are they going to remain poor and stay? "Get rich and stay" is not an option.
I want to say no because I feel like I can improve my QoL in ways that don't harm others, but all these examples are telling me that its really that I don't (or maybe even choose not to) see the negative consequences until its compounded by a large enough group and it ends up being another one of your examples.
The best example is land & desirable real estate. It only takes a few people with "outside" money to drive up prices in the market or to purchase land and sit on it in perpetuity, driving up prices by taking it out of the local supply.
"Aquinas believed that it was specifically immoral to raise prices because a particular buyer had an urgent need for what was being sold [...] Aquinas would therefore condemn practices such as raising the price of building supplies in the wake of a natural disaster. Increased demand caused by the destruction of existing buildings does not add to a seller's costs, so to take advantage of buyers' increased willingness to pay constituted a species of fraud in Aquinas's view."
"Aquinas believed all gains made in trade must relate to the labour exerted by the merchant, not to the need of the buyer. Hence, he condoned moderate gain as payment even for unnecessary trade, provided the price were regulated and kept within certain bounds"
So if this is true (and I'm sure certain tacit assumptions are not mentioned in this Wiki page), then it seems that crazy market price fluctuations have to do with the divorce of market value from labor which was "replaced by the microeconomic concept of supply and demand from Locke, Steuart, Ricardo, Ibn Taymiyyah, and especially Adam Smith".
Raising prices to infinity cannot induce supply of a good or service for which there is simply no capacity to provision. Nor does discrimination by price for life's essentials result in fair or equitable distribution when there is a tremendous inequality in purchasing power among the population, much if that itself the result of random chance, inheritence, or nonproductive gains.
There's another market mechanism for addressing probabalistic risks, which is to prepare in advance, to assess penalties for failure to provision, to maintain stockpiles and emergency response plans, and to move stochastic future costs to present expense through mechanisms such as risk premiums. These create present incentives for managing such risks, and are based on data and modeling which ground those costs in the likely long-run and widespread average experience. Moving expenses to the present also creates opportunity and incentive to manage, mitigate, and avoid risks.
Brief periodic outages may be acceptable.
Portions of Texas were without power for weeks. Because of predictable cold well within historical experience.
The market as designed per "prices will induce supply" failed. And no price incentive will create gigawatts of generating capacity in minutes to hours.
Just as nine women cannot make a baby in one month.
Some processes require time and/or advanced planning.
And that means that someone has to pay the costs of doing that. In a free market economy, the people who do the preparing in advance are called "speculators", and they are rewarded or penalized by standard market mechanisms according to how well they prepare. Those standard market mechanisms include being able to charge a higher price during periods of scarcity according to the natural laws of supply and demand.
The alternative is to have some central planning organization that sets requirements and doles out rewards and penalties. And that alternative has all of the same flaws as every other central planning solution--as the very example you give, ERCOT, shows.
Risk assessment (actuarial, engineering, policy, financial) is another. The insurance industry generally is a vehicle for manifesting dispersed or time-variant risks in a predictable fashion, enabling both proper accounting and (as discussed in my earlier comment) management.
Speculation alone cannot do that, though it is also a component of the risk sector.
(My somewhat unorthodox view is that the FIRE sectore, finance, insurance, and real estate, are all fundamentally about risk, in ways other economic activity is not.)
Yes, good point, this needs to be included as well as speculation.
If I understand the situation correctly, Texas regulators opted for lower electricity prices by not connecting to the national grid. In a sense, they opted to forgo paying for insurance for an event like what happened this year. Is this correct?
Also, there is no fallacy, because higher prices do not mean supply will increase. But rising prices are a signal that there is demand if more supply were to come in. Sometimes, it's not practical for that to happen, but it is, over a sufficiently large timeframe, a good signal that alerts others that it might be worth it to jump in participate in that market.
It is true, though, that this only helps if more supply can come into the market quickly enough to help. If "more supply" means "more electrical power generation plants that will take five years to build", that's not something that increased prices in the short term can fix.
Another way of dealing with cases like that, however, is innovation: finding an alternative way to meet the same need that doesn't have the same supply problem. For example, if people know that their state's power grid is unreliable, they have more of an incentive to find ways to decrease their reliance on the grid--solar panels, individual homes with their own generators, etc. But that requires transparency--people have to know, well in advance of a problem happening, that their state's power grid is unreliable, so they can take action. Which means the government has to be honest in telling them what the state of the grid is. That, I think, is where the actual root problem often lies.
So if I need my house painted, I should pay you a lot more if you do it with a toothbrush instead of normal painting equipment?
> the divorce of market value from labor
Which is simply a fact of life--often an unpleasant one, but a fact nevertheless. Market value--what someone else will trade for something you have--has nothing to do with how much labor you put in to whatever it is you have.
Replacement of whatever (necessarily small, otherwise the big city money wouldn't be a problem) industry there is/was with entertainment and tourism isn't the issue. The reality of an economy that is dependent on a specific image or perception (many would say facade) of quaintness is the problem.
You get all sorts of terrible "crab-bucket-esque" feedback loops that quash people's desire to do anything different, innovative or ambitious for fear of harming the golden goose. A large fraction of the people who actually want to do things (boring old normal business endavours that underpin a sustainable economy) leave because whatever their trade is doing it elsewhere and not putting up with all the extra overhead crap of doing it in a tourism/entertainment economy. The fact that a much larg(er than in a "normal economy) portion of the customers any given business sees will only ever transact with them ones creates a bunch of perverse incentives to do dishonest business.
It's like everything that's wrong with a college town combined with everything that's wrong with a wealthy retirement community.
Edit: strike CT from that list of examples, I was going for a "Cape cod but in the NYC economic region" and that part of CT is more like NYC's wealthy NJ suburbs.
It's somewhat received wisdom that those who can afford private schooling throughout their K-12 years leave the islands for labor opportunities (outside of tourism and real-estate management) in the lower 48 (the mainland). Meanwhile those who have to suffer through the Hawaii public education system are destined to do their part in entertaining wealthy mainlanders.
Extremely high land and input costs have long pushed many innovative/nascent businesses to the mainland. Consequently the jobs created by those firms are not available to people from Hawaii. I've heard of some promising new ventures that are seeking to change this, but I'm not holding my breath that this dynamic will change anytime soon.
Note: I apologize if I've casted shade upon anyone who's been through the Hawaii public education system and found a career that suits them.
COVID and the resulting remote work might actually be contributing to a better distribution of wealth in the country in general. It might depress salaries for industries that have concentrated in places like SFV and NYC, and thus create incentives to move out of those areas and create less drastic occupational concentrations in some industries. These changes will create conditions that create secondary benefits.
I think this is an under-appreciated fact. Remote work has the potential to be a huge equalizer, by uncoupling people's jobs from where they live.
I used to vacation there.
As one of those clueless people who can't buy marijuana in a legal state, I am equally clueless on the signs of terrible addiction if I drove through Cape Cod, MA today.
I'm not sure what makes me more sad -- the existence, or my incapability to notice the existence.
You can increase your "street-smarts" by getting out of your comfort zone, by choice or circumstances, and with life experiences. I locale and talk to the saner homeless people, especially the older who are just there by personal circumstances: I met a former teacher and elevator repairman who makes money today as a tutor; a former hippie, Navy radar and aircraft electronics technician, and Apple II rework technician; and a law school dropout, former hippie, merchant marine, and writer for the Village Voice and the NY Daily News.
Residents of Austin, TX have been complaining that the city changed or got too crowded shortly after they moved in, whether that was a year ago or decades ago. People who moved to SF in 2010 complained about the people moving there in 2015.
Same thing happens at a neighborhood or district level too. Everybody feels like they were the last person to move in while it was still good and everything after them is unwelcome.
I've been told Austin's city council mulishly refused to see the growth trend and didn't annex the hills around the city when they had the chance. Austin waterways like Bull Creek went from summertime swimming holes to unsafe to enter due to septic tank runoff and high levels of coliform bacteria because city services - sewerage in particular - weren't extended to those areas.
People who lived there really hoped the usual waxing and waning of population in cadence with student university attendance would go on forever. But according to an aunt who lived there from the 1960s until property taxes priced her out a few years ago, too many people loved it and moved back after school or just never left and it sort of snowballed from there. Her anecdotal evidence was the cashiers at her Half Price Books stores she managed often had Masters degrees but chose to work there rather than move and find a better job elsewhere.
These days people running a cash register while holding an advanced degree is more of a cliche than remarkable evidence that some place is so special you'd rather be underpaid there than be paid better somewhere else.
But yeah to hear her tell it, in her forty years there every decade that passed brought some unwelcome change to Austin.
There's no easy fix for this, especially in a place as extremely laissez-faire as Texas, where urban planning and zoning are seen as mortal sins.
Take Vancouver - even though they passed residency laws, with penalties. Average price in 1977: $90k. 2017:$1.05M. Average price dropped to $900k in Dec 2020 ... now $1.4M.
I mean is anybody from here?
Have you ever met anybody from here?
Have you ever seen so many condos in your whole damn life
That were built here in one year?
Everyone I know that was born here is dope as fuck
And everybody else sucks
I'm pretty sure the song is meant to be tongue-in-cheek, but still.- Yogi Berra
Twist of twists: Isn't this almost exactly what people have been saying about the Bay Area?
Housing can not be both affordable and a good investment.
Given second homes are an investment, by definition having one means you're helping make homes unaffordable.
This is a collective action problem. If one person decides to not move to Undiscovered Gem, Wild West then there is a large number of others that will.
Of course they pocketed a seven figure profit, because of the lakefront property, and the 100 year old wood cabin was bulldozed.
And then the transient occupants party their asses off. And then the Karens pass local ordinances. And then nobody can have any fun.
I say that as a Software Engineer who is 39 and has never been remotely close to affording even a first home.
You may say that it could have increased someone else's stock of housing. And that's true. But if I built it as a vacation home, then if it wasn't going to be used as my vacation home, I wouldn't have built it, so it wouldn't have increased anyone else's supply of housing anyway.
The same is happening even in small town now - a friend bought a place just before Covid for $480k, now it's worth $740k. This is a town of 10k people, in the middle of nowhere. Tiny lot, house is almost 100 years old.
It's incredibly narcissistic and selfish to believe that "the locals" are only there as a hindrance to you. Would you roll up to a random village in Thailand and just start changing things, and expect the people who live there to worship and serve you?
1980 census shows just over 40M in the west:
https://www2.census.gov/prod2/statcomp/documents/1981-02.pdf
page 6
2019 figures show nearly 80M in the west:
https://www.census.gov/popclock/data_tables.php?component=gr...
https://www.pewtrusts.org/en/research-and-analysis/blogs/sta...
The new construction methods, building types, and communal land management strategies that are preferred by implants have an outsized effect on the environment. Compare the new construction in Vail to the older buildings, which can still be seen in smaller towns.
I would prefer building preferences to become more harmonious with the natural environment instead of less.
Unfortunately, I'm not sure there is a politically tenable solution since everyone likes their own personal vehicles, and for that you need a driveway or garage, and for that you need space and roads, and that does not scale well with population increase.
