Advertisement

SKIP ADVERTISEMENT
You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.

The Californians Are Coming. So Is Their Housing Crisis.

Is it possible to import growth without also importing housing problems? “I can’t point to a city that has done it right.”

Construction of homes in Eagle, Idaho, in 2018. The Boise area has become one of the fastest-growing areas in the country.Credit...Ruth Fremson/The New York Times

Statistically speaking, Idaho is one of America’s greatest economic success stories. The state has low unemployment and high income growth. It has expanded education spending while managing to shore up budget reserves. Brad Little, the state’s Republican governor, has attributed this run of prosperity to the mix of low taxes and minimal regulation that conservatives call “the business climate.”

But there is another factor at play: Californians, fleeing high home prices, are moving to Idaho in droves. For the past several years, Idaho has been one of the fastest-growing states, with the largest share of new residents coming from California. This fact can be illustrated with census data, moving vans — or resentment.

Home prices rose 20 percent in 2020, according to Zillow, and in Boise, “Go Back to California” graffiti has been sprayed along the highways. The last election cycle was a referendum on growth and housing, and included a fringe mayoral candidate who campaigned on a promise to keep Californians out. The dichotomy between growth and its discontents has fused the city’s politics and collective consciousness with a question that city leaders around the country were asking even before the pandemic and remote work trends accelerated relocation: Is it possible to import California’s growth without also importing its housing problems?

“I can’t point to a city that has done it right,” said Lauren McLean, Boise’s Democratic mayor.

That’s because as bad as California’s affordable housing problem is, it isn’t really a California problem. It is a national one. From rising homelessness to anti-development sentiment to frustration among middle-class workers who’ve been locked out of the housing market, the same set of housing issues has bubbled up in cities across the country. They’ve already visited Boise, Nashville, Denver and Austin, Texas, and many other high-growth cities. And they will become even more widespread as remote workers move around.

Housing costs are relative, of course, so anyone leaving Los Angeles or San Francisco will find almost any other city to have a bountiful selection of homes that seem unbelievably large and cheap. But for those tethered to the local economy, the influx of wealthier outsiders pushes housing costs further out of reach.

According to a recent study by Redfin, the national real estate brokerage, the budget for out-of-town home buyers moving to Boise is 50 percent higher than locals’ — $738,000 versus $494,000. In Nashville, out-of-towners also have a budget that is 50 percent higher than locals. In Austin it’s 32 percent, Denver 26 percent and Phoenix 23 percent.


Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.


Thank you for your patience while we verify access.

Already a subscriber? Log in.

Want all of The Times? Subscribe.

Advertisement

SKIP ADVERTISEMENT