California city's housing market "exploding"

Published in House and Home on Saturday, July 5th 2025 at 10:29 GMT by Newsweek
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Inventory in the San Francisco metro area has jumped over the last year, as buyers are priced out of the market.

The article from Newsweek, titled "California City's Housing Market Is Exploding," delves into the rapid growth and transformation of the housing market in California City, a small desert community located in Kern County, California. The piece, written by Aila Slisco, was published on March 1, 2023, and provides a comprehensive look at the factors driving this unexpected boom, the implications for residents, and the broader context of housing markets in the United States.

California City, often referred to as "Cal City," was initially planned in the 1950s as a master-planned community with the ambition of becoming a major urban center. However, it never fully realized its grand vision and remained a relatively small and quiet town for decades. The city's population is around 15,000, and it is situated about 100 miles north of Los Angeles. Despite its modest size and remote location, California City has recently experienced a surge in housing demand, which has led to skyrocketing property values and a bustling real estate market.

The article highlights several key factors contributing to this sudden growth. One significant driver is the affordability of housing in California City compared to other parts of California, particularly the more expensive coastal regions like Los Angeles and San Francisco. As housing prices in these urban centers continue to rise, many people are looking for more affordable alternatives. California City, with its lower cost of living and relatively inexpensive homes, has become an attractive option for those priced out of the more expensive markets.

Another factor fueling the housing boom is the rise of remote work. The COVID-19 pandemic accelerated the shift towards remote work, allowing people to live further away from their workplaces. This has enabled individuals and families to move to more affordable and spacious areas like California City without sacrificing their jobs. The article notes that many new residents are coming from the Bay Area and Southern California, seeking a better quality of life and more affordable housing.

The influx of new residents has had a profound impact on the local housing market. According to the article, home prices in California City have risen dramatically over the past few years. Data from Zillow, cited in the piece, shows that the median home value in California City increased by over 50% between 2020 and 2022. This rapid appreciation has made it challenging for long-time residents to afford to stay in their homes, as property taxes and the overall cost of living have also risen.

The article also discusses the challenges and opportunities that come with such rapid growth. On one hand, the booming housing market has brought economic benefits to the area. New businesses are opening to cater to the growing population, and local employment opportunities are increasing. The city's infrastructure is also being improved to accommodate the influx of new residents, with new roads, schools, and public services being developed.

However, the rapid growth has also led to concerns about the sustainability of the housing market and the impact on the community. The article mentions that some residents worry about the loss of the small-town feel that originally attracted them to California City. There are also concerns about the strain on local resources, such as water and electricity, as the population continues to grow.

The piece also touches on the broader context of housing markets in the United States. The article notes that California City's housing boom is part of a larger trend of people moving from expensive urban areas to more affordable regions. This trend has been observed in other parts of the country, such as the Sun Belt states, where cities like Phoenix and Austin have also seen significant population growth and rising housing prices.

The article also discusses the role of investors in the California City housing market. As property values have risen, more investors have been drawn to the area, buying up homes to rent out or flip for a profit. This has further driven up prices and made it more difficult for local residents to purchase homes. The article cites data from Redfin, which shows that investor purchases accounted for a significant portion of home sales in California City in recent years.

The impact of the housing boom on local residents is a central theme of the article. The piece includes interviews with several residents, both new and long-time, to provide a personal perspective on the changes happening in California City. One resident, who moved to the area from Los Angeles, expressed excitement about the new opportunities and the sense of community in California City. Another long-time resident, however, expressed concern about being priced out of their home and the changing character of the town.

The article also explores the potential long-term implications of the housing boom. It notes that while the current growth is driven by factors like affordability and remote work, there are questions about whether this trend will continue. If remote work becomes less common or if the economy shifts, the demand for housing in California City could decrease, potentially leading to a market correction.

In conclusion, the article provides a detailed and nuanced look at the housing market in California City, a small desert community experiencing rapid growth and transformation. The piece highlights the factors driving the boom, such as affordability and remote work, and discusses the economic benefits and challenges that come with such rapid growth. It also provides personal perspectives from residents and explores the broader context of housing markets in the United States. The article serves as a case study of the complex dynamics at play in the housing market and the impact of these changes on local communities.

Read the Full Newsweek Article at:
[ https://www.newsweek.com/california-city-housing-market-exploding-2083284 ]

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California city's housing market "exploding"