What you call development in step 1...
> narcissist and selfish
What you call development in step 2. They're both development and urbanization.
> only there as a hindrance to you.
This seems like a projection. You don't seem to consider "them" as having any right to even exist. Indeed, in the next sentence you compare migrating within the US to migrating outside of it, making the xenophobia even more clear.
No, turning a wilderness into viable farmland is not urbanization. There's putting in the time and work to make what you want from scratch, and then there's seeing something nice that someone else made and screaming "mine!"
compare migrating within the US to migrating outside of it, making the xenophobia even more clear.
Putting a false label on something doesn't make the thing become what you label it. The US is not meant to be an open season playground for the rich and the careless.
You don't seem to consider "them" as having any right to even exist.
This sentence seems to perfectly describe the perspective of those who see a small town and want to appropriate it and make it theirs. As someone who has lived in everything from a hometown of a few thousand up to San Francisco, and a variety of suburbs and mid-tier cities in between, it's pretty tiring to see people treating the world like their own giant Disneyland, and all the people who live in it like Castmembers on display for their amusement.
Striving to minimize disruption and maximize cohesion when moving into a new town or building a new development would make for a much better world than the conquistador-style takeover that actually happens in a lot of places.
I'm 90% with you, but we need to be clear that this is not true for the way in which much of the West was settled. It was often not wilderness, but instead land watched over by Native American communities who practiced varying forms of regenerative agriculture, who had only recently been wiped out by disease or war, if they weren't still there. It was settled not by experts looking to "tame the wilderness", but largely by immigrants who were hurried, by job scarcity and discrimination, out of the East Coast and into the interior. They were extremely lucky that the land had essentially been prepared for their monocultures by generations of NA stewardship - people the government was more than happy to enable the displacement and genocide of. (And the Dust Bowl STILL happened.)
That said, after several generations of like stewardship and occupation, I favor those residents and their right to remain over new residents looking to take advantage of arbitrage opportunities. What we absolutely need is more respect for the positive aspects of long-lived communities so that we don't trample and dismantle them so casually. It may not be wholly just that the world isn't one's oyster, but as a black person who has to deal with unfortunate and continued existence of sundown towns, the reality that some places are off-limits until the locals have fixed their own issues is one that should be respected. If the lock isn't level you're just going to open the floodgates of trouble.
There is a real thing going on in the US today, a sort of inchoate rage felt at all of the poorly defined "others". My hunch is that much of it stems from the rising anxieties of climate change, economic inequality, corporate political control, and even more recently the pandemic. Everyone needs to feel they have a certain level of agency and control in the world. It's hard to sleep at night if you don't even feel certain that your bed will still be there when you wake up.
The world today often feels like we are ants surrounded by lumbering billionaire and corporate giants, hoping not to get stepped on while we watch climate change slowly dissolve the ground beneath us. People naturally cling to any remaining pieces of agency they can find, and lash out when even that tiny inch is taken from them. So when I see people screaming at a waitress for insisting they put on a mask, or sneering at someone visiting their beloved hiking trail, I wonder if it's only because there is no convenient face they can yell at for all of the larger forces that have actually marginalized them.
This is why all solutions to climate change also have to address shorter term worries if the political tide has any chance of getting buy-in from those with global AND those with local concerns. Problem is, both the voters and our political leaders have ignored BOTH kinds of problems (and at least one perspective) for far too long. Now both interests have become entrenched into dissonant encampments that, stupidly, are unwilling to talk about how we could take steps to address both purposes at the same time.
This sounds a lot like the US's recent social war over unshared political priorities, and I think it is. The 1%, the middle class, and the dispossessed all have different needs and interests that can't be met if we all feel free to overlook the perspective of those who don't share our priorities. Those experiencing local displacement due to the arrival of well-heeled haves aren't wrong. Nor will today's haves be wrong one day should they find their world turned upside down and then express their unhappiness when others show them no pity, which is likely if they live long enough.
The solution, I think, is to not dismiss dispossession. It's to acknowledge it and start an earnest discussion about what can be done about it.
I have this feeling from time to time. I find that it magically disappears when I stop consuming media. I'm not saying "it goes away when I ignore it", either. I do not get the same sense of an "angry society" when I interact with other human beings, and rarely hear anyone express any kind of urgent anxiety about climate change or economic inequality.
We face serious issues, sure, but none are the urgent societal threats they're made out to be. The real danger are the anxiety peddlers and the fear-amplifiers among us, who want to influence and then monetize your emotional state, or to transmute it into political capital.
I grew up in a tourist area, and though I'm one of the ones who left for the Big City I keep in touch. I'll give you a few examples that I think are illustrative.
Immediately after college, a buddy and I shared an apartment in a nice building on a nice street. We both made decent money working in touristy restaurants, as did the three girls our age who lived next door (and, I think, the inhabitants of the other two units in the building, though we didn't have much to do with them: they were older, and had kids, so not much in common with us at the time). During the two years that we lived there, the family home directly next door sold. It was kind of sad, because a nice older couple lived there -- we watered their plants for them once, and the wife baked us an ENORMOUS batch of cookies to say thanks -- but the husband died, and the old lady moved away to live with one of her daughters somewhere else. Anyway, the house was bought by someone as a second home / investment property; during the next year it was used for exactly three days (for a really loud and obnoxious party, but whatever). We snuck in through the backyard to use the Jacuzzi a few times, but even then I can remember thinking that this place turning into an effectively vacant property was a bad sign.
Fast forward twenty-something years, and even more of the "family" homes on that street have become second home / investment properties. The four-unit apartment that we lived in is now exclusively rented out on AirBnB, displacing the service-industry families and twenty-somethings that lived there before.
Just about everyone who actually works in that town now commutes from miles and miles away, and rush-hour traffic -- on rural roads -- is terrible.
The displacement goes much further up the income scale that you'd think, too. I've kept my dentist there, partly out of sentiment: the dentist who previously owned the practice had looked after my teeth since I was, like, eight years old; my regular hygienist has been cleaning my teeth since I was about fifteen. I cleaned their office for them when I was in high school, and they still give me an "employee discount" on fluoride treatments or whatever, so going there gives me all kinds of good small-town feelings. A decade or so ago someone I went to school with partnered with the original dentist, and then bought out the practice when the old dentist retired. We've talked a few times, and I don't think it's gone quite as well as she hoped. For one thing, she has to pay her hygienists and dental assistants a premium, to keep them willing to make the fifty+ mile commutes most of them have to make, since local housing is out of reach. She expected that, though. What I think she didn't quite expect is that she'd have so many fewer patients than the practice used to have. Partly that may be churn that comes with the old dentist retiring and someone new taking over, but also it's because the year-round population has declined, and second-homers and AirBnB-ers aren't looking for dentists in their vacation town. My friend had expected to pay off the loan for the practice and then buy a home in town before her kids got to school age. It's now 8-ish years since we talked about that, and she's still making a ~70 mile commute each way.
Build more homes? Yeah: that does need to happen (I vote the straight YIMBY ticket in the city I live in, so I totally get that argument), but ... rural small-town charm drives the tourist industry around there. Build too much and you kill the goose that lays the golden egg.
It's a really multi-layered problem, that I don't think has a simple solution. That said, there are a few relatively easy things that I think would help a great deal:
1) Raise property taxes (how much? I don't know: double, triple, quintuple, octuple? What's a bigger adjective than that? It should be by whatever multiple it takes) on any property that's not a primary residence for someone. At some level it becomes worth it to rent out your investment or AirBnB property to someone who'll actually live in it.
2) Restore the train line into town (and probably electrify it, too), then run regular commuter trains throughout the day. The right-of-way still exists, and is currently used for touristy sight-seeing and dining trains. Those can still run, but they're terribly inefficient as the only users of the rails. The goal should be to get workers cheaply to work, and tourists off the roads.
3) Charge a congestion fee to anyone who still chooses to drive. I'd make it $300 for a permit that's good for a year: that hits the tourists really hard (and helps subsidize the train), but should be relatively affordable for anyone who works or lives in town.
I dunno. I'm not really arguing with you, but I do want to make the point that the economics of tourist towns are weird, and at least some of the locals' resentment is driven less by entitlement than by economic forces, and enforced changes, that really are hurting them.
Urban poor or rural poor, techies/finance/etc displace them all the same.
The missing link here is, IMO, community involvement. Don’t become a ghost resident jacking up rents. Do join a community board, PTA, etc. Become an active stakeholder and learn about and contribute to wherever you live.
Locals, urban or rural, aren’t pissed only about rising rents or home prices, but also millennial wealth moving in and not giving a f about what’s already there.
Empathy and demonstrating community interest towards the locals goes so far but that seems so low on the problem population’s radar as an easy solution.
Unfortunately, "I was here first" sounds a lot like "fuck you, I got mine". And it's not gonna fly.
Wealthy people moving to low-cost areas (and thus raising cost of living) accelerates inequality for a few reasons.
1) Unlike you scenario, many working-class people in places like Sedona can only afford to rent their homes (25% of total, give or take in Sedona). These people incur huge monetary costs in being forced to move / switch jobs / etc.
2) Moving causes people to lose social capital. Laugh all you want, but going from a tight-knit neighborhood of peers to a new town of strangers creates costs, at least in the short term. No one to watch your kids, no one to give you a ride if your car breaks down, etc.
3) Even for those who stay, they lose power, since their new wealthy residents likely have better lobbying sway (e.g., the new bus to the airport causes service to decrease to job centers, etc.)
I don't disagree that certain locals benefit from gentrification (parent comment made the same point), but your capitalism-enabled lack of empathy for those who don't benefit is why people are warming to the ideas of socialism. So if you don't want that, I'd tread carefully & try to be a bit more empathetic.
And maybe you do all those types of things already. But the tone of your comment comes across as, “Welp, what choice do I have but to myopically try to get the most out of this hustle??”
I agree, the way forward is to revise the structure and incentives. However, I don’t want to completely absolve individuals of moral responsibility just because they’re playing within the rules of “the game”
Alternatively, those wealthy people could use their wealth to build civic infrastructure (e.g., better roads, better school, housing for working class people) to mitigate the negative externalities of their move. But generally, those wealthy movers are moving to escape urbanism and would be loathe to do those very 'urban' things.
Again, I don't disagree with you that in the current American system, 'I've got mine, f** you' is a totally acceptable way to approach moving to a new community, but to put it in words you used, "It's not going to fly" at least not in the long term.
But, I also think that it's better to be in a growing area than a static or declining area. I'll never understand anti-gentrifiers.
As an adult human being, it is your responsiblility to adapt and decide what is best for yourself and your dependents. No one owes you an unchanging landscape.
I think the main point is being forced out of your life-long home due to increased costs or taxes. Or the destruction of the local cultures/customs through change in local government policies. If you want an extreme example, you can look at the way that cult in Oregon took over a county/town in the 80s or 90s. Nothing legally wrong with it (the population segment with the highest numbers won; not talking the biological attack), but it did make the existing residents subject to their will and angry.
