[quote=AN]gn, I know about the tax situation in TX, but how can TX’s big city have cheaper home prices than small cities in CA, like Fresno. Fresno is still a good 2-2.5 hrs away from San Jose. Would be a killer commute. It’s almost like working in SD and live in Palmsprings. The amount of people who can put up w/ 2-2.5hr one way commute is extremely small. So I don’t buy that reasoning as to what’s keeping Fresno’s prices up.[/quote]
AN,
Here’s how I see it. Let’s say the cost of an entry level SFH in a certain city is $400k. If the cost of a similar SFH in another city (2 hours driving away) is $100k, then it’s considered a great bargain. In this case, there are always people who:
– Want one spouse to be able to stay home with the kids, so they decide to sell their $400k house & move 2 hours away.
– Are retirees who don’t have to commute to work & sell their house & move 2 hours away so they can get the low cost of living & still be close to their friends & families.
So, Fresno & Bakersfield, because they are “not too far” from high-priced metro areas get some influx of money that spill over from the high-price areas. That’s why it’s higher than other places like Dallas or Houston.
I’m not saying that this is the only factor. It’s one of the factors.
