The Californization of the Texas Housing Market (WSJ)

[Johnny2X2X]

7. Multi faceted problem

People leaving CA are selling their homes and getting millions for them. So they go to TX with cash in hand and the ability to pay whatever it takes to win the bidding war. If you net $1M on the sale of your CA home, you're going to get much more home in TX for $600K, so you have no problem paying $700K to outbid anyone.

Air BnB is totally different now, corporations took over. Their business model means they can pay way over asking for site unseen homes in desirable locations.

Builders play a part too. They just don't build "starter" homes anymore because the profit is in the big mcMansions. I'd love to see more new housing developments where the focus is going to be on 1200 to 1500 square foot homes.