This has been a phenomenon for some time that a lot of real estate agents are jumping on, especially in Arizona and Nevada. So basically the California effect is a migrational pattern of Californians who leave the state for financial and personal reasons and settle into states like Nevada, Arizona and Texas.
NRI Investment in India 8 Points for NRI Investment in Real Estate
The California Effect and the opportunities it provides
1. The California Effect and the opportunities it provides
This has been a phenomenon for some time that a lot of real estate agents are jumping
on, especially in Arizona and Nevada. So basically the California effect is a migrational
pattern of Californians who leave the state for financial and personal reasons and settle
into states like Nevada, Arizona and Texas.
The fear of a lot of these residents stems from the fact that there are now so many
Californians that the rents and prices are going up. I’ve read comments by a lot of
different people who talk about how rents in Northern Arizona have went up by 300%
because of the influx of Californians.
It is kind of a very interesting pattern of people and has shown that where Californians
settle they usually turn the area similar into California subconsciously and without even
thinking.
Take the phenomenon in Austin, Texas for example, many many Californians went to
that one specific area and a lot of large California companies followed suit and
eventually turned that area into the next Los Angeles and San Francisco.
It’s interesting because there is a phenomenon about California where it is so big to the
point that it has influence throughout the rest of the country. And it shows that it has
more influence in neighboring states than Texas does in neighboring states there.
Although Idaho was hit much more by this phenomenon, Utah remains relatively
untouched. Probably due to Utah having a very strong Mormon Identity and culture.
So who’s moving into California? Mostly the very wealthy and the very poor. California
has a huge homeless problem where a lot of homeless from all over the country tend to
migrate to California for safe havens but also very wealthy people migrate as well.
2. Which is why an apartment in the worst part of town is now costing 2000$ a month.
Where does this come into effect and to understand this phenomenon? This is actually
not a planned phenomena, this is more of a cause and effect for the difficulties of not
being able to live in California.
Whether you believe Newsom is a good governor or not, there will always be a problem
of migration going out of the state. It is starting to become a state where the incredibly
wealthy are taking up the land and the resources, thus making it harder to work on.
Eventually you will begin to see a lot of the effects of Californians moving to these areas
in droves and you will begin to see things become different.
Although we talk about the bad things, this can actually be a very good thing for an
entrepreneur in the area who wishes to take his trade or craft to the next level and be
able to work with Californians. If you’re an electrician, this is great for business! If
you’re an auto technician, more cars with more miles on them!
Manufacturing coming to your area may also expand as you will begin to see more
people come to your area and how exactly to cater to them. I myself will never leave
California except for college but I have seen a lot of the world myself and it’s quite
unique in a way.
If you play with stocks this might be perfect as well as you will be able to work in more
markets. A new share market is starting to expand as well, the first app I use, Landa,
focuses entirely on buying shares of houses and being able to see the dividends come in.
I love the app actually and have been buying a lot more shares in Georgia. Georgia has
an increase meanwhile shares for houses in Alabama don’t seem to be going up at all.
New York is very matured now but will see more growth later on.
So there is a lot of opportunity here and over time you will see it grow. It becomes more
apparent as things change and you will see more waves from other areas come in.
3. In conclusion, you need to have a positive mindset to any new wave and see it as an
opportunity to expand yourself. It’s not the survival of the fittest but the ones who are
most adaptive to change who win.