I’ve heard SLC is overpriced.. but there are still other areas on the 7th largest contintent that are priced low.
If you do a wage comparison and cost of living in Austin, TX vs. San Diego, CA – I BET(haven’t done the comparison)there is still a huge gap.. and Austin isn’t really a low priced area of Texas.
I think we’ll see lots of these areas boom while the big bubble high priced areas like San Diego are crashing.. just imagine what a huge exodous of people from Southern California to Texas and Utah will be like? I don’t think many markets are flexible enough to take huge influxes without a little chaos..
The people have to live somewhere argument still works, people just have to live where it’s affordable.. and even if a place in Texas should be $150k but it’s $250k, that’s still very affordable and even has some room to grow for someone coming from CA that just bailed out on their $700k loan..
The biggest question mark in my opinion is, where are they going to get that $250k, what does their credit look like at that point, and what are interest rates at? Most will probably end up renting these cheap homes… which makes any healing of the San Diego inventory look even more bleak!
