High housing costs may be causing trouble for the Southern California housing market.
Despite the fact that the state has some of the highest wages and job growth, many potential buyers are choosing to go out-of-state and foreign buyers are even pulling back.
A stronger U.S. dollar could be to blame for the easing of many foreign buyers, including the Chinese, which surpassed Canadians as top foreign buyers last year. This may have to do less with the cost of housing and more with the U.S.’s image of political and economic security.
What do you think of the changing housing market? Do rising costs make you consider moving out of state?
Raphael Bostic, Judith and John Bedrosian Chair in Governance and the Public Enterprise at USC’s Price School of Public Policy