Southern California’s “last affordable” region has seen massive population growth as coastal renters flock to cheap homes.
New dates revealed that California’s Inland Empire region is booming, with Riverside and San Bernardino counties collectively adding more than 22,000 people last year.
This trend is partly driven by coastal renters moving inland to purchase more affordable housing, as reported by SFGate.
Last week, the California Department of Treasury released its annual report on population and housing estimates.
Menifee, located in Riverside County, emerged as one of the state’s largest population growth centers, adding more than 2,000 residents in the past year.
New data has shown that California’s Inland Empire region is booming, with Riverside and San Bernardino counties adding more than 22,000 people combined last year
This population growth has attracted significant interest from real estate investors, causing fluctuations in average house prices across the region
Victorville in San Bernardino County also experienced significant growth, bringing its population to nearly 140,000, surpassing cities such as Santa Clara and Berkeley and approaching the size of Pasadena and Orange.
The report does not specify the origins of these new residents or whether they moved from other parts of California or out of state.
For buyers, the median sales price still fell 2.5 percent year over year in February to $535,000 in the Inland Empire, compared to Los Angeles, where the median home price stood at $1.2 million.
Nevertheless, these provinces now have fourteen cities with more than 100,000 inhabitants.
This population growth has attracted significant interest from real estate investors, causing fluctuations in average home prices across the region.
The report also highlights growth in other parts of the state. In Imperial County, on the southern border between San Diego and Arizona, several cities ranked in the top 20 for percentage population growth.
The San Joaquin Valley also saw significant increases, with Bakersfield emerging as a key area for new housing.
California grew by about 67,000 people last year, and the crowds are big on Hollywood Boulevard in Los Angeles
Located in Riverside County, Menifee has emerged as one of the state’s largest population growth centers, adding more than 2,000 residents in the past year (Photo: Aerial view of the Downtown Riverside skyline)
This trend is partly caused by renters on the coast moving inland to buy cheaper homes
Victorville in San Bernardino County also experienced significant growth, bringing its population to nearly 140,000, surpassing cities such as Santa Clara and Berkeley and approaching the size of Pasadena and Orange. (Image: San Bernardino is a riverside town)
Joshua Tree National Park is located in the Inland Empire, which consists of San Bernardino and Riverside counties in Southern California
The area has attracted residents from Orange County, Los Angeles and the Bay Area.
Statewide, California’s population grew by 67,000, challenging the persistent narrative of a “California exodus.”
The Treasury Department estimate was unveiled earlier this month and shows the state’s first gain since 2019.
California has been dogged by rampant homelessness, drug addiction and eye-watering costs of living in recent years, prompting residents to flock to Arizona, Texas and beyond.
But it now appears that the Golden State may be bouncing back.
This ends the population decline that has dogged Governor Gavin Newsom – widely seen as a future Democratic presidential candidate – for much of his term.
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The small increase represents only a growth rate of 0.17 percent.
But officials say it signals a return to steady population growth after years of disruption from Covid-19.
Newsom took a victory lap after the news was announced.
“People from all over the country and all over the world come to the Golden State to pursue the California Dream,” he said.
On the West Coast, they can experience “the success of the fifth largest economy in the world,” he added.
The population growth is attributed to more people immigrating to California from abroad.
Fewer people are also dying from the coronavirus pandemic, and fewer people are leaving California to live more cheaply elsewhere.
This population growth has attracted significant interest from real estate investors, causing fluctuations in average home prices across the region. Housing construction has increased in California, but costs remain well above the national average
California grew by about 67,000 residents last year, the first gain since 2019
More people means more homeless: California has the worst unhoused rate of any U.S. state
Legal immigration to California from other countries fell during the pandemic due to stricter rules under then-President Donald Trump.
In 2023, it recovered with a net gain of 114,200 people, almost to pre-pandemic levels.
State officials called it a “stable foundation for continued growth.”
But that growth will likely be a lot smaller than in recent decades, said Eric McGhee, an expert at the Public Policy Institute of California.
“It will be better for the state in terms of total population,” McGhee said.
But California will still “lose more congressional districts in the 2030 census,” he added.
More people still left California for other states in 2023 than moved to California from other states, but it was far fewer than previous years.
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In 2021 — with coronavirus cases still rising and more people working remotely — California lost a net 355,648 people to domestic migration.
By last year that had fallen to 91,189, closer to pre-pandemic levels.
Still, Newsom’s critics say California isn’t out of the woods yet.
The state continued to suffer from high costs of living, uncertain power supplies, a housing and homelessness crisis and widespread concerns about crime.
The return to population growth does not appear to be a revival of the state’s stunning growth streak in the 19th and 20th centuries.
“The governor who brags about that looks a bit like the guy who lost thousands of dollars at the casino last night and bragged about making $20 at the blackjack table,” joked James Gallagher, the Republican leader in the state Assembly.