Houston, we have a problem

In this case, the “we” is the state of California, where fewer housing starts have been reported since 2011 than in the single city of Houston, Texas. Mark Perry of the American Enterprise Institute offers details.

During the period from January 2011 to March 2014, there have been slightly more single-family housing starts in Houston (95,037) than in California for the entire state (94,993). In this single chart, we can understand the dynamism of the booming, expanding Texas economy and housing market compared to the stagnation of the California economy and the housing market there for new construction. …

… The religion of “open space” in California probably helps explain why there’s more new construction of single-family homes in Houston than in the entire state of California. And those “open space”-driven housing restrictions in California help explain the high cost of housing there relative to Houston. During the month of March, the median sales price of homes sold in California at $376,000 was almost exactly double the median sales price of homes sold in Houston at $189,000. The median sales price in the SF Bay area in March was $579,000, more than three times the median sales price in Houston. And those huge differences in housing prices probably help explain why firms like Toyota and Occidental Petroleum are moving from California to Texas, joining other firms including Industrial Brush, General Motors, DHF Technical Products and Sony Pictures that have relocated operations this year to Utah, Michigan, New Mexico and British Columbia respectively.

texascalif1-600x430It seems Governor Moonbeam and his colleagues have some work to do.

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