The whole situation (on both sides) was mostly out of a lack of acceptance for other people and their life choices. I think we see this same sort of paradigm with people wanting changes that benefit them but might be detrimental to others in their "communities" (we don't really act like neighbors anymore) without meaningful discussion.
Agreed, but it goes both ways. "We welcome your money, but please keep your opinions to yourself", isn't a great way to assimilate new migrants. Also, see top comment by Mark Watson.
I think assimilation is too unprecise of a word.
In the context of these discussions nobody ever complains about foreign immigrants with a small army of kids running around and they're (at least initially) as un-assimilated as one can be. Heck, they might not even speak the language.
Meanwhile everyone agrees that Karen the corporate lawyer who shows up and promptly gets to work building a fence, calling in noise complaints and narcing on everyone for ordinance violations and unpermitted work is in the wrong.
I'm struggling to put my finger on exactly what it is but there's this disdain and unwillingness to respect local norms that makes the latter example of a newcomer toxic and unwanted (and IMO it seems to correlate strongly with wealth of the newcomer).
If housing is actually allowed to be built, someone might be able to stay in the area in a new, nicer, place. However, in essentially 0 places in the US that are hot housing markets do they allow as much housing as is demanded. Houston might actually be the closest. Prices in Houston are way lower than many other in-demand major cities.
And thus my question/comments about controlling the demand side, as the supply side changes haven't worked well.
"Good intentions to help the old people stay in their homes but it means that the new people moving in support the people that lived there earlier."
Well, the system of funding the schools through property taxes on people without children is essentially the same - tax is used for "the collective good", where you have some people supporting others.
The problem is boomers treating property as an investment vehicle the value of which must go up up up. Introduce affordable housing to cool the market off? Not over my dead body if it means people won’t be clawing tooth and nail for properties in my neighborhood anymore.
The incentives are so backwards. I’ve got mine fuck yours. I don't see how demand side regulation addresses any of this...
I do understand that many of the incentives are backwards, so higher taxes, policies to move jobs, etc are all difficult to handle. But I also think that building more high density housing isn't really going to fix anything. In my view, many of the people in this sort of situation chose to be - they could take jobs in other cities but the group-think says they need to be in SV and working for FAANG to be successful. Not to mention that many want a single family home with amenities to come with that.
Keep in mind that the tax break can be passed on to children when the owner passes. I fail to see the collective good in that system. But at least the owners of that $3.5M home never have to leave while they pay $800/yr in property taxes and the newcomer that moved into the identical house next door pays $25k/yr.
I don't generally like the idea of taxing people on things they already have. I would rather see it on the people who are making money. If you are benefiting from the system (income) then pay part of it (tax). Under these other schemes, it could be that the system has failed you, left you behind, etc and then the tax is like the nail in the coffin. It makes the most sense to take the money from the people who are making it.
No idea where that is so can't comment on it.
However, I do know that some of these sites that report propery taxes do have incorrect information.
In my neighborhood (where I bought before it was built and have lived there ever since and know well who has lived for how long in each house) I see most houses on my street reported with their correct property tax but there are a few outliers which are completely wrong. Those show a property tax far lower than it ever was.
If someone were to take a screenshot of the property tax reported for my street, they'd think there is a 100x difference between the lowest and the highest for similar homes. But those lowest numbers are not true.
The real spread is more like 2.5x from lowest to highest. Which is not nothing, obviously, but way closer than it would seem.
It's a huge metro area with no zoning. That dissuades people from building a castle when a toxic waste dump (or refinery) could go in upwind without warning.
The city's large size and the ever-expanding radius to growing exurbs tends to dilute the value of existing homes which slows their appreciation. And the land in the region has no natural beauty. It's scrub. So creating a synthetic upscale suburb would be hard to sell economically. So neighborhood trendiness tends to arise organically, mostly from proximity to central neighborhoods (like University Village near Rice or Memorial in the museum district).
Low home prices in Houston wasn't the result of an engineered or government-driven initiative. Like all economic change in Texas, it happened on its own.
It's the same phenomena that have restrained home price inflation in Las Vegas. There's a lot of surrounding desert there and not much natural beauty to motivate gentrification in upscaleing the homes/suburb near a natural hot spot.
Low cost _desirable_ areas.
https://www.ssa.gov/policy/docs/ssb/v80n2/v80n2p1.html
https://www.investopedia.com/articles/economics/09/labor-mob...
I'm old enough that I remember my home town (which has been inundated by California retirees) as having 100% family-owned grocery stores, drug/general/hardware stores, distributorships, all of which started shifting heavily to chain and corporate dominance by sometime in the late 1970's. Since the modern concept of retiree and tourism based economies hadn't taken hold, towns of that type had to be mostly independent in terms of income for money inflow....small factories, mining, farming and ranching, etc.
I'd say that this movement of people who can afford it just another side effect of something bigger. The irony that a lifestyle of living in a nicer small town with a Powerwall and a Model 3 is both less sustainable and less diverse is not lost on me.
> I'd say that this movement of people who can afford it just another side effect of something bigger.
It sort of sounds like you answer your own question (/hypothesis): consolidation of industry. Which also seems to be a pretty big driver in wealth inequality. I've no idea what the correct response is here -- greater regulation to increase competition, so that there are more smaller players across any given industry? Who knows.
There's always the chance that the past is viewed with the optimism of youth of course. There's certainly a difference in social glue in a world where everyone is either self-employed or has a single layer of management above them. Plus, truly local companies are better local citizens (sports teams sponsors, money for charities, build decent and long-lasting buildings).
Dunno what the answer is besides accumulate a financial warchest, live where you like, watch the battle at a distance.
Regardless, the geographical narrative is not quite the same. Silver City or Prescott Valley aren't going to run out of space like an alpine creek junction or barrier island/moraine. Water is a different story.
The question is ultimately whether newcomers will participate in the town's development or in its decline, via interactions with the local community, politics, schools et cetera. Just because we built segregated communities over the last century doesn't mean we have to do it for the next one.
* influx of tourism and remote owners -> rising prices
* lack of tourism or property interest -> slow death
I am not sure what would be the right public policy to balance the two extremes.
Maybe Hawaii has the right idea with tiered property taxation - the longer you reside there, the lower your property tax becomes?
For example, Local NIMBYist restrictions, mostly those individuals that have resided there for a long time (and have the lower property tax rate you describe), have resulted in areas immediately adjacent to 40-story downtown developments being zoned exclusively for single-family homes; see Kaimuki, Upper Tantalus, Manoa, Punchbowl (to an extent), etc. Consequently, even homes built over 80 yrs ago with only ~1,300 sqft sell for about $1.1 million; https://www.zillow.com/homedetails/1001-Belser-St-Honolulu-H....
The majority of people employed in hospitality and trades that support the local tourist economy (electricians, masons, carpenters, etc.) are increasingly driven to the west side; where commutes to the city can easily be 1-2 hours normally (pre-COVID). This eventually becomes such a stressor that many of the people working these skilled trades leave for the mainland.
I was born in the US to Asian Indian parents. We lived in a small town in the southern US and dealt with a lot of racist crap. I went to college in a big city and while racism still exists the majority do not have racist views and are more accepting of people that do not look like them.
I've travelled to 47 states and I am most scared when I am in a small town in the mountain west. Burns, Oregon. Moscow, Idaho. Everyone was staring at me in the grocery store. I got some intimidating comments like "Are you new in town?" "No, just passing through." "Good."
Not welcoming in the slightest.
https://en.wikipedia.org/wiki/Kam_Wah_Chung_%26_Co._Museum
The tour guide mentioned how welcoming the people were to their Chinese immigrants. She went on to say that when the Aryan Nation tried to set up their headquarters there the people organized to tell them to go away. Unfortunately they keep trying to come back. This story is from last year.
It's great that the people of John Day are fighting against racism but I got the feeling on my trip that the Aryan Nation would be welcome an hour south in Burns.
https://www.bendbulletin.com/localstate/john-day-to-aryans-w...
If we'd been better about crack/cocaine, opioids wouldn't have hit so hard. If UI benefits weren't designed to be difficult to acquire, the ongoing problems states are having distributing them in this crisis wouldn't have happened. Right now, people living in small towns that are being effected by an influx of monied transplants have a roadmap of how this process works. If they so wish, they can disrupt it, and insist that, as new wealth pours into their area, a substantial portion of it is put towards improving the area for current residents, and towards securing their socioeconomic right to remain there. Sometimes that means telling rich people no and foregoing a short-term pretty penny, and being ready when they come after you for denying them. But that's much easier than watching your community disperse to parts unknown while yuppies live it up in your childhood home-cum-gutted minimalist smart bohemabode.
Will they heed the warning?
This is HN, the owner of the brewery probably cashed his stocks a few years earlier and saw the opportunity.
A lot of folks on this website are entrepreneurs and are completely detached from the folks that don't want an influx of money in their town.
All well and good, but the economic and environmental effects of everyone "optimizing for their own quality of life" without regard for others means everyone loses out, don't they?
I'm sorry, is that supposed to be an excuse? I mean, on the whole, some displacement of locals isn't that big a tragedy, but "it was good for me, so fuck you" isn't exactly the best moral reasoning I've ever heard.
If its ok for a young person to leave their hometown, move to a city and call it home to make a better life without thinking about the locals, then it must be ok for a person with a small family living in a city to move to a smaller town and call it home to make a better life for his/her family.
The reason that theses two scenarios are not equivalent is so obvious I'm wondering whether or not I'm misinterpreting it.
The cultures of small towns really don't have much elasticity nor are they expected to have it. People don't like change and normally no one except other small town people come in.
Cities are generally something that people rotate through in huge numbers. Cities are always changing while still keeping some on the side as a homage to their identity. For the most part though they are always in flux by nature. NYC is not the same as it was 10 years ago. ________ NY, largely the same for the past 200 years is suddenly changing radically in the tech WFA renaissance. There is no doubt in my mind the council will be hi-jacked if it hasn't already - some of those ordinances are "a little out of touch for modern living".
Anyway, before I rant too much, my point is that comparing the elasticity of a city's culture to the rigid and fragile cultures of small towns is ridiculous.
Whether you like it or not, the pandemic happened, technology has advanced, there was high demand in the cities for decades and now its subsided a little and the smaller towns have some higher demand too. Only difference the culture of the city/small town makes is how welcoming/indifferent they are or how much harder they will make it for the new comers.
It's unfortunate that you phrase that as egoistic because I think that apart from real estate price (which is highly location dependent because it depends on zoning laws) locals are better with the influx of money. In my experience in France, some rural places with low real estate tension are very happy to see urban people coming, but in other (like small coastal cities) there is a huge resentment because real estate skyrocket in a relatively short time.
This kind of self-centered thinking, at scale, is what lowers the baseline quality of life for everyone.
Edit: The Indicator recently had an interesting podcast that demonstrates this effect.[1]
https://www.npr.org/2021/03/15/977533022/please-sell-me-a-ho...
You never thought about your addiction to 2nd day shipping and international cuisine rotation via uber eats.
Quite suddenly, you lose the quietness while gaining the traffic and crime. Trails become packed and not well respected. All that remains the same is Costco except busier.
