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Coastal folks not venturing
to Coachella Valley
to Coachella Valley
Five years ago, 53 people a day on average were moving to the Coachella Valley.
Now the desert is losing residents — and their valuable knowledge, skills and tax money.
The valley's loss is part of a larger Inland Empire-wide trend that saw 23,750 people leave the region
comprising Riverside and San Bernardino counties in 2008 and 2009, a new analysis of state records
shows. That's about 32.5 people a day.
During a healthier local economy from 2000 to 2007, about 511,720 people moved from coastal
Southern California communities to the inland region. That's roughly 175 residents a day.
The economy is driving the trend, said longtime Inland Empire economist John Husing with
Economics & Politics Inc., who has studied domestic migration figures for the decade and compiled the
analysis.
The migration drop-off is affecting spending at businesses, commercial and residential real estate,
and cities dependent on tax dollars.
Many people in Los Angeles, Orange and San Diego counties were lured by the valley's relatively
affordable homes, Husing said.
Even today, the median price for a house in the valley is $175,140, compared with $349,600 in Los
Angeles and $499,580 in Orange County, according to August home-sales figures from the California
Association of Realtors.
An average 53 people moved to the valley daily in 2005. While an influx of people provided growing
challenges, it also provided the desert extra tax and spending dollars for local agencies and
governments, such as cities and schools.
Retailers worry about a drop in spending, and economic development specialists have more
difficulty bringing in high-end jobs.
Cities dependent on property tax receipts have less money available, and real estate agents say demand still lags for housing and commercial space.
Overall, property tax receipts dropped 1.8 percent the past fiscal year, and city tax receipts have fallen
four years in a row, according to a report released Oct. 6 by the National League of Cities.
Husing and other economists said the loss in inland migration is a concern not only because of the loss of wealth, but also the knowledge. From 2000 to 2008, 52 percent of workers migrating inland had a bachelor's degree or better, Husing said.
That “ultimately lets you build the higher end of your economy,” he said.
For Craig Dunham and many others who've migrated to the valley, affordable housing has been one draw. But other, intangible issues often play into the picture.
Dunham moved to Rancho Mirage two years ago after living in Long Beach for nearly two decades.
“The cost of housing was a factor — without a doubt — and played a large role in the decision,” Dunham
said.
A job change dramatically altered his commute, and he had an opportunity to care for his aging mother.
“And the valley has a slower and easier pace of life when compared to the urban sprawl of L.A.,”
Dunham said.
Bob Mastragelo, 63, recently moved to the valley after finding a house in Del Webb Sun City in Indio.
It was considerably less expensive than his Thousand Oaks house.
“I already have a few friends, and I know I can sustain myself in a home that cost less to acquire,”
Mastragelo said.
The slumping business environment on the coast also prompted his move.
In July, Vincent Arovola moved to Palm Springs from San Francisco. He welcomed the heat after living on San Francisco's misty, often chilly waterfront.
“I moved down here for the 100-degree weather,” he said. “I fell in love with the desert on my first visit
here in 2000.
“Cheaper rents were a consideration, but mostly I found San Francisco had become an extremely
difficult city to live in,” Arovola said.
San Francisco resident Mike Garibaldi Frick is buying a fixer-upper in Araby Cove in Palm Springs.
“The house is a bit above my budget, considering the price plus the work I need to put into it,” Frick
said. “But I love Palm Springs and especially the site I've found my perfect house on. So I'm making the
house owner plunge.”
Others are part of the growing trend and leaving.
Brooks Lewis left Palm Springs in June for West Hollywood. He was willing to take 25 percent less
for his house than he in paid in 2005.
“The place, to be frank, was very boring, and there was nothing to do,” Lewis said of Palm Springs.
“The heat is stifling.”
According to 2009 census population estimates, a net increase of nearly 17,500 people moved into Riverside
County from July 1, 2008, to July 1, 2009. But that figure includes migrants from everywhere, not just
coastal communities, the Census Bureau reported.
Overall in 2009, Riverside County had a 1.8 percent population increase, and that included births. An
estimated 2.13 million people called Riverside County home last year.
Incomes fell in the inland area last year, and the poverty rate rose, making it tough for some people to
move. The annual median earnings fell to $55,352 in Riverside County from 2007 to 2009, a 7.9 percent
drop. The state drop was 4.7 percent to $58,931.
