California's boom in high-wage jobs, such as those in the tech sector, has shoved housing prices skyward and threatens to squeeze low- and middle-income wage earners out of the Golden State, a report released Wednesday warned.
Those disturbing findings were contained in new research compiled by Beacon Economics and commissioned by Next 10, a San Francisco-based think tank.
California is adding jobs and wages are going up, but a new economic review warns a housing shortage could crimp the state's economic growth.
Three new reports from Beacon Economics looked at housing, wages and migration. The studies found California continues to create jobs and attract people from other states. However, the reports also find there is not enough new housing in the pipeline.
A growing population is increasing competition for housing, which is driving up prices. That situation isn't getting any better.
So, as it turns out, back in June 2014, California’s labor market finally recovered all of the jobs lost during the Great Recession, according to a report by Next 10.
Next 10, if you've never heard of them, employs research from leading experts on state issues and creates a portfolio of educational materials. They just got around to finalizing the crunching of the data, along with Beacon Economics, which is one of California’s leading economic research and consulting firms.
In spite of the fact that California boasts some of the highest wages in the nation as well as one of the fastest rates of job growth, high housing costs are driving many people out of the state.
The Los Angeles Daily News reported Thursday that a study by Beacon Economics, a Los Angeles research and consulting firm, said 625,000 more U.S. residents left California between 2007 and 2014 than moved into the state. Many former residents ended up in Texas, Oregon, Nevada, Arizona and Washington.