
For most of the last forty years, Orange County house prices relative to income or rent has been higher than most of the rest of the nation. Price inflation in OC is caused the growth restrictions due to the passage of CEQA in 1970, superior income and job growth, and old-fashioned kool aid intoxication. Ever since the 1970s, house prices relative to rent have been so high that it's rare for owners to be cashflow positive. In other words, absent home price appreciation, it generally makes more sense to rent. However, Orange County has been anything but absent home price appreciation. In fact, house prices in many areas are ten times or more than they were forty years ago. This…[READ MORE]