Food-stamp usage more than doubled during that time in Riverside County, to 6.3 percent from 2.9
percent, county officials reported.
http://www.mydesert.com/fdcp/?1287426751308
Now the desert is losing residents — and their valuable knowledge, skills and tax money.
The valley's loss is part of a larger Inland Empire-wide trend that saw 23,750 people leave the region
comprising Riverside and San Bernardino counties in 2008 and 2009, a new analysis of state records
shows. That's about 32.5 people a day.
During a healthier local economy from 2000 to 2007, about 511,720 people moved from coastal
Southern California communities to the inland region. That's roughly 175 residents a day.
The economy is driving the trend, said longtime Inland Empire economist John Husing with
Economics & Politics Inc., who has studied domestic migration figures for the decade and compiled the
analysis.
The migration drop-off is affecting spending at businesses, commercial and residential real estate,
and cities dependent on tax dollars.
Many people in Los Angeles, Orange and San Diego counties were lured by the valley's relatively
affordable homes, Husing said.
Even today, the median price for a house in the valley is $175,140, compared with $349,600 in Los
Angeles and $499,580 in Orange County, according to August home-sales figures from the California
Association of Realtors.
An average 53 people moved to the valley daily in 2005. While an influx of people provided growing
challenges, it also provided the desert extra tax and spending dollars for local agencies and
governments, such as cities and schools.
Retailers worry about a drop in spending, and economic development specialists have more
difficulty bringing in high-end jobs.
Cities dependent on property tax receipts have less money available, and real estate agents say demand still lags for housing and commercial space.
Overall, property tax receipts dropped 1.8 percent the past fiscal year, and city tax receipts have fallen
four years in a row, according to a report released Oct. 6 by the National League of Cities.
Husing and other economists said the loss in inland migration is a concern not only because of the loss of wealth, but also the knowledge. From 2000 to 2008, 52 percent of workers migrating inland had a bachelor's degree or better, Husing said.
That “ultimately lets you build the higher end of your economy,” he said.
For Craig Dunham and many others who've migrated to the valley, affordable housing has been one draw. But other, intangible issues often play into the picture.
Dunham moved to Rancho Mirage two years ago after living in Long Beach for nearly two decades.
“The cost of housing was a factor — without a doubt — and played a large role in the decision,” Dunham
said.
A job change dramatically altered his commute, and he had an opportunity to care for his aging mother.
“And the valley has a slower and easier pace of life when compared to the urban sprawl of L.A.,”
Dunham said.
Bob Mastragelo, 63, recently moved to the valley after finding a house in Del Webb Sun City in Indio.
It was considerably less expensive than his Thousand Oaks house.
“I already have a few friends, and I know I can sustain myself in a home that cost less to acquire,”
Mastragelo said.
The slumping business environment on the coast also prompted his move.
In July, Vincent Arovola moved to Palm Springs from San Francisco. He welcomed the heat after living on San Francisco's misty, often chilly waterfront.
“I moved down here for the 100-degree weather,” he said. “I fell in love with the desert on my first visit
here in 2000.
“Cheaper rents were a consideration, but mostly I found San Francisco had become an extremely
difficult city to live in,” Arovola said.
San Francisco resident Mike Garibaldi Frick is buying a fixer-upper in Araby Cove in Palm Springs.
“The house is a bit above my budget, considering the price plus the work I need to put into it,” Frick
said. “But I love Palm Springs and especially the site I've found my perfect house on. So I'm making the
house owner plunge.”
Others are part of the growing trend and leaving.
Brooks Lewis left Palm Springs in June for West Hollywood. He was willing to take 25 percent less
for his house than he in paid in 2005.
“The place, to be frank, was very boring, and there was nothing to do,” Lewis said of Palm Springs.
“The heat is stifling.”
According to 2009 census population estimates, a net increase of nearly 17,500 people moved into Riverside
County from July 1, 2008, to July 1, 2009. But that figure includes migrants from everywhere, not just
coastal communities, the Census Bureau reported.
Overall in 2009, Riverside County had a 1.8 percent population increase, and that included births. An
estimated 2.13 million people called Riverside County home last year.
Incomes fell in the inland area last year, and the poverty rate rose, making it tough for some people to
move. The annual median earnings fell to $55,352 in Riverside County from 2007 to 2009, a 7.9 percent
drop. The state drop was 4.7 percent to $58,931.
Food-stamp usage more than doubled during that time in Riverside County, to 6.3 percent from 2.9
percent, county officials reported.
http://www.mydesert.com/fdcp/?1287426751308
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