Why is California so much more expensive than Texas?

[Cubus]

California and Texas are two most populous states in USA. They are also third and second biggest states, when it comes to territory (behind Alaska), they have quite similar climate and environment (hot, dry, with deserts, on the South, both have access to the ocean). They also have quite similar population spread - a few big cities and rural areas - different than f. e. state of New York, that has only one big city and all of the rest is rural areas - so comparing New York with California or Texas would not be fully accurate. Yet - California is way more expensive than Texas.

According to Massachusetts Institute of Technology (data from 2021):

- affording all basic needs, which are defined by MIT as 1. food 2. clothes 3. housing 4. medical care 5. transport costs and 6. "other" is on average $83,917 in California vs $59,652 of average in Texas
- average yearly costs of eating is $3,792 in California vs $3,177 average in Texas
- things such as entertainment, dining out and pet care are on average 5,4% more expensive in California

- In Texas, the median home price is $195,000, which is lower than the national average. In California, the median home price explodes to $552,800!

- California, on the other hand, wins when it comes to college costs. Average cost of private university is $32,964 in California vs $36,880 in Texas. $4,000 a difference.

Sources:
https://homeia.com/city-living-guide/the-cost-of-living-in-california-vs-texas/

https://www.investopedia.com/ask/answers/100214/what-cost-living-difference-between-texas-and-california.asp

[MTC29]

High taxes and fees drive up the cost of living in CA, but also play a big part in the sky-high housing prices in CA. Developer fees are outrageously high, and those costs are passed along in the housing prices.

CA may seem massive, but the choicest areas have filled out years ago. Along the coast, as well as inland from the coast, southern California is essentially a continuous city from the Mexican border north to the Santa Barbara Countyline. What undeveloped land remains is reserved for National Forests of Military bases. Camp Pendleton, a US Marine Corps base which essentially straddles Orand and San Diego counties, contains land which might be worth a trillion USD if it could be developed.

Texas also has beaches, but if you've experienced the Gulf Coast humidity in the summer, you probably won't come back for more.

[Anonymous]

Booming economy, silicon valley, hollywood attracts a lot of people. The more people drive up demand, the more costs are going to increase due to a lower supply. It's the same reason NYC is one of the most expensive cities in the world. A lot of people want to live there. The ideal places to live in those areas have been taken and there's still a mad rush to fit in any space they can. You can find apartments in NYC that cost like 1.2k a month and they have communal bathrooms. It's wild. Basically, you can set your own price when people are so desperate to do anything to live in a specific place.

[Cubus]

Then why big companies such as Tesla leaving Silicon Valley?

[Opinion Owner]

even without them it's still one of the biggest tech hubs in the world

[Lucy68]

My guess is probably because California has a lot of famous people and celebrities living there and if you have the money they'll afford the bread that cost $5.89

[Cubus]

Again - look at the median of house cost.

[Lucy68]

The south housing market is cheaper

[Cubus]

What are the reasons it is cheaper?

[Lucy68]

Two words: Civil War

[Cubus]

California is also in the south.

[Lucy68]

I thought California was out west you know west coast

[Cubus]

South-west.

[Lucy68]

Ah yes

[Flower7]

California is more glamourous. And a lot of people want to live there because of celebrities.

[OlderAndWiser]

Supply and demand in action. There are lots of people who think California is halfway to heaven! If I had to leave Florida, I'd prefer Texas!

[Cubus]

Is Florida expensive, in comparision to other states?

It is the third most populous state, so I wonder how it looks. Is it closer to California, New York or even Illinois or is it closer to Texas?

[OlderAndWiser]

I think we are much closer to Texas. We have major population centers in Miami/Ft. Lauderdale/West Palm Beach, Orlando, Tampa/St. Petersburg, and Jacksonville. My hometown is Jacksonville and most people don't realize that the metropolitan area has a population of more than one million.

[Cubus]

Jacksonville looks like a cool city. If I ever moved to USA that would be one of the first cities I would consider.

[OlderAndWiser]

Plenty of beach access and one of the great rivers of the world. The Saint Johns River is almost 3 miles (5 km) wide close to where I live.

[IAteTwoFullHams]

Because California's population is overwhelmingly concentrated in ultra-dense cities, while Texas is dotted with small towns that have plenty of room to grow.

This means everything when it comes to housing prices.

[Cubus]

And Texas is not concentrated in dense cities? Austin, Dallas, Houston, San Antonio, Fort Worth.

[IAteTwoFullHams]

Texas contains dense cities, but also vast tracts of rural land, which brings all those averages down.

[Cubus]

California also contains a lot of rural lands.

[IAteTwoFullHams]

9% of California's population is rural, while about 16% of Texas's population is. So it's almost twice as many people living outside big cities.

And in the north, a lot of California's big cities are completely out of space - there simply isn't anywhere for San Francisco to grow.

[Cubus]

"And in the north, a lot of California's big cities are completely out of space - there simply isn't anywhere for San Francisco to grow."

The same can be said about El Paso in Texas

[AviatorTom]

California wants to be its own country, establishing its own rules. Texas WAS an independent country once, and decided it was a bad idea, so it became a state.

[exitseven]

California has a much bigger government and hands out welfare benefits to illegal aliens. As a result they all flock to California and sign up for EBT cards and other freebies. Taxpayers pick up the tab.

[NathanDavis]

because of taxes...

and also, because California is pretentious AF... and it costs money to be that pretentious

[Staximus]

Houses in Texas are a lot more expensive than that in 2022. The average house price in Austin right now is $650k

[Cubus]

The one I showed is median, not average

[Staximus]

Texas is so big with so many small towns that the median is not an accurate representation of a realistic housing market, because most people are moving to the metropolitan and surrounding areas of the big cities like Houston, Dallas, San Antonio, Austin, etc.

[Cubus]

California also has a lot of rural areas, where little people live.

[convo_king89]

Inflation, high regulation all adds up.

[Anonymous]

Leftist policies mostly