Placentia, a city in Orange County, California, along with other working-class towns in the state, is grappling with soaring home prices, pushing the median value of homes beyond $1 million. According to reports, cities like Orange, Tustin, Bonita, Cerritos, and San Gabriel are amongst those experiencing a significant rise in housing costs. The surge in property values is most pronounced in Orange County, San Diego County, and Los Angeles County.
In recent years, the real estate market in Tustin has seen substantial growth, with property values in areas like Bonita and Tustin skyrocketing by nearly 12% in just one year. The shortage of undeveloped land in the area has led to an increase in demand for older homes, prompting many residents to renovate existing properties, driving up prices in the process.
With over 210 cities in California boasting a median home value surpassing $1 million, the state dominates the list of “million-dollar cities” in the United States. In fact, California accounts for close to 40% of the nation’s total million-dollar cities. The escalating housing prices in California have raised concerns about affordability and access to housing for residents, particularly in regions like Southern California, where supply struggles to meet demand.
The steady increase in home values has put homeowners like Tor Black and his wife Iris in a favorable position, as their property in Tustin has surged in value from $800,000 to $1.3 million in just a few years. This trend is not unique to Tustin, as many families across California have witnessed a significant appreciation in their home values, leading to debates about the sustainability of such growth in the long term. Experts suggest that the limited availability of land for new construction, coupled with intergenerational property transfers, is contributing to the steady rise in housing prices.
Despite the ongoing housing crisis, California continues to attract residents seeking a better quality of life, prompting a reassessment of the traditional American dream of homeownership. As housing costs in California remain among the highest in the country, many are opting to relocate to more affordable states like Florida, where red states are becoming increasingly popular destinations for those looking to escape the financial burdens of living in million-dollar cities.