Edit: as an example, I used to live in an area that was relatively poor by US standards. There was a large cohort of retirees who would move in because if the pleasant weather, low cost of living etc. Rather than mingle with the locals, they tended to create little walled enclaves. Additionally, they gradually took over the local government (in part, because the full time political positions were unpaid, meaning only those retired or wealthy enough to not work could afford to fill them). This created an environment where business investment was often stifled because the retirees didn’t want to lose the feel of their retirement settlement by allowing more homes to be built or certain businesses to open. It was difficult to raise any taxes related to investing in schools or infrastructure because retirees tend to be more price sensitive in those areas, particularly if they don’t have children or grandchildren who will benefit. Ultimately, this made it harder for locals to find work (outside of service jobs) or to keep younger locals from fleeing for better prospects. To many locals, it was viewed as almost a hostile takeover of their town by outsiders with money. It tended to exacerbate rather than alleviate those class divisions alluded to in my original comment.
This is the crux of the matter. There is a lot of demand for less humid, mountainous regions with lots of outdoor recreation nearby. And it’s easier than ever to scope (due to internet) out the nice locations from wherever you are in the world.
So people are taking advantage (or already have) of an arbitrage opportunity to go where they want to that they previously may not have known about, or been able to go. The population of the world also exploded in the last few decades.
There's no shortage of small towns in the US. If I threw a dart at a map of the US, I'd probably hit near one. (OK, a lot of the West is federal land but there are a lot of them.) There are a lot fewer that:
- Are in a climate you prefer
- Have recreational options you like
- Are perhaps gentrified to the degree they have food/cultural options you want
- Are perhaps at least reasonably accessible to major city/airport
- Aren't too susceptible to natural disasters
- etc.
Have you considered that this is the mentality that people take issue with? It's the root of many of today's ills.
You have a responsibility to society (the same society that put you in the position you are in, able to move/work remotely and pay you these exorbitant sums) to not ruin your community. If you moving to a place would cause the community in that place to suffer, it is your responsibility to not move there.
The fact that SV/tech has forgotten any sense of personal responsibility and apparently thinks it is perfectly okay to trample on the lives of others is exactly why non-tech people have such disdain for FAANG workers.
Midway, for instance, a town on the Wasatch back situated in a location that feels similar to Switzerland, has gone from about 150 diaries to 2, as expanding housing developments buy out the high-valued farmland.
You'd think with the influx of money, and reduction in competition, it'd be easier for the remaining diaries to compete. Not so: the price of milk has remained basically unchanged since the 70s, but the cost required to run a farm has kept increasing.
So why not cash out? (A few farmers in the area have actually cashed out and moved to Idaho, and they're pretty much set for life.) Long story short, Midway is a beautiful place to live, and the remaining diaries form a pillar of the community - it's just not something the remaining diary owners, who have been farming the land for generations, want to do.
To stay in business, the remaining diaries have pivoted to artisan cheese production, with plans to produce other high-valued products, like ice-cream. Tours and locally-sourced farm stores are an additional source of income.
Of course, these are just my own two cents. I don't mean to come off overly negative about the situation. As much as I'd love to work for a FAANG, retire early, and buy a large house in an idyllic mountain town, I'd hate for that same town to loose its historical roots and what makes it that special idyllic mountain town in the first place.
Source: I'm a software engineer who lived/worked as a cheese-maker for a dairy there.
The dairy I worked at does sell high quality local raw milk; they have a pasteurizer to produce cheese, but they can't use the same one to produce pasteurized milk.
Additionally, the cows usually produce an excess volume of milk, which is sold so it doesn't go to waste: it's important to remember that even if the milk is sold for, say, $6 at Whole Foods, not all of the markup goes to the farmer.
In New England Organic Valley is as good as it gets for store milk,
Please explain what "premium" milk is. Milk is a commodity. All milk has a code on the bottle that indicates which farm produced it. If you compare codes you'll often find the cheaper store brands are the same thing as the more expensive brands.
In some places it's grass to baskets to warehousing to shipping. In others it's grass to sheep to wool to textiles to fashion. Still others it's trees to lumber to paper to stationary.
Other industries have their own moves.
In areas that can't manage this move up tend to see the local industries consolidate until some final monster exists and either also eventually fails too (to external competition) or rent seeks its way to a zombified existence.
There's other alternatives to when vertical value growth isn't possible -- like in developing countries, the businesses all coexist together, but tend to price each other into nearly unsupportable levels. Strong regulations tend to kill this alternative off leaving an up or out path one of the few viable ones available.
It's already arguably happened; fruit orchards and irrigation turns were big part of the milieu in Orem/Provo a few decades back, and they're all but absent now, and in general the Wasatch Front has taken a dramatic turn away from agriculture in the last 30 years.
It's easy to imagine the metro areas like the Bay and Los Angeles like they've always been that way, especially if you're younger than the internet. But if you look at early/mid-century maps or pictures you realize that there was still a great deal of open space and agriculture mixed in. It doesn't take a genius to realize similar changes are coming along regions like the I-15 corridor.
California problems follow California popularity.
E: forgot the link https://www.growingproduce.com/fruits/the-last-of-his-kind-f...
Using fat paychecks to lay waste to small towns is one of the few things tech yuppie and oil pipeline workers have in common.
Best (i.e. least worst) case scenario you end up as a rich people playground like Tahoe or Cape Cod where everyone without a conscience runs a business skimming easy money off the wealthy (or becomes a plumber and does it with an extra abstraction), everyone with ambition leaves and everyone else winds up with a substance abuse problem. Worst case the money leaves for good and you wind up like coal country.
I don't personally think it's immoral at all: things change, and I'll always respect the entrepreneurial spirit. But I do view the situation with some sadness, and I can understand why a long-time local might view it as wrong.
Though, really, not even that helps because towns can't actually (or really want to in general) arbitrarily prevent outsiders from moving in. So a desirable location just ends up with a different group of people with the money to purchase existing housing.
If people lived in normal houses, had normal job and lived normal lives where they didn't have to escape to feel normal, then we wouldn't seek out mountain towns as places to live, but rather places to explore.
Instead, we amass sheer amounts of wealth, property, exclusivity, we build so much of our society around celebrity and uniqueness and feeling special. We value huge houses with lots of rooms we'll probably never use and as long as "we win" - we don't care the cost.
Here in Austin - we're seeing the result of people leaving other cities. They look here and go "wow its cheap" but the people who have lived here - and lived here for EONS are going "wow, its getting expensive".
If you bought a house on fixed income and paid it off and worked a full life - we're getting to the point where your dream is no longer a dream. Sure, the house may have equity but its a tax liability - so you have to move..
Where do you move too that isn't being impacted? Where do you go to survive on fixed income and just live?
Is it NIMBY when you just want what you worked an entire life for or is it really something else?
If you're retired on a fixed income in Austin and own a house you can defer paying property taxes until you die so there's no reason this person should have to move.
Policies you're calling "NIMBY" are rarely the underlying cause. They're reactions. Some of them exacerbate certain problems, some of them attenuate others, but not the underlying cause.
That said, I can't help but wonder if it is possible to shape how people buy. For example, with the existing very limited housing stock being exacerbated with large capital chasing it, I'm inclined to think that there should be property taxes that are a function of housing one already owns in a given market and supply on the market. So... want to buy a new house and keep your old one to rent out? Want to buy a third in a market where there isn't two weeks of supply on the market? Maybe you'll pay a bit more, both on the transactions and yearly. Want to buy your twelfth or twentieth unit as part of a fund or trust in a market where there isn't a week of supply on the market? Maybe you're going to get hit hard, and you should try to find some other productive use for your capital.
Apologies if this sounds exasperated, it’s a genuine question:
How is this a California thing?
Money flows out of cities. That’s globally true. Is this not happening everywhere on the planet?
California happens to have two massive cities, so it’s a major example of the phenomenon. But what is specific about California here, other than the random fact that California’s specific top industry happens to be the global top industry at the moment? As New York was in the 1980s, Detroit in the 1950s, etc.
Two reasons:
(What used to be called) Yuppies moving out here and working remotely to 'get more in touch with nature' (read: start a blog or something about sustainable living that is really only possible if one of you has a 100k+ salary) and investors from out of the area are purchasing land as an investment. Both of these things drive the cost WAY out of the range of what is (a) reasonable, or (b) attainable.
I'm over the whole thing. In an area where the median family income is around 55k/year, anyone that makes double that as a single individual can live like a king. Consequence: none of us that live here can afford the increase in taxes, home values, or property values anymore.
It's possible he's a local. That could also mean he didn't move there with a 2x salary. So it's not really the same thing.
While there's nothing wrong with people moving for a better life, there's also nothing wrong with someone lamenting fundamental changes in their community that they see as detrimental.
Sorry, I should've been more clear. I grew up here as well. I've lived here for my entire life (outside of the 6 years I was at college/grad school, and even then I was back to work on the farm on the weekends). It's not NIMBY. I don't care who lives here. That's actually what I like the most about rural living - for the most part if you leave people alone, they'll leave you alone. What I do care about is that the people I grew up with literally cannot afford their taxes anymore. Their kids can't stay here because they can't afford to buy a house. The community is dying.
My point about my home price is that, that increase in value/cost is not realistic. It's neither realistic in actual value or in attainability should I choose to sell it. Very few locals can afford housing around us now, and they're leaving. That's actually led to an increase in young people leaving the area. New young people move in, but for every one of them, it seems like three of us have to move somewhere else!
>You should be complaining about state policy
What possible state policy could there be to help in this situation?
>not the people seeking a better life for themselves.
That's the thing. They're not (I guess by my definition). They're either using the property solely as an investment with zero intent to ever live on/use the land, or as a pad for their homestead/van life/other nature centered blog and influencing scheme. I wouldn't have a problem if these folks tried at all to integrate into the community. But they do not. For the investors - they don't even know what the property is or where it is. They just know they can pay cheap labor to put up extremely tall fences and security systems (for what reason I don't understand). The Yuppies mostly live here Monday through Thursday, to take nice shots of themselves 'working on the farm' and then spend all weekend in the closest urban area. They do not shop in our local shops. They do not work with our local businesses. They're like tourists in their own lives. It's weird to me.
"What local and state policies might be inhibiting this and harming these communities?"
Do you have any examples? It sounds to me like the policies have made it a nice place to live, enticing people from other places to move there, and that influx is causing the shortage. Should they impose some sort of moving tax or other policy to remove that demand?
In my experience, policy isn't the issue in rural areas. The people who live there and own the land don't want to sell the land to be developed on.
Also -
>What local and state policies might be inhibiting this and harming these communities?
Literally none. There are no housing policies regarding number or type of dwellings. There is no zoning, zoning restrictions, or any other type of restriction. It's very rural. Those things don't exist. There are no home inspections, there is no building code you must follow to get a mortgage approved or anything like that. In essence - if you can build it, you can live in it or rent it to someone.
I have no idea why people keep coming back to local and state policies. They don't exist.
Not meaning to pick on you, but this is almost exactly the rhetoric that got California into the situation it is in now.
