"Option A is a beautiful home in California near good schools and job opportunities. But it goes for nearly a million dollars - the median California home sells for US$906,500 - and you'd be paying a mortgage that's risen 82% since January 2020. Option B is a similar home in Texas, where the median home costs less than half as much: just $353,700. The catch? Option B sits in an area with significant hurricane and flood risk."
"Take California, which lost 239,575 residents in 2024 - the largest out-migration of any state. Where are these displaced residents going? Many are heading to southern and western states like Florida and Texas. Texas, which is the top destination for former California residents, saw a net gain of 85,267 people in 2024, much of it from domestic migration. These newcomers are drawn primarily by more affordable housing markets."
"The annual household income needed to qualify for a mortgage on a mid-tier California home was about $237,000 in June 2025, a recent analysis found - over twice the state's median household income. Over 21 million renter households nationwide spent more than 30% of their income on housing costs in 2023, according to the U.S. Census Bureau. For them and others struggling to get by, the financial math is simple, even if the risk calculation isn't."
Median California home prices reached US$906,500 while mortgages have risen 82% since January 2020, creating unaffordable buying costs. Median Texas homes cost US$353,700 but many affordable locations carry significant hurricane and flood risk. California experienced a net loss of 239,575 residents in 2024, while Texas gained 85,267 people largely through domestic migration. The annual income required to qualify for a mid-tier California mortgage was about $237,000 in June 2025, more than twice the state's median household income. Over 21 million renter households spent over 30% of income on housing in 2023. Income levels increasingly determine exposure to climate hazards.
Read at Fortune
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