Where Are Californians Moving To?

People are moving out of the Golden State for several reasons and this article will cover why Californians are moving out of the state. It will explore the locations with Where are Californians Moving to.

Top Reasons Why Californians Are Leaving?

Here are several reasons why Californians are leaving the state-

• Skyrocketing housing costs- The cost of housing (buying or renting) is exceptionally high and this makes it unaffordable for many residents.
• High taxes and cost of living- California is known to have high state income taxes, sales taxes, and a higher cost of living. These factors can significantly impact financial well-being.
• Traffic congestion and urban stress- Major urban locations in California experience high traffic during peak hours and this results in longer commutes and poor quality of life. This compels residents to move out of the state.
• Natural disasters (wildfires, droughts)- The state experiences natural disasters more frequently and this can pose risks to safety and quality of life. To feel secure about yourself and your property, it is better to move out of the state.
• Desire for more space and remote-friendly environments- With increasing demand and preference for remote work, residents of California want larger homes. Thus, residents move out for affordable living.
• Business and political climate- Some people encounter scenarios like dissatisfaction in business and political variations.

Where are Californians Moving To? The Top 7 Most Popular States

Texas

Affordable housing- Median home prices in Texas are significantly lower while the median home price in California is the highest in the nation. There are plenty of affordable options for renting and buying in Texas. This encourages residents of California to grab the opportunity to be homeowners in Texas. Affordable housing also affects the cost of living and quality of life.

Booming job market- Texas boasts a diverse job market with a dynamic economy with strong job growth across various sectors.

• Austin- In the past few years, Austin has become a major tech hub and attracts companies like Tesla, Apple, and Oracle. It acts as a magnet for tech professionals looking for opportunities outside Silicon Valley.
• Dallas-Fort Worth- This is a corporate powerhouse with several strong sectors including finance, logistics, healthcare, and professional service.
• Houston- Known as the “Energy Capital of the World”, Houston remains strong in oil and gas. It also has a thriving healthcare sector.

No state income tax One of the factors that attract Californians to Texas is “no state income tax”. On the other hand, Californians face some of the highest income tax rates in the US.

Growing tech and startup scene- Texas is known to foster a very supportive environment for innovation and startups. There are several tech giants in the state. Austin has a vibrant entrepreneurial ecosystem that attracts venture capital. This encourages many Californians who are looking for such opportunities to move here.

Arizona

Lower cost of living- The cost of living is one of the major parameters people consider while planning to move. And lower cost of living in Arizona is a significant factor that attracts Californians to move here. The housing cost is affordable and both for purchase and rent. Other essential expenses are also available at lower costs and provide financial relief for Californians. This results in a high quality of life.

Warmer climate and scenic beauty- Arizona boasts sunshine and warm weather for most of the days of the year. If you love warm, dry climates and stunning desert landscapes then Arizona is a perfect location. There are several outdoor opportunities like hiking, golfing, and more that Californians appreciate and enjoy.

Fast-growing cities like Phoenix and Tucson-

• Phoenix- This is one of the fastest-growing cities in the US with rapid expansion and surrounding metropolitan areas. The city has a diverse economy with various thriving industries including technology, healthcare, logistics, and manufacturing. The city is equipped with amenities, job opportunities, and more.
• Tucson- The city also has a growing economy with strength in optics, aerospace, and education. It offers a laid-back vibe than Phoenix and has many unique cultural attractions.

Popular with retirees and remote workers- Arizona with its lower cost of living and warm weather has been a dream destination for retirees. It has several adult communities and plenty of recreation opportunities for people of all ages. The tax system of the state is also affordable.

Since the pandemic, there has been a rise in remote work and Californians who are tired of hectic work schedules prefer working remotely. The parameters, like the affordable cost of living and good internet infrastructure, make it the right place.

