In this piece on California, we’ll explore the surprising reasons why locals are choosing to flee California’s coastline, the cities they’re headed to, and what this massive shift might mean for the state’s future.
Don’t worry—it’s not just because of the high cost of avocados or rising rental prices. We will investigate the issue deeply and get you the answers you need to make educated choices.
California’s Not Going Down
California is an expensive place to live. The cost-demanding moving candidates start from people in financial issues to those on a constant income, such as retirees and a new group formed in the pandemic time – an employee who can work remotely.
Consider what an interstate ‘price parity’ cost of living index of California from the Federal Bureau of Economic Analysis reveals to us about affordable moving possibilities, it shows the state is expensive to live.
1. High Cost of Living
One of the most obvious driving factors behind California’s newest trend of leaving is the increasing cost of living going into 2025.
From sky-high rent prices in the cities to the insane costs of housing across the state, many people are finding it harder to make ends meet. Renting seems like the only option now with prices to purchase a home unattainable.
Housing pricing doesn’t make sense anymore when compared with the average salary. The average home price in California is about $800,000, which is far higher than the national average.
This is the price in the suburbs, but if you want to buy a standard 3 bed room in the cities, it can easily hit over $1.8 million for a very modest home. While California has some of the most scenic, best locations in the world, not everyone can afford to live in a mansion near the beach.
Many people find themselves in a never-ending cycle of paying wild rent prices just to share a small apartment with multiple roommates from Craigslist. A large portion of their salary goes to paying for a place they hardly get to enjoy.
California is known for its beautiful roads and paths, like Road 1. No one speaks about the exorbitant price of gas to get that car moving. With gas prices regularly above $5 per gallon, many locals are starting to leave the state to escape the trouble of refueling their cars at a price that feels like they’re filling up a private jet they can’t afford.
Some people have taken to van life to enjoy the scenery that CA has to offer, but even that is becoming an expensive, gas-guzzling way to live these days. It’s not just housing and gas draining people’s ability to stay. California has a higher-than-average state tax and a sales tax that comes to be about 8%. From groceries to dining out, everything costs more, way more.
Your dollar doesn’t go very far here so your life level of enjoyment isn’t at it’s highest despite how hard you work to afford life here. All of these factors together is the leading reason people are getting sick of the prices and moving on out.
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2. The Natural Disaster Issues
It’s no secret that California is prone to disasters. Just this week we had a huge earthquake off of San Francisco. This year we have seen some of the most devastating fires in history, erasing half of LA from the map to start over.
Entire communities have been destroyed, lives lost, and countless acres of land have burned. While the state’s efforts to combat these fires have improved over time, many residents find the fire risk too much of a concern, especially when it means evacuating homes and dealing with air quality that can lead to health issues.
As fires grow in intensity and frequency, many people are deciding that the risks outweigh the benefits of living in a state that might catch fire at any moment.
The earthquakes are another huge factor affecting northern California more often than normal. As CA sits on a fault line, it is prone to make quakes making insurance rates skyrocket as well.
Many insurance companies have raised their premiums so high that locals cannot afford to insure their homes. All these issues together make for a great reason to leave the state for a place that is more affordable.
3. Politics Taken Too Seriously
Politics, as we know, can be a sensitive topic, but in California, it has become one of the main reasons some are looking to head for other places in the US as things are getting heated. California’s progressive policies make some people feel their state isn’t representing them.
The political polarization seems to grow every year, some people are leaving in search of more moderate communities where they can feel their state supports their beliefs.
California’s progressive taxes mean that people with higher incomes pay a larger share of everyone’s taxes. The wealthy are leaving the state for more tax-friendly places, like Texas or Florida, without state income tax, saving thousands of dollars instead of turning it over to the government.
When the heads of big companies take their wealth out of the state, the government now has less to work with. There are also many regulations on companies making entrepreneurs and small business owners frustrated by high fees, taxes, and red tape.
4. The Traffic Jam
If you’ve ever tried to drive anywhere in Los Angeles, you know the feeling of being stuck in traffic for hours with zero movement. California is the king of some of the worst traffic congestion in the country. These commutes of hours on the daily are getting old while paying a premium dollar in taxes for roads that don’t get built.
Sitting in bumper-to-bumper traffic drains your patience. Of course you have public transportation in California, but it simply doesn’t serve as a realistic alternative for those outside the main city. You need a private car which adds to expenses and makes the traffic worse.
6. AC Year Round
The weather in California is gorgeous and borderline perfect. With great temperatures, sunny days, and the Cali cool breeze, it’s no wonder people head to the Golden State.
However, this beautiful weather comes with a price tag on your AC bills and drives up the cost of living in other ways. Hotter regions like Southern California mean more water to keep up the gardens, which also adds to your water bill.
Where is Everyone Headed?
So, where are all these California former sun lovers headed? Many are headed to states with lower taxes and less stress:
Texas: The big cities in TX are attracting former Californians who are looking for a lower cost of living, no state income tax, and a more business-friendly environment. People that love the sun love Texas as they can still head to the beach and keep their same wardrobe.
Nevada: With no state income tax and affordable living, Las Vegas—has become a hot spot for those fleeing California’s high costs since it is still quite close to it all.
What Does It Mean for California’s Future?
While California may be losing population, it’s important to note that the state is still incredibly growing in other sectors. Not all is lost. If this trend continues, there will be long-term consequences, especially in taxes, business development, and on the local economy.
California might be forced to change it’s tax policies, alter regulations, and address its housing prices to keep residents from fleeing to more affordable states. When big giants like Elon Musk move out, it is a big red flag for the state.
All that being said, California is still California. With its, endless entertainment options, tech and entertainment industries, and Hollywood stars, it will always be a major draw for people who seek fame and opportunity.
No matter if you are planning to move within the state, across state lines, or across the country due to the prices in California, know that Moving APT will get you there for a fraction of the price.
Frequently Asked Questions
Is California really losing population instead of growing?
Yes, 2025 data shows that California has seen a bigger outflow of residents in recent times. Many of them are moving to states like Texas, Nevada, and Arizona. Many big companies have packed up ship due to tax regulations and housing prices which explains this flow.
What is the main reason people are leaving California?
The main reasons is the high cost of living, which extends way beyond the pocket of average salary earners, housing affordability in terms of earnings, traffic, and political differences. Many people are moving to more affordable states with better quality of life.
How can I move from California to NY.
If you need cross-country movers, just head to Moving APT, they will get the job done for you. From professional service providers to all the options of service to move as you wish, we have it all.
Are businesses leaving California?
Yes, many companies especially in tech and motors are moving or expanding to other states thanks to lower taxes, less regulation, and more business-friendly environments. With them their employees are getting great relocations packages and packing up from CA. Tesla is a perfect example.
Is California still a good place to live?
California still offers incredible job opportunities, a diverse, unmet beachy culture, and the best street food you will find in the USA. California has it all, from mountains to plains to cities with nightlife. Nothing is lacking.