* Taxes going up due to newcomers -> cap property taxes until sale/transfer
* Kids can't afford to inherit house -> make property tax assessment inheritable by children/grandchildren
* City can't fund more schools/sewers from limited property taxes -> put limits on new housing starts and encourage retail/commercial development
* Low property tax for life + high rents -> nobody ever sells a house, market goes up more
* Limited housing availability + need for people to fill those offices -> house prices really skyrocket
I just hope other places learn from California's mistake.
The main issues (in my opinion) with housing in the parts of CA that are always mentioned is just population density and desired living conditions. I don't see what the right fix is for that. If we're basically taking the policy that we'll raise taxes to make people want to live elsewhere, then why not take the policy to restrict the offices that draw them there in the first place? Spreading it out instead of concentrating it would provide relief.
Yup, California does that. That's why CA has a reputation as a high-tax state. Although total tax burden isn't that different from places like Austin, TX though (at least that's how the numbers come out when my friend or I have seriously looked into moving there).
> I don't see what the right fix is for that.
Ha. People have been shouting it from the rooftops. Build more houses! More specifically, just allow people to build more houses. Stop preventing people from building more houses.
Frankly, that's really the only solution. If you have n households in a country, you need approximately n homes to put them in. Be careful where you share this fact though, or you'll be labeled as part of the "growth at all costs" crowd.
> then why not take the policy to restrict the offices that draw them there in the first place?
Because the reality of the situation is that local governments need tax dollars to run services that taxpayers expect (roads, sewers, schools). There ain't no such thing as a free lunch. But voters hate paying higher income taxes. You've also capped property taxes on existing development. So the way local mayors and city councils fill the gap is by allowing development that requires relatively less city services: retail and commercial space.
Of course, now people need to commute to those retail and commercial developments, (because you have limited the amount of housing) so you just created a traffic problem (but, hey, term limits are a great and your successor can deal with it!).
> Spreading it out instead of concentrating it would provide relief.
Lol. Sure, but that's what this whole thread is about! People complaining when other people spread out to get relief, and how property taxes are going up and we need to Do Something to stop it god damn it!
And the cycle begins again...
Frankly, that's really the only solution. If you have n households in a country, you need approximately n homes to put them in."
The whole point I was getting at was distribution. Sure you have n households in the country, but nothing says that n/100 need to live in just one or two counties of that country. Even if you get the green light to build more, it will be very expensive to do so, and you will have population density/congestion issues.
"Sure, but that's what this whole thread is about! People complaining when other people spread out to get relief"
Not exactly. They are seeing influxes in some areas, but it's not an even distribution. They aren't really complaining about spreading out but more about the problems created when going against the established customs, or bringing the same problems with them (taxes, property values, etc), although the costs in that area will still be less than in SV.
Nobody is forcing everyone to all live in one place. Some combination of lifestyle, economic opportunities, and other stuff makes people want to do that. Locals complain that housing is expensive in SV, but housing is expensive because of a vicious cycle, promulgated by locals, that made it that way.
A different set of policies would have prevented the vicious cycle and made housing cheaper and more abundant. In this alternate universe, with smarter housing policy, more people could be living in SV with less traffic congestion for less total cost. The only downside is that locals wouldn't have been able to sell their houses for 20x what they paid.
You can either: accept that an area is desirable and make accommodations for housing the people who want to come; or accept that housing is going to be expensive. Or I guess you can just kill all the newcomers and eat them. Normally, though, we like to at least pretend that we live in a civilized society. As a positive side-effect, being known for cannibalism does stand a good chance of reducing your locale's desirability on the lifestyle front! So maybe try that one first and let us know how it goes.
In other words, you can learn from California's example or your can make the same mistakes. Your choice.
> They are seeing influxes in some areas, but it's not an even distribution.
Sure, but it is making the distribution within the US as a whole more uniform.
> They aren't really complaining about spreading out but more about the problems created when going against the established customs, or bringing the same problems with them (taxes, property values, etc)
That's my point. They are not bringing the problems. They are coming, and locals are creating the problems by following the same bad policies that failed for locals in California. Yes, that does mean some things will change. You can't stop the change, but you do get to choose its character.
I think that's highly speculative. Many people in that area want single family homes or large homes. There's only so much surface area. It's not just that they want to live there, but also expect specific attributes with their housing.
"In other words, you can learn from California's example or your can make the same mistakes. Your choice."
If the policies work in other places, how can we determine that it's the policies causing the issues? Do you have a real world example of the alternate policies that won't cause those issues?
"Sure, but it is making the distribution within the US as a whole more uniform."
Not in any meaningful way. Over 50% of the US population lives in just 58 counties. They aren't moving to many rural locations, just to suburbs or smaller cities, which helps a little, but sometimes causes the same issues in those places.
"That's my point. They are not bringing the problems. They are coming, and locals are creating the problems by following the same bad policies that failed for locals in California. Yes, that does mean some things will change. You can't stop the change, but you do get to choose its character."
They do bring some of the problems when they go against established culture and force their views on others. This is pretty common. A classic example is people buying a house near an existing highway, then complaining about road noise and advocating for million dollar sound barriers.
Again, you mention policy as the problem, yet there's no example of the alternatives. Even the high level stuff mentioned previously sounds like a zero sum game - either existing owners get screwed or the new people do. I would like to see property tax eliminated and go strictly income based.
Yes, change happens, but it doesn't mean that the existing people need to roll over and not fight for their own opinions.
But isn't it already the case? I believe that there are a bit more houses in US then there are households. So the problem is not lack of houses, it's that people don't want to live in some places where houses are abundant. They don't want to live there for the most part due to lack of good jobs. The solution then could be to even out the wage gap and job market capacity across the country.
I know that US situation is somewhat unique w.r.t. density due to suburbia and obviously this has to be addressed somehow. But it worries me a bit when people are saying "build more" as the only solution to housing prices. I live in a city which added 50% in population last 20 years, which means about 2.5 million new people. It looks like [1] and it's terrifying, the city is not suitable for living anymore, I'm now looking for somewhere to move from the place where I was born and was living for 35 years, where my friends and parent live. All this is the result of "we should build more housing". That, and corruption of course. The city which is UNESCO world heritage site is gone forever.
By the way, real estate prices still doubled last year, so even this crazy tempo doesn't help. It's akin to fighting traffic jams by building more and wider roads - it only attracts more cars.
I am aware about overly restrictive zoning rules in US and probably building more is a part of the solution, but I don't believe it's the whole solution. Be careful what you wish for.
I know of places where houses sit empty or are even demolished because they are no longer needed with the shrinking population.
>It sounds like your area had a major influx.
And that was my point - the OP I was responding to said that s/he would welcome tech refugees. I was trying to point out that it's genuinely not all roses and gold. There are specific problems with that influx of people and money.
"and in many cases use their money to legally fight with the district about funding because their kids go to private school"
I'd be interested to learn more about this. I grew up in some rural areas and went to private schools but never heard of anything happen like that.
There are others who have taken a more direct approach and sue the local districts for 'access' complaints. They claim they should be able to benefit from extracurricular activities in their district (sports, test preparation, science clubs, that sort of thing), like home-school kids can; even though their kids go to private schools. The districts don't have the money to fight lawsuits.
"They claim they should be able to benefit from extracurricular activities in their district (sports, test preparation, science clubs, that sort of thing), like home-school kids can; even though their kids go to private schools."
If they are paying the money (no vouchers), then I don't see why that's a problem.
Our private school partnered with local public schools on some sports. One local school would send us their soccer players, we would send them our shooters. Another one would send us golf students and our tech students would go to their vo-tech program. You would take drivers ed in whatever district you lived in over the summer. It worked pretty well.
This is a consequence of growing income/wealth gap, and governments having bet the farm on economic growth that is not materializing (partly assuming growth in population which is no longer there). Government has to keep devaluing dollar to keep making debt payments, and this devaluation exacerbated the income/wealth gap. The only winning move is to be pulling in more money and plowing it back into asset inflation.
This is why housing prices in the Bay are so stupid. People don’t want it to lose it’s magic and their solution is to freeze practically all building. As a result, even the people there are forced out due to growing rents, increasing housing prices force kids to leave, commercial rents replace tattoo shops with skin spas.
And you lose the magic anyways.
Though with modern shipping taking milk from the middle of nowhere makes sense.
More recently, some local farmers worked with local government and businesses to figure how to conserve farm land. New laws and capital. Pairing immigrant farmers with land. (Here's the first hit from a quick search, not authorative, just to get the gist. https://crosscut.com/focus/2020/02/how-immigrant-farmer-kent...)
These efforts to conserve -- farms, wet lands, open spaces -- make me so proud.
At the same time, I'm pro development. Done smart. Such a huge opportunity.
I'm completely on board with Matt Yglessia's One Billion Americans (1B4USA) thesis. For so many reasons. Mostly as a way to reinvest and revitalize the entirety of our country. Back to Main Street. Back to family farms. Back to localized economies.
One reason for my success in being happy here is that I accept the 1 1/2 million tourists who flood through our town every year. I view them as good for our economy and go out of my way to offer advice on the hiking trails to people who are obviously visitors, easy to do since I like talking with people. A few of my friends are miserable because of the tourists, but they are just a fact of life.
What!? Capital One has a deep learning team? As a long-time customer of theirs, I can't even begin to guess what that team might do for their set of products, except maybe to optimize their credit card offerings.
Looks like a very interesting field to work as an applied ML/DL researcher (explainability, white-box vs black-box, bias, etc)
I lived in tourist heavy cities (London, Paris, Miami, NYC) and loved chatting with them. And some of them get you to be a tourist in your own city. It took me years before I finally visited the Eiffel Tower. It was always in my periphery and I blended it into the background. Then someone personally invited me to come along.
"Beautiful, scenic place; solitude; easy access to population centers" - pick two. There's a popular Wilderness Area about a 30 minute drive from Bend, Oregon and people act all surprised that there are lots of people there. You're not going to get solitude in a place like that. You need to accept that others want to be there too, and deal with it. And maybe do some volunteering to maintain the trails / educate people about proper wilderness etiquette.
> We love visiting the islands but learned a while back that large parts of the indigenous population see the US as an occupying entity and not their country. While heavily relying on the tourist income, this creates a challenging relationship between the locals and visitors (not to mention the disrespect some tourists show to the local land and culture).
Yes, there is a contingent of the Native Hawaiian population that is making the case for sovereignty. Again, I do not have skin in the game, nor am I an expert in these matters. However, it is acknowledged by the U.S. itself that the sovereignty of the Kingdom of Hawaii was undermined through force and not by any mutual treaty or agreement; https://en.wikipedia.org/wiki/Overthrow_of_the_Hawaiian_King....
