Why the North State?

Why the North State?

For those of us that have been here in the North State for awhile, this question is asked frequently. The answer is not an easy one; there are so many variables that influence this question that one hardly knows where to begin.

In Shasta County, with Redding as the hub, our growth has been largely tied in with those folks described as “equity refugees”, or those buyers that were sellers in the Bay area that made a nice profit on their home there and reinvested in the Redding area without a mortgage payment. These new residents have become the “new spenders” that further the service industries that fill the Redding area, from restaurants to retail to the big box stores of Winco, Costco, and Best Buy. In fact, both WalMart and Lowe’s has realized this and both of these retail giants have new stores in their plans, with a WalMart just opening in Anderson along Interstate 5.

In Tehama County, centered around Red Bluff, much the same is happening, and again, the retail is expanding, with a new Home Depot and many new auto dealers, the big drug stores, and of course a new WalMart. Between Redding and Red Bluff, the “buzz in the real estate community” is the proposed Del Webb development, which is already changing the nature of rural Cottonwood, eventhough ground breaking for this exciting area-changing project is a year off. And, with this planned growth, prices are starting to go up, with land prices jumping as much as 200% over the past 2 years.

In Butte County, with Chico as the focal point, it is almost a carbon copy of the other North State areas, with luxury homes now over a million dollars and retail following the new residents, with impressive developments all along the east side of what use to be rural Highway 99. Chico State University continues to draw students from all over the state, and nation, and with its reputation as still a small-town college, is setting itself apart from the big campuses as “the place to be”. An environmentally sensitive community, the civic, business, and government entities are working together to further the image of Chico as a community of higher education and a quality of life unheard of in much of the rest of California.

So where are we going, and will the folks in the next few years to come still be asking the question, why the North State? My answer is yes, for we do not see any end to the “migration” and the resulting growth. Yes, we do need more industry and jobs, but we are seeing an increase in the high tech, medical, and educational communities. There is “talk” of Shasta College becoming a 4 year college in the future, even with their expansion into a new campus in Tehama; Shasta Regional Medical Center, under new ownership is adding both departments and medical personnel; and the WalMart distribution center along I5 in Red Bluff is getting the attention of other retailers that need these kinds of facilities and cannot afford the higher prices as you go further south. And yes, the overall quality of life in this part of “the other California” is still very appealing to many throughout the metro areas to our south. With the technology now available to all, graphic artists can set up shop in Corning and do business in the Bay area, and sales reps can live in Paradise and cover the entire Northwest. And, for the recreation enthusiasts, living in Redding will enable you to be within 4 hours of more recreation than any other location in the US. Not bad for skiers, boaters, climbers, or even folks that like to attend the opera in San Francisco.

As far as real estate, and if you are in it for the long haul, unless the economy hits bottom, you should have a job in the North State. Be prepared to answer the question, why the North State? for it will continue to be asked, and the answers may be as hard to find as now, and that “mystery” will continue to befuddle many of us as folks continue to move north. As professionals, we must prepare ourselves as best we can to answer the question, so stay in touch with your local economic development groups; attend your Chamber of Commerce meetings; and become part of your community. You, as a real estate professional, are the first one that our newcomers will see, and that is their good fortune.