- Median current value: $614,540
- Median current value per square foot: $365
- Median untapped potential value: $161,390
- Median untapped value per square foot: $109
The real estate market on the West Coast has generally been high for a number of reasons. High-paying jobs in the tech industry have encouraged people to relocate there, and a shortage in housing has driven up prices. Population-dense areas such as San Diego, Los Angeles, San Francisco, and Seattle are already highly developed, making building on new land remarkably expensive. In California, Proposition 13 and bureaucratic zoning laws also disincentivize new housing development.
In recent years, mountain-area states have seen a boom as West Coasters move further inland to find more affordable real estate. Utah is one example of this boom, as it boasts strong job growth and low state and local taxes. Meanwhile, in housing-crunched California, new legislation may loosen some of the historic building restrictions, such as allowing some environmental reviews to be bypassed when building up to 10 homes in certain housing zones. And similar to a law passed in Oregon in 2019, California's Senate Bill 9 permits property owners to build additional housing units on land zoned for single-family homes, which would allow homeowners to collect rent and increase their property value.
This story originally appeared on Realm and was produced and distributed in partnership with Stacker Studio.