However, your statement seems to be conflating "locals" with Native Hawaiians, which is incorrect (but not uncommon among many Americans). The majority of the current local population are descendants not of Native Hawaiians but of other laborers that were brought to the Hawaiian islands by U.S. persons-owned sugar plantations during the 19th century, "Few natives were willing to work on the sugar plantations and so recruiters fanned out across Asia and Europe. As a result, between 1850 and 1900 some 200,000 contract laborers from China, Japan, the Philippines, Portugal and elsewhere came to Hawaiʻi under fixed term contracts (typically for five years). Most returned home on schedule, but large numbers stayed permanently. By 1908 about 180,000 Japanese workers had arrived. No more were allowed in, but 54,000 remained permanently." [https://en.wikipedia.org/wiki/Hawaiian_Kingdom#Economic,_soc...]. Considering that the current population of all eight populated islands is only around 1,415,872, you can do some rough math based on average population growth from those workers to get an idea of how much the influx of these laborers changed the demographics of Hawaii.
> "This issue was made very apparent during a Pearl Harbor tour when the bus driver described how many Hawaiians actually identified more closely with Japan than America during WW2 (and still do to this day)."
I will not speak for this bus driver's opinions, but I would encourage you, if you get another chance, to take a look at the memorial plaque of civilians who died during the attacks on Pearl Harbor an observe how many names were of Hawaiians (locals, not native Hawaiians) of Japanese descent; although these individuals were also Japanese-Americans, Hawaii was only a territory at this point and did not become a state until 1959.
My point here being that who the Japanese-Americans in Hawaii "actually identified more closely" with at the time of the attack on Pearl Harbor is complicated. Considering that: 1. Hawaii was not a state at that time 2. Many Japanese (and Chinese/Filipino/etc.) were residents of Hawaii prior to it becoming a U.S. territory 3. The government sanctioned xenophobia/racism at the time.
Another important data point to keep in mind on this subject was the service of the 442nd regiment during WWII itself; which to this day is the most decorated unit of its size https://en.wikipedia.org/wiki/442nd_Infantry_Regiment_(Unite.... Meanwhile while they were fighting on behalf of the U.S., many of their relatives and family in Hawaii faced outright discrimination based on their descent and appearance (not to mention any relatives they had in California who were straight up imprisoned simply because they were of Japanese descent).
If you believe that the climate crisis is a problem and a big one, then you could be for a rude awakening as most experts now consider the collapse in biodiversity to have far bigger impacts on human lives and living conditions than climate change[0].
The only reason why there are fewer headlines about that on on climate change is that the IPBES was founded decades after the IPCC.
I'm afraid that many will finally take a few steps to reduce their carbon footprint and use this to justify expanding their footprint on ecosystems ("clean" but larger houses, "organic" but wider lawn areas, "clean" but more frequent transportation that break natural habitats, etc).
[0] https://en.wikipedia.org/wiki/Global_Assessment_Report_on_Bi...
However, this looks like an area where environmentalists risk getting themselves into trouble. Global warming is a defined and solvable task, but the messaging keeps changing to something more like an open-ended commitment. That has huge risks for the public to tune it out, and perhaps further procrastinate on the carbon emissions problem. Average people do not have the emotional energy for a perpetual guilt machine.
> We must increase the density of our cities.
I kind of don't feel like we can afford to. The housing price increases since 2020 have an atrocious human cost. These rising costs of living are not sustainable. There are some good (tech) jobs that compensate sufficiently for this type of development to work... but no where near enough. On a macroeconomics sense, I'm inclined to think it just doesn't work at all.
I'm also skeptical that the arguments apply to THIS migration. People are not moving into the rain forest, and the American mountain west, in particular, is fairly arid. The wildlife density of some places is orders of magnitude greater than other places.
Preservation is a battle that you never win, you just delay. If we can't have our big houses, wide lawns, and transportation work with some ecosystems, maybe it's all doomed either way.
The costs are rising because there is demand to move to cities, but we aren't increasing density. In most cities zoning and arduous permit processes are making building downright impossible. The lack of real density is driving the cost problem
I painfully remember a moment from the 2020 election cycle where CPAC or something had someone, amid much other nonsense, framed Democratic opposition to single-family zoning as ruining our way of life. This is, of course, while 90% of zoning is single-family.
It's not just urban areas that need (at minimum) some zoning diversity. I don't know what the most cost effective density for construction is, but I know that in the US laws have prevented the market from realizing that optimum.
Maybe 6 floor buildings provide the most floor space for the construction cost. Maybe it's 4. With the cost of housing being what it is, I feel like we can't afford to build at density either lower or higher than the optimum.. at least for the median economic persona.
We need to build our cities like we did pre-wwII. We need cities like look like Tokyo, Vienna, Paris, Manhattan, etc. We need cities that are dense and walke-able. Whether that is through removing zoning and height limits and putting parking maximums, or through government building public housing. Something needs to be done, it is a threat to our existence.
We need to densify cities and towns, and replace highways full of SUVs with train lines. We need to replace coal and natural gas burning with solar, wind, hydro, and nuclear.
We could also try to make a few new cities, instead of ten thousand new suburbs
I recommend the book Order Without Design: How Markets Shape Cities or the short podcast of the same name.
I agree. And moving from California to somewhere that still builds new housing is one way to contribute to that.
If you care about ecological collapse, you should be worried about intensive agricultural practices and agriculture in general. I think one should always be wary with topics like climate change or ecology that issues may exist at many orders of magnitude and it is important to focus on the bigger issues. (Yes there are very small areas to which some species are endemic but general hand waving about density is not sufficient for them: a farm is not dense)
Sure, you miss out on the cool things the city offers; but a couple hours drive and you're in a big city. I found the need to go only about once a month; the rest of my time was just too happy in nature to feel much need for what the city offered.
If you haven't tried mountain life - and I mean mountain life, not big city near mountains - you should. Rent a condo for the summer and temporarily relocate there. Chances are, you'll decide you don't want to leave when the summer is over.
This must be why "ban cars!" is so prominent on HN. Apparently people here have a hard time imagining a location where they can provide quality-of-life improving utility.
But to my own example. I live an hour drive out from a major city so, in normal times, within fairly easy range of going in for a night of theater or whatever. But between myself and a couple of neighbors where I live, while not really rural, we're on about 100 acres between us.
Giving up cars usually means getting good public transport. That's a trade I happily made.
If you get outside the house, then you can find interesting things to do anywhere. In the city that means a different experience than in the mountains, which is different from lake country, which is different from the plains; but there is always something.
My family is squarely in this situation - bought our home a few years ago in an extremely fast - growing area, and watched prices climb to levels that we didn’t believe at first. Imagine purchasing a home in 2019 for $500k and selling it today for $1.2M. That’s the reality in some of these cities.
People don't learn.
-- "When Money Dies"
I can't help but think that it is unsustainable though. Supporting a large, rural population is less efficient than urbs or even suburbs.
Global warming, increasing global competition... I can't help but think the people fleeing the cities will be forced back by incentives and economics in a decade.
Whenever I see statement like this, it makes me wonder if you know where your food comes from. Because for the most part, the rural populations are supporting the cities. If the supply chains in this country were to fail, it is not the rural communities who would be scrounging for food and water. We'd be just fine.
[0] https://phys.org/news/2014-01-carbon-footprint-reveal-urban-...
Upstate exists because New York exists. New York doesn't need the people upstate to survive. "Oh yeah but upstate is the source of drinking water for New York," someone told me proudly. As if the humans upstate had any contribution to the water cycle. If anything, the people upstate are polluting New York's water supply.
To add insult to injury, all these upstate politicians get to decide how much of the taxes collected in New York and surrounding areas are spent in New York and surrounding areas. Everything from CUNY to the MTA.
The idea that the city banks are going to come operate (or, in fact, even own) the rural farmland is BS.
If the pandemic hasn't demonstrated to you how fragile the global supply chain is, I'm not sure what to tell you. People have been unsupported by cities for a lot longer than 5000 years.
Mostly from machines and chemical inputs made by people who live in cities, used by people who can barely make ends meet in rural areas.
Without the machines and chemical inputs, roughly half of the world's population would starve in a few months. They significantly increase yields, and reduce required labour, at the cost of... Problems that future people will have to deal with.
The specific thing city people want is the same thing that all people want. Cheap food. There is zero reason to turn this into a culture war, when it's basic economics. Most people can't afford paying $7 for a gallon of milk, or $30 got a chicken.
If we tried to grow crops in the mainstream agricultural style, but just subtracted machines and pesticides, maybe half the world's population would starve. If the places people lived were integrated with diversified, guilded orchard silvopasture, there would be a surplus of food without machines or pesticides, those people would just have to go pick it themselves.
People obviously don't just want cheap food, given the success of Whole Foods.
The culture war comes in when people act like there's only one way of farming, and one way of integrating farming and the rest of society. Y'all are firing the first shots, don't be surprised when people shoot back.
It doesn't scale, though, and you're going to get bread riots if you tried to.
> If the places people lived were integrated with diversified, guilded orchard silvopasture, there would be a surplus of food without machines or pesticides, those people would just have to go pick it themselves.
Nobody has the time and energy to go do that and pay their bills. Farm work is really friggin' hard.
People "pick" their stuff at the grocery store. If you have a few acres of diversified permaculture within a mile of your house, it's not that different to walk a trail through a food forest and forage for everything you need. I guarantee it'd be cheaper and higher quality than the grocery store too. Animal products would cost more, but they're artificially cheap in a very unsustainable way now, so that's fine IMO.
Permaculture does a great job of reducing the labor involved in farming. Harvest is still a lot of work because of the sheer quantity of it you have to do if you're taking things to market, but if people are coming to you and harvesting themselves for a discount on food, I think that makes it workable for everyone.
Whole Foods is only able to exist in a tiny portion of markets consisting of the top quintiles of income and wealth. A simple search on Maps shows it’s not available for 80%+ of people in a city.
And even then, it had to sell to Amazon because it wasn’t doing so hot. Most Americans can’t afford anything but cheap, or one level up from cheap food.
It’s not like every farmer is happy living in a tent alone, traveling offroad only to deliver their crops and buy seeds in the city. They like some form of community.
It may be “inefficient” but if you want to be efficient, everyone will starve.
The US Department of Agriculture estimates that 10.9% of the population is employed in agriculture, food and related industries. More than half (6.4% of pop.) of those are employed in food service (i.e., waitstaff at restaurants). Only 1.3% of the population are actually employed on farms.
https://www.ers.usda.gov/data-products/ag-and-food-statistic...
To avoid arguing semantics, supporting a large population in low-density is less efficient than in high-density.
Yet while there is climate change we're seeing urban sprawl of low-density communities continue.
Meanwhile, they're pushing out the original farmers due to price increases, more than anything, the food argument doesn't hold up.
By the way, plenty of suburbia is just as bad or much worse than similarly low-density rural areas. Living spaces should aspire to be walkable, that requires some level of density.
Looking back, personally I don’t regret my choice. The direction remote work is taking us in is one where there is more pressure coming from high earners in what used to be low cost markets.
Right now, this is painful if you live in one of these places. What could have been the first homes for a lot of folks living in these areas are second/weekend homes of folks who live in major cities within driving distance. It pains me to say this, but I think putting the time into a high-earning career up front has left me in a better position to live the life I want to live in one of those towns vs. my friends who have been there all along and are starting to struggle.
On the flip side, a shift toward remote work will hopefully open the playing field somewhat for them to find their way into higher earning roles. The unfortunate side effect is that there’s more pressure to embrace the change and get into the rat race for the highest possible income you can find.
