Blame the weather: Southern California homebuyers pay 122% more ...Middle East

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Think about all of the metrics used to track Southern California housing prices.

This past weekend reminded us of an important yardstick often ignored: how pleasant Southern California winters are.

We enjoyed seasonally delightful temperatures as most of the country faced Winter Storm Fern. More than a foot of snow fell in many areas, with ice storms elsewhere. Temperatures dropped well below zero in numerous spots.

You weren’t the type to mention our meteorological advantage to relatives or friends who were iced in?

My trusty spreadsheet used a simplistic measure to gauge weather affect on housing costs. Consider the extra cost of Southern California’s mild climate by eyeballing the six-county median sales price vs. the national costs, using data from real estate tracker Attom.

It’s the type of financial statistic a snowed-in loved one could use as a retort to any Southern Californian flaunting their weather: The typical Southern California buyer paid $812,000 in November compared with $365,000 for their American peer.

That’s a 122% premium – meaning buying the typical home costs more than double here than nationwide.

Some call it a sunshine tax. Since there are national warm spots with far cheaper housing, don’t forget Southern California’s dry air.

It’s more the sunshine-with-no-humidity premium. Oh, did we mention: Fewer bugs?

One factor

Is the region’s world-class weather solely to blame for this huge spread in housing costs?

Of course not.

The region’s pokey residential construction pace is a big factor. And don’t forget the lofty salaries paid to many of the region’s workers, which bid up prices.

Plus, the same lack of precipitation also creates challenges for Southern California real estate, including droughts and wildfires.

But you cannot ignore the mild climate’s role in that wide chasm between local home costs and what the nation pays.

Forget stats on what’s for sale or how unaffordable it is. This may sound cheesy or not very cerebral, but weather matters.

We may ignore this price pressure because the weather is nothing new. On average, a Southern California residence has been 118% pricier than the national norm, according to stats going back to 2005.

Yet the gap has not always been steady. While the premium has stayed above 100% since 2012, economic swings can alter the size of the gap.

Over the past 21 years, it peaked at 155% in May 2007 – during the previous housing bubble – and bottomed at 62% in April 2009, after the bubble burst.

Coastal costs

More evidence of housing’s climate impact is how this price gap relative to the national average varies across the region.

Everyone knows what proximity to the coast costs.

It’s a key reason why Orange County’s $1.16 million median price in November was 217% above the U.S. price. Yes, more than triple.

And this gap has averaged 202% over 21 years. Extremes? The county’s gap hit a high 243% in February 2025, perhaps a signal that current prices are a bit lofty. A low of 136% was in November 2008.

In Los Angeles County, the $888,000 median was a 143% premium. The gap has averaged 146% since 2005, ranging from 177% in May 2007 to 96% in May 2009.

San Diego County’s $872,200 median was a 139% premium, averaging 137%. Extremes: 169% in February 2005 and 81% in November 2008.

Ventura County’s $850,000 median was a 133% premium, averaging 155%. Extremes ranged from 201% in February 2006 to 107% in December 2008.

Sea breezes boost real estate values. Think about the Inland Empire, with warm winters but sizzling summers. It’s where homes sell for more modest premiums.

Riverside County’s $599,000 median was a 64% premium vs. a 61% average. Its high was only 109% in November 2006. And in June 2009, it slumped to 9%.

And San Bernardino County’s $525,000 median was a 44% premium compared with the 36% average. It has never been above 82%, with a high set in November 2006.

And in June 2009, its homes were 13% cheaper than the national norm.

Weather isn’t just bragging rights. It creates housing demand that helps make Southern California’s housing affordability headache so tough to cure.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

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