According to this month's California Community Poll, over 40% of Californians are considering leaving the Golden State — with over half of those people citing the state's high cost of living, and housing in particular.
Why are people leaving California? Since 2020, when the population decline began, California's population has shrunk by about 500,000 people. Experts credit California's high cost of living as the main driver for people moving out of state.
The driving force is the cost of healthcare, housing and everyday expenses. SACRAMENTO, Calif. — 40% of Californians are considering leaving the state, according to a new survey from the LA Times and a group of nonprofits. The survey shows the driving force is the cost of healthcare, housing and everyday expenses.
Well, there are a few reasons. The high cost of living, taxes, and business regulations in California have made it a tough place for tech companies to thrive. Additionally, remote work has become more common, so businesses are exploring locations that offer a better quality of life for their employees.
The poll, conducted by Strategies 360 in partnership with the Los Angeles Times and three community organizations, found that 40% of Californians are seriously considering moving out of the state.
TOP DESTINATION STATES FOR PEOPLE LEAVING CALIFORNIA
The most popular move-to state from California in 2023 is Texas, followed by Florida. Washington, Oregon, and Tennessee also made the top five.
The most common destinations for California migrants were Texas, Arizona, and Nevada. Texas had the most California transplants from 2020 to 2021: 105,000.
In 2022, the state's population dropped by roughly 138,400 people, to 38.94 million. It was big news a few years ago when, for the first time in more than a century, California's population shrank.
Chief among them is the need to stretch their savings and their Social Security checks. The cost of living is a key factor, said Dan Herron, a CPA and partner at Better Business Financial Services in San Luis Obispo, California. "We look at their budget and see how much they spend and how long it will last," he said.
The reasons vary—but there are some common ones including high tax rates, punitive regulations, high labor costs, and a high cost of living. Many CEOs say their employees can't afford housing in bigger cities like San Francisco.
High taxes are one of the main reasons why people are leaving California. California's income tax rate is 13.3%, the country's highest. If you take a look at the sales tax ranging from 7.25% to 10.75%, it's not much better.
Depending on your lifestyle preferences and budgetary limitations (or lack thereof), you may find that it's still worth it to live in a city with a higher cost of living. Some reasons: Better job opportunities, broader range of public and private schools or easier public transportation systems.
“Housing costs are the biggest contributor to California's high cost of living, and the costs are so high because liberal politicians have imposed mandates, fees, construction delays, excessive permits and more,” said DeMaio.
No, California is not going to fall into the ocean. California is firmly planted on the top of the earth's crust in a location where it spans two tectonic plates.
The limits for what is considered low-income have increased in almost every county statewide. Orange County is the most expensive of the SoCal counties, one-person households making less than $80,000 are considered low-income. Bay Area counties had the highest limit with $104,000 being considered low-income.
The California Exit Tax proposes that if you or your business have been a full-time resident of the state of California and you make $30 million per year (or $15,000,000 if a married taxpayer is filing separately from their spouse), any money that you make from business, income or investments made in the state would be ...
Over 78,000 seniors moved to Florida from other states during that time — more than to any other state, and more than three times as many as Arizona, which ranked second on the list.
And secondly, they are also states where housing is more affordable and available than in parts of the country that lost residents. The states that attracted the most new residents in 2022 are Florida, Texas, North Carolina and South Carolina, followed by other states in the South and West.
Three of the five biggest move-to states for Californians (Texas, Nevada and Florida) have no state personal income tax, and two others (Idaho, flat 5.8% and Arizona, flat 2.5%) are lower than the personal state income tax for some in California, which ranges from 1% to 12.3%.
California lost 117,552 people between Jan. 1, 2021 and Jan. 1, 2022, according to the state's Department of Finance, bringing its population back to where it was in 2016.
Here are the top five cities that Californians are moving to: Dallas, TX. Austin, TX. Seattle, WA.
Florida may be the state with the highest number of move-ins, but keep your eye on North Carolina. In 2023, Wilmington, Raleigh, Charlotte, and Asheville all found a spot on the list, shining the light bright on the Tarheel State.
Since studies have shown that sunlight positively influences mood, perhaps everyone should move to CA – it might make the world a happier place. Practicality aside, it turns out moving to California probably won't make someone happier.