BAKERSFIELD, Calif. (KGET) – Despite a significant increase in home prices over the past year, real estate analyst Gary Crabtree says Bakersfield remains one of the most affordable cities in California.
“People are commuting or moving to Bakersfield because they can no longer afford housing in Southern California or Northern California,” Crabtree said.
Crabtree said the migration from the more expensive parts of California to Bakersfield has resulted in a significant decrease in the number of homes available. There were only 427 listings, according to its October 2021 housing report. This is a drop of 30% from the same period last year.
The conclusion in Crabtree’s report that shocked him was the median cost of new construction, which increased by more than 30% from the previous month.
“The price of wood has increased [and] there is a shortage of materials, ”Crabtree said. “Many of them are in shipping containers off the coast waiting to be unloaded, which has slowed construction.”
Crabtree said October is usually the start of an off-season when prices drop. This year, however, he said sales volume was constant compared to the rest of the year and prices appeared to be leveling off.