Nevada

Las Vegas and Reno attracting Californians-

• Las Vegas- Las Vegas has a thriving and diverse economy with a world-famous entertainment and tourism industry. There are several sectors that are growing in the city like tech companies, healthcare providers, and logistics firms. These industries are generating employment opportunities and offer a vibrant lifestyle. There are countless events, cultural events, and dining options.
• Reno- This is generally known as “The Biggest Little City in the World”. The city has transformed into a tech hub and is often referred to as the “Silicon Desert”. The city is home to major tech giants like Tesla, Switch, and Apple that attract tech professionals. The city has several attractions and provides various outdoor recreation opportunities. It has a laid-back life compared to Las Vegas.

No state income tax- There is no state income tax in Nevada which means individuals and businesses who move from California enjoy financial benefits. This means they have substantial savings and a higher net income. Nevada is an attractive option from a financial perspective.

Proximity to California- Nevada shares a long border with California that makes commuting easy. Southern Californians have to drive a few hours and they can easily visit their family and friends in Las Vegas. Reno is very accessible from Northern California.

Lower property taxes- Property taxes can vary by county within Nevada and they are generally lower than in California. This contributes to the overall affordability of renting and buying a property.

Washington

Tech opportunities in Seattle- Seattle is the global powerhouse for the tech industry and it is home to several tech giants like Amazon, Microsoft, and Google. The city has a thriving ecosystem for startups and smaller tech companies. This attracts Californians who are looking for new opportunities. The companies in the city have different cultures and lower costs of living. There is a high demand for skilled professionals in areas including software development, e-commerce, and cloud computing.

Beautiful Pacific Northwest lifestyle- Washington offers a highly appealing centered around its natural beauty. The Pacific Northwest has lush evergreen forests, majestic mountains, and dramatic coastlines. There are endless outdoor recreational opportunities like hiking, skiing, kayaking, snowboarding, fishing, and more. Californians enjoy the Pacific Northwest lifestyle as it is low-cost, laid-back, and community-focused.

Slightly lower living costs compared to California (varies by region)- The cost of living in Seattle can be expensive but compared to California it is affordable. There are several affordable options for housing and allows more space than in most of major metropolitan cities in California. The other factor contributing to a lower cost of living is no state income tax and residents find opportunities to save a large portion of their salary.

Oregon

Portland’s appeal for creatives and young professionals- Portland is the largest city in Oregon and has cultivated a strong reputation as a prime destination for artists, musicians, entrepreneurs, and designers. It has a vibrant art culture scene with independent boutiques, craft breweries, and coffee shops. The progressive urban environment of Portland encourages young professionals and creatives to look for a dynamic environment. The city has a strong and growing tech sector and provides opportunities in various innovative fields.

Nature-focused lifestyle- Oregon is a paradise that offers an incredible diversity of natural landscapes. It has a dramatic Oregon Coast that is beautiful compared to California beaches. There are plenty of outdoor recreational opportunities including hiking, storm watching, and more.

Oregon is covered in lush, green forests and provides trails for hiking, mountain biking, and camping. There are several rivers like Willamette and Columbia that offer water sprout activities.

More affordable real estate – Oregon has various affordable housing options compared to metropolitan areas in California. This allows Californians to buy larger homes and secure rental agreements.

Idaho

Rapid growth in cities like Boise- Boise is the capital city of Idaho and it has experienced rapid population growth and economic growth in recent years. The economic growth has resulted in economic diversification and Boise has developed into a hub for industries like tech, healthcare, and advanced manufacturing. There is the introduction of amenities like new restaurants, cultural venues, and infrastructure. The expanding economy is generating more job opportunities in different sectors.

Lower housing costs- Housing costs are lower in Boise and the housing market has seen significant appreciation because of the influx of new residents. Californians who dream of owning a home can buy a home in Idaho. They can purchase larger homes and experience a high quality of life.

Strong sense of community and slower pace of life- Many Californians seek escape from intense urban stress and high-pressure and Idaho offers a high-knit community feel. Idaho is full of life with wilderness, mountains, rivers, and lakes. There are plenty of opportunities for outdoor recreation like hiking, fishing, and skiing. Traffic in Boise is comparatively low in Los Angeles and Bay Area.

Florida

No state income tax There is no state income tax in Florida, that attracts Californians who pay large sums as income tax on their wages. California is one of the states with the highest income tax rates.

