There are a wide variety of factors that impact the real estate market, especially in a state the size of California. What matters most in northern California may not be much of a factor in southern California, for example. However, the public policy set by state leaders can have a significant impact on a state’s real estate market.
A recent report analyzed the differences between two of the largest states in the country: California and Texas. Overall, the results of the analysis seem to indicate that the differences between the public policies of these two states sets their respective real estate markets at polar opposites of the spectrum of “healthy and thriving” to “not great and getting worse.” Our readers can likely guess that it was California that ended up on the worse side of this analysis.
The report noted that, although California has been showing strong job growth in recent years, the real estate market is a significant concern for the state’s economy. Factors such as environmental regulations and land use restrictions in California are impacting the overall health of the state’s real estate market. Not only that, but housing is getting significantly more expensive – to the point that middle- and lower-income earners have been all but priced out of living in certain areas.
Anyone in California who is interested in jumping into the real estate market – residential or commercial – will need to know how various laws in the state might impact their proposed transaction. Getting the right information about legal options and the state’s public policy may help buyers and sellers to understand when is the right time to make a move in the real estate market.