I can't say for sure whether this boom has been good or bad on the whole, but I can say there are lots of people like myself who are excluded and are left wondering where we went wrong or what we could have done differently.
It's a particular kind of boom. A lot of out-of-state money and migrants have poured in to buy houses in places with fewer COVID restrictions and lower prices.
That is fundamentally changing the character and politics of those cities.
People are buying houses after nothing more than a Zoom tour. The car dealerships have run out of four-wheel drives (even though the winter was dry). Traffic is up.
A couple of those states have turned more blue, and a couple have turned more red. It might all be a symptom of the Big Sort.
Construction materials have increased in price by several times, and building improbably continues, especially in places like Bozeman (mentioned in the piece).
In some Mountain states, a lot of people never took masks seriously. You could say that people are moving down the COVID policy gradient.
EDIT: I was born in a small western town and find myself missing certain aspects living in a larger city working in Tech.
There was a lovely older couple who were running the tourism center and provided a bunch of great information. The person in front of me repeatedly interrupted this nice old woman and talked over her, after she got the info she needed she got into a 4 runner with California plates.
The surrounding OHV and hiking trails are phenomenal but the town is going to be very boring once the locals are forced out.
What kinds of experiments? Depending on that answer you may want to investigate States, Counties, and Cities by their regulatory regimes vis a vis what you want to do. Make a short list of likely places and go visit them. Get a feel for these places. Does the altitude suit you? Humidity or lack thereof cause you any issues? What is the fire danger, or risk of other natural disasters? Are there sufficient ways close by to supply your lifestyle? What are the school choices if you have kids? Are there enough pursuits in the area to sufficiently entertain you? Can you adequately practice your religion in these places or withstand those that do? Are there good places to make friends? Finally, how easy will it be to recover from a mistake moving there? Answer these kinds of questions and you’ll know better what you’re getting into and you’ll know whether you really want what you think you want and you’ll know where to go.
I think a good bet is to find an heirloom house and property and bid on it.
What most find is ideally and if you can afford it is two homes. A secluded home and a city home (or beach, etc... whatever you like)
I agree with your general advice. Also just think about what you're looking for. E.g. there are tradeoffs between more resort-y areas and places more off the beaten track.
Gets crowded on weekends and holidays. There's definitely some antagonism towards the "flatlanders" - e.g. the people who don't live in the mountains, haha.
I think with things like starlink and solar/batteries this will only continue to more remote areas. Before water/server were the well covered utilities. Now with internet/power we can cost effectively move further afield while staying connected and sacrificing less modern convenience better than ever.
Houses in this neighborhood are now selling within 24 hours at typically 5-15% over asking, which is not typical at all for Cincinnati. This area isn't as depressed as some areas of the so-called "rust belt" but it hasn't been a "hot" real estate market for some time. The demand is being driven largely by people moving here from much higher priced areas of the country.
Lately investors have started entering the market here, plopping down cash for houses sight unseen at 10% over asking in "up and coming" neighborhoods. That's something this city has almost never seen except for maybe around downtown and the university.
It's good for local homeowners to a point, but people are already talking about how this could ruin neighborhoods and drive up rents.
My realtor joked with us that "we don't count" as carpetbaggers because we grew up here.
If you have kids stay close to a larger city. Your kids will have more opportunity.
For anyone else looking. We took a two month road trip during the worst time of year (climate wise) and took a road trip to see where liked it best. We chose North Carolina and love it.
Back when I was a childless introvert, living on a 15 acre ranch by myself would have been living hell, and would no doubt have done terrible things to my mental health. I might not like being social, but I still went out to concerts, movies, restaurants and similar (often by myself) and doing so was always mentally invigorating. Plus going to the pub with that one friend I did have was very necessary for my mental health. Being an introvert doesn't mean you don't want to be around civilization. As a childless introvert having a small apartment in the middle of town where I could walk everywhere was the obvious no brainier, and worth every penny.
As someone who lived in Manhattan, I used to believe this.
Then the pandemic happened, and I watched how our so-called "civilization" handled it. I could not really imagine a worse outcome: it was mismanaged and terrible from the highest levels of authority down to the most insignificant end-user.
Now this introvert very much wants the option of being not around civilization at times. I don't trust civilization to remain civilized, in even a minor pinch.
I will likely build a house 100km from anything, and spend 25-50% of each year there.
This makes me roll me eyes a bit. The Economist is generally pretty YIMBY, but this sounds like the "character of the neighborhood" nonsense I hear from local wealthy people who are doing their damndest to pull up the drawbridge behind them.
* There is so much space in the American west.
* Quality of life depends on a lot of things. The 'quiet mountain town' where I live in Oregon has benefited greatly from having some more things going on locally. There's even a fantastic Italian restaurant run by a guy from Tuscany. You wouldn't get that in a true small town of which there are still so very many all over the west. For every 'hot' market like Bend, there are various depressed former resource towns like Burns or Lakeview.
* Proximity to wilderness basically means being near public lands like BLM and Forest Service. Those are generally pretty hard boundaries: just because your city is growing doesn't mean the Forest Service will cede land to it.
That said, there are tons of small towns that are not growing - indeed, they're kind of stagnant, population-wise . Lakeview, Oregon had its heyday in the 1960ies in terms of the population.
When the pandemic is over and WFH policies are tightened, I'm sure some people will migrate back after they discover how horrid it is to commute for hours a day. But I sense that WFH is the new normal and so this transformation is likely long term.
Is that true, or overblown?
All the OutdoorsBro(tm) that I know are moving to Denver, so idk if I would even like it.
The traffic jams on weekends are real, but avoidable if you know when and where to go. There are plenty of things to do that will avoid the crowds people complain about. It's not that hard, but the popular stuff everyone knows about are always packed.
Cultural homogenization is really dependent on who you talk to and who they hang out with. I have tons of friends that complain about this here, but from what I observe they don't try to hang out with people that are much different than them. There is diversity here (could be improved for sure), but you need to make an effort to seek it out.
I think from a surface level glance those things are true, but if you want to get more out of what the area has to offer and avoid the pitfalls, it's not that hard although takes some effort.
A lot of people are looking to move into mountain communities that are largely water stressed already. Adding more people, with less water, and higher fire danger and it’s going to get ugly.
Case in point I live near a river that eventually drains to the Mississippi.
https://fred.stlouisfed.org/series/SFXRSA#0
I'm unconvinced this spells the beginning of a long term trend re: remote work. It's more a sign house prices are going up everywhere. Remote workforce will grow from this no doubt but the smart money remains on work looking very similar to how it looked pre pandemic IMO.
Between the framing studs would be insulation, and on the inside of that goes drywall.
Has nothing to do with rural towns. There are plenty of rural towns in the Midwest that are still cheap, I grew up there.
I find it very educational to read what people have to say about living in the various parts of the country.
My wife, son and I lived in the Midwest where I worked in tech from the mid 1990s until 2009, when we moved to the SF Bay Area. While we could technically afford to buy a small place in California at the time, the difficulty we experienced selling our home and land in Missouri soured us on buying, so we rented in Mountain View until 2020.
In our early 50s, and rent for a descent 1000 ft^2 two bedroom apartment approaching $4800/month, and the pandemic raging, I transitioned to a full time remote position and we bought an enormous property about 10 miles outside of Olympia, Washington. Our total cost of living, including food, rent/mortgage, utilities went down by not quite 50%, but I was still getting paid "Silicon Valley" rates and benefits, and I still am....and I will likely continue to be.
My wife's various businesses have long been fully online, and her income has gone up tremendously during the pandemic, with no sign of that changing.
One thing that facilitated this move for us was our son attending High School from home via https://cava.k12.com/ in California, and we were able to transition to the Washington State version of k12.com for his senior year, which is finishing up shortly.
To the article at hand: while we don't have any solid data, anecdotally we understand that there's a skyrocketing housing crunch in the making in and around https://en.wikipedia.org/wiki/Olympia,_Washington and our property has appreciated about 17% in less than a year.
More to the point, from the perspective of our read on NextDoor (which so far has been a LOT more healthy than the NextDoor in and around Mountain View), https://old.reddit.com/r/olympia (and /r/seattle) and various personal conversations, there is a huge influx of 'money', and the long-time folks are pretty unhappy about it. My wife and I are pretty chill and we get along with people, so it hasn't been directed at us.
Yes, we definitely feel bad that we've done a small part to negatively impact the life of our new neighbors. Our plan is that this is our 'forever home'...I don't know if that 'offsets' things or not, but we're certainly not looking for a quick flip.
I don't know where/how this ends, but in my high level estimation, there's far more possibility of building new housing in Olympia + Colorado Springs + many other places than there is in just the SF Bay Area.
However, that local, who isn’t making California money, that is working a local job and making local money and is hoping to move up in housing for their family is priced out because housing pricing has doubled or even tripled.
People that wanted to retire to rural or remote areas where pricing is traditionally cheaper are now fucked over.
Sure, the owner didn’t need to price their home higher. Sure, whatever the market will bear. It still doesn’t mean it sucks less for the couple with a baby on the way hoping to buy a home in their home town that is now double and triple the cost.
No, I haven’t been personally affected by this. I’m just worried what is happening and will happen around the US in the coming years.
2. This is how gentrification works. Many of these folks are coming because they’ve been priced out of wherever they’re coming from.
3. Housing can’t be both a right and subject to free-ish market mechanisms.
One is technically wrong. It can't be both a good investment and remain affordable. It can be both affordable and a good investment in the present, with prices rising over time generating a good return and making it increasingly unaffordable.
Except apparently in tiny towns where we’re now ruining it for the locals.
Yep. If you want to blame someone, blame local governments in California and their chronic refusal to build adequate housing, citing dubious progressive buzzwords to push policies whose outcomes always curiously seem to further enrich property owners and screw over everyone else.
Seriously, without Singapore-style public housing, you just aren’t going to solve this problem in any reasonable way. But that would ruin housing as a good investment outside of a small niche market at the super high end.
It certainly can be.
However, the combination of 0% Fed Interest Rate and low property tax rates kills the "affordable" side of that equation.
The 0% Fed Interest Rate means people can go way higher in mortgaging the hell out of themselves than if the rate was say 5%.
As for the property tax, raising the property tax rate limits the price of a home because even if someone could swing the down payment on a McMansion, the annual property tax payment would start biting into how good an investment it is. So, the developers would start building houses that assess at where the majority of buyers sit.
Of course, the same people who complain about getting gentrified also generally oppose raising property taxes even slightly. Oh well.
3. Sure it can. You can have a market governed by supply and demand. Lots of demand? Price increases. Price increases? Incentivises supply. More supply? That's great, it addresses the scarcity and prices will follow-suit.
Poor people priced out who have a right to housing? A rental cap is an intervention that directly impedes the free movement of the price up to a hard cap.
But a housing subsidy for low-income individuals, i.e. more money to spend on housing, does not change the fact that the market is still governed by supply and demand.
Housing prices with rent subsidies can still go up and down depending on demand. But the government taxes the rich, and redistributes money to the poor, allowing their purchasing power in the housing marketplace to be more equal than solely based on their own income.