Warm weather and beach lifestyle- Florida is known as “The Sunshine State” and it boasts a warm, humid, and sunny climate for most of the year. This is a significant attraction for those who are looking for warmer climates. Florida also covers thousands of miles of beach-centric lifestyle. It offers plenty of water activities, outdoor recreation, and resort living.

Growing job opportunities in tourism, healthcare, and tech- There has been a growing job market with thriving industries like tourism and hospitality, healthcare, and tech.

In-State Moves: Californians Moving Within California

Shift from coastal cities (e.g., San Francisco, LA) to inland areas (e.g., Sacramento, Riverside, Bakersfield)

Coastal Exodus- Dense coastal areas like San Francisco, San Diego, Los Angeles, and parts of the Bay Area are quite expensive. The cost of housing, traffic, and faster pace of life can increase stress in your life. The charm of the beach or tech hub is no longer worth the financial burden.

Inland attractions- There is noticeable migration to California’s inland regions like

• Sacramento- This is the state capital and offers a robust job market, a relaxed pace of life, and affordable housing. It is in proximity to both the Bay Area and the Sierra Nevada mountains.
• Bakersfield- This offers the most affordable housing in the state with remote work opportunities and a lower cost of living.

Motivations: affordability, more space, suburban lifestyle- There are several driving forces for internal shifts and more.

• Affordability- The cost of living is one of the major factors and moving inland can mean the difference between renting and owning the house.
• More space- Coastal living means smaller homes, smaller lots, and less personal space. New developments in suburbs result in larger houses, bigger yards, and more room to spread out.
• Suburban Lifestyle- There are several benefits of a suburban lifestyle like better schools, community feel, perceived safety, and less traffic congestion.

Tips for Californians Planning to Relocate

• Research cost of living differences- Housing is one of the major factors and requires detailed research is helpful. Study all the inclusive parameters of the cost of living like utilities, groceries, transportation, and healthcare. Compare state income taxes, sales taxes, and property taxes. Use different online tools like a moving cost of living calculator to get an easy comparison between California and the destination location.
• Consider job opportunities, schools, and lifestyle fit- Research the industry of your choice to explore the job opportunities. If you are moving with children, learn about good schools or colleges on the basis of factors like school ratings, proximity, and extracurricular activity. Learn about the lifestyle in the new city and compare it with California.
• Plan a scouting trip before moving- A scouting trip will give you an immersive experience and experience of life as a local. Connect with locals to dig into history, pros and cons, and more.
• Budget for moving costs and relocation logistics- Get multiple moving quotes for your move from different movers. Or estimate the moving cost using the Moving Cost Calculator. The moving cost will help set the moving budget and easy management of finances.
• Stay aware of state tax and residency rules- In the new state, you will be paying taxes differently and you must learn about these variations in advance.

Conclusion

The decision to leave California is based on different parameters including skyrocketing cost of living, specifically the cost of housing and high taxes. There have been increasing natural disasters like wildfires and droughts that are increasing insecurity in Californians. Concerns about business and political climate contributed to the outward migration.

Californians are not only moving they are finding new homes in states like Texas, Arizona, Florida, Idaho, Nevada, Washington, and Oregon. These states offer lower cost of living compared to California and most of them have no state income tax. They have a booming job market with a relaxed pace of life.

If you are planning to move to any of the states from California, move with Van Lines Move. We will connect you with top movers in California for free and assist you in your move.

FAQ

What state is like California but cheaper?

States that are like California but cheaper are Texas, Arizona, Florida, Idaho, Nevada, Washington, and Oregon.

Where are wealthy Californians moving to?

Wealthy Californians are moving to Texas, Wyoming, Florida, Nevada, Tennessee, and Washington.

Are Californians moving more for affordability or lifestyle?

Yes, they are experiencing a higher cost of living and people prefer an affordable lifestyle.

How does the California exodus affect housing markets in destination states?

The California exodus affects housing markets primarily by driving up demand and, consequently, home prices and rental costs.