Jon Caldara had an interesting article a few years back when he declared it was “time to rename our state East California.” Is such a bold statement warranted? This year TSI, formerly known as Transit Systems, Inc., listed Colorado at the number 7 state in the US that Californians moved to 2017 with 27,014 moving from California to Colorado, up 0.4% from 2016. And is it any wonder that Californians are flocking to our state? Colorado is 12% above the national average overall cost of living compared to 17% for California. If we compare the cost of living with the east and west coast cities, Colorado is 30% below major coastal cities. This influx of Californians is one of the driving forces of the metro Denver housing bubble. It is clear that Californians find the lifestyles here in Colorado great and are able to get more bang for their buck and are moving into Colorado in droves. Is there a way to stop the Californian invasion of Colorado?
The average house value in California is $605,000, compared $535,483 with the metro Denver area single-family home value. There is an important distinction to make because the total state home value for California is greater than our state’s most prominent metro homes market value. Just think how much more home you could buy if a Californian sold their home in San Francisco or Los Angles and relocated to Denver? According to Zillow, the median home value in San Francisco is $1,355,200 and $696,900 in Los Angles. With the massive influx of Californians driving up our home prices for Coloradoans, what options are there? Here are our top 3 actions that could stop the Californian invasion.
Top 3 Actions to Stop the Californian Invasion Into Colorado
#3 Placing Angry Professionally Printed Card On California Plated Cars
In late September, former Boise State University kicker Taylor Rausa found a professionally printed card on his car, which read:
GO BACK TO CALIFORNIA
WE DON’T WANT YOU HERE
“One bit of advice Rausa got during the online fracas was that he should change those California plates — and fast.” We doubt that placing professionally printed cards on cars would do much to stop the invasion, but it may cause a chuckle or two. We rank this as number 3 on our list to stop Califonianas from pushing up Colorado’s home price.
#2 Building A Wall
Our esteemed president has suggested building a wall around Colorado, but would this be a realist solution to stop migration from California into Colorado? The border wall between the US and Mexico has been suggested as costing $24.4 million per mile and if we assume we would need to build a wall along Colorado’s eastern border, which is 380 miles long, it would cost $9.272 billion. The ideas on this blog are for helping Coloradoans deal with the high cost of living here and this would proposal would push up the cost of living because it would involve raising taxes to pay for the wall. Unless we made California pay for the wall. We ranking this as number 2 as it would push up the cost of living here Colorado due to higher taxes, but would be more effective than placing cards on car windshields. Also, Californians could just fly over the wall and still get here.
#1 Higher Property Taxes For Newcomers
A former mayoral candidate in Boise, Idaho Wayne Richey proposed a solution to an influx of Californians to his state during his campaign for mayor. His plan was to tax newcomers more than longtime residents. Boise, Idaho is dealing with similar issues that metro Denver is facing as Californians are fleeing the Golden State in droves thanks to untenable costs of living which include exorbitant taxes levied by inept bureaucrats. The annual fires, poo-covered streets, and devastating earthquakes are icing on the cake. He dubbed his plan as Proposition Zero One Two Three. It would result in sixty-year residents paying no property taxes – while new residents would instead shoulder the burden.
A similar property tax could be adapted in Colorado that would finance both state and local government through property taxes on newcomers, whose influx tends to cause the most governmental outlays by stressing the existing infrastructure.
This was a fun thought exercise on what Colorado could do to address the recent strains on the state due to the rapid growth over the last ten years. There isn’t a need to stop the Californian invasion. We don’t endorse putting place cards on windshields saying go back to California or building a wall around our eastern border. However, the idea to tax recent newcomers at higher rates than long-time residents has our backing and we would support a local politician who proposed this tax. Let us know your thoughts in the comments.
Dr. Denver Housing Bubble continues to make waves. Our blog was named to the most comprehensive list of Top 10 Housing Bubble Blogs on the internet and we are honored to be part of this!