Why Are People Leaving California?
“Just Thinking"
It's the edge of the world and all of western civilization
The sun may rise in the East, at least it settles in the final location
Psychic spies from China try to steal your mind's elation
And little girls from Sweden Dreams of silver screen quotation
And if you want these kinds of dreams, it's Californication
I was talking with a friend the other day who told me about a relative who sold their home in California and moved to Tennessee. She mentioned that they started looking at homes in Tennessee over three years ago, and because of the influx, blame California, the price of housing there has gone up exponentially. I’ve heard the same thing about Idaho, Nevada, Texas, and Florida. Meanwhile, the cost of housing in California may have leveled out, but it remains one of the highest in the country.
California has countless attractions. Whenever I travel throughout the state, I’m blown away by its natural beauty. I enjoy visiting other states, but I’m always grateful to come back home. The beautiful weather year-round, mild winters, and abundant sunshine are hard to beat. There’s access to stunning nature, from nine national parks to beaches, deserts, and mountains. California also boasts a thriving job market, remaining a hub for tech, entertainment, and agriculture. Add to that the diverse culture, incredible food scene, and endless entertainment, theme parks, world-class museums, music festivals, and sports events. So why are so many people leaving?
Let’s check the stats. According to U-Haul, Penske, and Budget, California has led the nation in outbound migration for several years. This has created a fleet imbalance, too many trucks in destination states and not enough in California. To fix this, companies either ship trucks back (which is costly) or raise prices for outbound moves. For example, a 10-foot truck from Fresno to Austin costs about $3,914, while the same truck going the opposite direction costs $1,409. Outbound trucks can be up to five times more expensive than inbound.
Here are some of the contributing factors driving this trend:
- High Cost of Living – California consistently ranks among the most expensive states. Median home prices are over $860,000, and rents are far above the national average. Since 2014, the state has experienced a net loss of over 700,000 adults citing housing as the primary reason for leaving. Everyday expenses like gas, groceries, utilities, and transportation also cost more.
- High Taxes – California has some of the highest state income and sales taxes in the country, which can be a major burden for individuals and businesses.
- Business Climate & Job Relocation – Companies cite high operating costs, strict regulations, and a challenging business environment as reasons for relocating.
- Remote Work Flexibility – The rise of remote work has allowed many Californians to keep their jobs while moving to more affordable states with lower taxes and a better quality of life.
- Quality of Life Concerns – Issues like traffic congestion, homelessness, and crime rates in major cities have pushed some residents to seek quieter, safer communities elsewhere.
- Climate and Natural Disasters – Frequent wildfires, droughts, and high insurance costs related to natural disasters have made living in California riskier and more expensive.
Like many lifelong Californians, I have no plans to leave. I believe this state is worth fighting for. With time, effort, and patience, the pendulum will swing back, and California will once again live up to its name as the Golden State.
Let me know what you think.
@ChuckBarberini - #ChuckBarberiniRealEstate
@ChuckBarberiniRealEstate - #JustAskChuck
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