This, combined with proper zoning laws (set more at a federal level to override local NIMBY powers) and limited red-tape, to allow construction levels to respond to increased prices and actually generate adequate supply, is a market-based system where the poor are getting their right to housing.
What's the alternative?
Besides, there's more housing than ever. The right to housing cannot be spoken about without also saying 'in particular places'. The average household size (people per house) has dropped every decade for a century, and the average home size has increased every decade for a century. The square foot per person has been growing and growing. Whatever housing crisis people talk about, they tend to completely ignore location. Yet you'll find plenty of people who speak about a right to affordable housing in NY or SV when it's a place where incomes are at the top 0.1% worldwide and there's easily 10x as many people (in the country, and 1000x worldwide) who want to live in such cities at an affordable price than there are homes to live. It's impossible to provide a right to housing to all in those locations with any policy anyone on any part of the political spectrum can think of.
Wouldn't be remotely a problem if they just built housing to meet the demand. Go take a look at property values in Bozeman and then look at the empty land all around it. There's plenty of room, but the zoning laws destroy supply and enrich current home owners.
Also, it's the US mountain west. There is a lot of space there to build more houses.
Housing isn't a zero sum game unless you have poor zoning.
It is easy to say the problem is that we just aren’t building enough in those places, but it really isn’t that simple.
Let's check on how San Francisco is doing: 18,790.74 people per square mile.
Okay, no worries, Bozeman can keep its current foot print and 8X its population comfortably.
My mom and step dad built a house in Helena, which isn’t that far away. Pretty expensive place to live, infrastructure wasn’t great, housing was expensive (this is back in the 90s). The house turned out to be economically non viable for reasons unrelated to demand.
I'm sure it would be trivial to counter the point around water. Just consider any of the metropolises in the Middle East.
In terms of infrastructure, that can be built as well. See literally any other city larger than Bozeman.
“ It has been estimated that between 1975 and 2000 a total of more than US$100bn has been invested in water supply and sanitation, and that a further US$130bn will be needed between 2002 and 2022, corresponding to US$6.5 billion per year or more than US$200 per capita and year.[2] This level of investment in water per capita is among the highest in the world, higher than in the US, the UK or Germany, due to the high cost of desalination and the need to transport water over long distances. It corresponds to about 1.5% of GDP.”
https://en.m.wikipedia.org/wiki/Water_supply_and_sanitation_...
You’re throwing your hands up exasperated at the costs of building water infra when the peak is somewhere around 1.5% of GDP but then you have housing costs that are rising dramatically faster than wages and everyone’s like “whelp, nothing to done here.”
Urban planning is useful for a reason. Building housing is far from effective on its own, and not all areas can support the same densities (in the Middle East, they have to be really careful about where they grow). And even if you “win”, the result is a more livable city that attracts even more people, leading to price increases nonetheless.
That doesn't sound so bad. What's the alternative?
Obviously government is required for the planning and zoning reform aspects but the idea that any solution to housing price issues isn't building more is non-sensical. Singapore's solution is just building HBDs!
Tokyo housing is expensive for its size. You can just get small apartments there that are affordable. Also, Japanese housing depreciates, which takes away a lot of speculative pressure.
You: "You don’t, you can’t build your way out of these kinds of problems"
Me: "Yes, you can. Tokyo and Houston are perfect counterexamples."
You: Does a combination of moving the goal posts on Houston to being about Houston's lack of livability and not prices as well as decides that somehow Tokyo's housing prices declining is a counterargument to building being a solution to high prices?
Tokyo is quite affordable in terms of rent and prices haven't been increasing anywhere as dramatically in other similarly classed world cities. If this source is to be believed, it's 48% cheaper than SF: https://www.dbresearch.com/PROD/RPS_EN-PROD/PROD000000000049...
I'll again point here, but there are plenty of other resources that will Tokyo's success at combating high housing prices: https://marketurbanismreport.com/blog/tokyos-affordable-hous...
Or here: https://www.ft.com/content/023562e2-54a6-11e6-befd-2fc0c26b3...
If there is fixed and relatively small unmet demand, you can build to accommodate it.
Otherwise, you can just make it less desirable. If you mistake a case where the earlier condition doesn’t apply for one where it does and start chasing it with runaway density, you’ll probably achieve this accidentally, so, one way or another, “build more” works
Your statement boils down to "supply can never outstrip demand" which is trivially falsifiable in its own right. No matter how livable a city becomes, at some point, you can have built more than the housing demanded by people. There are a finite number of humans and the proportion of them who both CAN and WANT to live in these cities is almost certainly manageable.
But don't take my word for it, look at the actuality of Tokyo (which for multiple reasons has a far more difficult challenge than Bozeman or any of these other mountain towns): https://marketurbanismreport.com/blog/tokyos-affordable-hous...
Many of these desirable mountain locations like Vail are in mountain valleys where there is a limited amount of land to build on.
The problem is strictly the water rights being a political labyrinth (water rights don’t easily transfer from farm to residential).
Where am I allowed to live everyone? Lol
Tax housing income as normal income. Remove 1031b exchange. Remove depreciation of homes. Tax all housing sale gains.
Housing would then be affordable.
And by proportional I mean like income tax, so the first $1m is 0%, $1m - $3m is 1%, etc
Not sure the best numbers but should be something were most people dont pay, even can have an investment property to cover need for a rental market, but if you have significant holdings it kicks in, and people with residential empires should basically be untenable unless it is short term holding to renovate etc.
Also could apply top rates to residential property with corporate or foreign ownership so residential is for people to live in.
With a lot of problems of this nature, especially social issues, the key is to “zoom out” to get a clearer, more sane picture of what’s going on. Humans were made to migrate, and these “locals” can adjust.
135,000 more people left California than moved in last year. Even if they overwhelmingly moved to only ten other states, that’s just 13,500 extra ex-Californians in each one of those unlucky states. And not all of them are going to be wealthy, surely some non-negligible portion will be less well off. Maybe they’ll be wealthier on average, but it’s not 100% tech millionaires.
Somehow this is supposed to be responsible for skyrocketing prices in Austin, Portland, Atlanta, Denver, Boulder, Seattle, Aspen, Jackson, Tahoe, and hundreds of other cities, towns, and locales across the country. All the while the price of housing in California suburbs is going up too!
At the same time, interest rates are plummeting. For a given house sale price, this can dramatically affect the affordability of monthly payments: refinancing last year from 4.325% to 3.375% cut my payment by a full 20%. Sub-3% loans aren’t too hard to find right now. In a competitive market like housing, this has the extremely well-known effect of causing sticker prices to rise. Put another way, if you can afford $1,500/mo payments and the rate drops such that you would only need to pay $1,150/mo, the market will quickly react to increase prices to keep the overall monthly payment the same.
This isn’t a novel mechanism. It’s part of the reason housing has been such a wildly successful Investment vehicle over the last few decades. Interest rates fell, prices went up accordingly.
Are emigrating Californians responsible for some of these price increases? Sure, both generally and probably in some specific markets, I totally buy it. But everywhere simultaneously? I’m skeptical it’s responsible for as much of an effect size as people appear to believe.
If two rich Californians move out of the state and one poor starry-eyed college graduate moves in, the view that only one net-person moved out is too simplified.
Never underestimate the power of a good narrative.
https://vtdigger.org/2021/04/19/home-sales-to-out-of-state-b...
>The tax department logged 3,795 sales to out-of-state buyers in 2020, compared to 2,750 in 2019. That represents about 27 percent of all residential sales in 2020, according to Deputy Tax Commissioner Rebecca Sameroff.
>The value of that real estate increased even more: $1.43 billion in residential real estate was sold to out-of-staters in 2020, a 79% increase over the $799 million sold the year before.
135,000 Californians could consume the real estate market of Vermont many times over.
There are more than Californians and I think this story applies to all “rich states moving to lower tax states.”
There were many states [0] with net migration loss and while California alone isn’t enough, you have to lump in NY, IL, NJ, CT, MA, MD you get significant numbers and that’s year after year.
In your story you missed to mention the local homeowner who unexpectedly got a California price for her old house, the proceeds from which she can now use to send her grandchild to college and pay her medical bills.
Dude, there are a plethora of non-descript towns in America. My friend got married in one. They don't have cell reception. They talk on walkie talkies.
If you take the California money for your house, you can just retire there by buying and building enough homes for you and your friends.
This is always some imaginary pipe dream from the coastal elites. Life in the middle isn't idyllic. You guys always put up some imaginary plinth and then build this massive statue representing The Country Life So Beautiful and put a plaque on it and worship it like it was handed down by Moses.
But seriously. Life suuuuuucks there. These people will make it better.
You’re only looking at the displaced resident being priced out. But there are many people who desperately want to move to coastal California and currently can’t because of housing costs. The migration is balanced by someone new being “priced in” to San Francisco or Los Angeles. Maybe even someone who wants to get out of their small Rocky Mountain town.
Every IPO and stock vest causes home prices to go higher in the Bay Area, there’s been a lot lately.
While the cost of home ownership may be up (most likely as you identify due to the wealth effect of equity grants), the actual cost to live in coastal California is sharply down.
I can recommend not moving anywhere near Greely CO where cattle are slaughtered by the thousands. It smells very bad. Also, driving in Wyoming there is effectively no speed limit between the highway patrol is very sparse.. and there isn't much there.
50%+ WfH OTG homesteads in the middle of nowhere but with access to fresh water and sunlight are a very good idea long-term, especially for raising a family, growing crops, mental health, well-being, and peace-of-mind.
Big cities are (and were pre-pandemic) only useful for conducting high-level economic activity due to the density of connectedness and potential for rapid wealth accumulation, but in general, they often tend to be terrible places overall for the most part, and people should escape to more tranquil and mentally-healthy places.
YMMV.
yeah, seriously "citation needed" here. Cities offer a LOT of things not usually found in rural areas. Try explaining to my trans sister about how cities are bad, and that she should live in a rural area, for example.
> Cities offer ...
Yes, I don't deny this.
Sister: Anecdotal example, sorry
None of this negates my impression and opinion which is a valid expression but not a universal fact up for debate. It is not a universal fact anyone must agree with or hold. In fact, it's arrogant to criticize or tell someone what their opinions and experiences should be.
So were you not telling people what their experiences should be when you said "Big cities...tend to be terrible places overall...and people should escape to more tranquil and mentally-healthy places"?
Unless your trans sister has special medical needs only available in big cities, there is nothing special here. There are plenty of liberal small communities and there would be even more as people leave cities.
Doesn’t seem to be stopping anyone from moving here though.
See living/working in WA and shopping in OR for tax advantages as a similar analogy.
I'm from Missouri and I can tell you that most of the small towns are not idyllic rural paradises. They are farming towns which now have no purpose, no young people, and serious drug and suicide problems. These are not all friendly places.
They would all KILL to have an influx of young energetic people move in. They want to see the town survive.
We had two KKK rallies through the town square in my town in the 80's. We have so many right wing racists in positions of power now that I have no interest in living in a small town again.