The latest word from the California Building Industry Association is that home builders will plan to build about 30-40% fewer homes than initially expected in Riverside County.

Their explanation is that the high price of gasoline is keeping home buyers away from the IE. People don't want to move here and then spend so much money commuting to SD and OC...

Nevin said that the rise in gas prices makes homes in the two counties less attractive to buyers who had previously been willing to trade off a long work commute for less expensive housing. He noted that many homeowners commute 1 1/2 to two hours daily, and in some households, there are two working members who both make long commutes.

Read the full article on The Californian...
http://www.nctimes.com/..../19_50_195_31_07.txt

I tend to disagree with this. I'm no socio-economist, but if people don't move to Riverside county for cheaper homes and cheaper rent, then what are they going to do instead? Stay in San Diego and Orange County and pay double the amount for housing?

The reasons why people are buying fewer homes could be anyone's guess. I don't think it's because of higher gas prices. I moved here from Orange County and continued to commute there. But I had the expectation of finding work here, which I eventually did, starting my own business. I don't think fuel expense is going to stop anyone from realizing cheaper real estate, and a better quality of living. It has to be something else.

Meanwhile, people from all over the United States and Mexico keep pouring into California in search of jobs. These people have to have rooves over their heads. Something's gonna give.

Labels: Real-Estate