The
fires in Los Angeles brought more visibility to the long-standing Forest Fire
and Water issues in California. 10,000 structures have been destroyed and the
fires are still burning. The earthquake and fire in San Francisco in 1906 destroyed
over 500 city blocks and killed an estimated 3,000 people.
Why
Are People Leaving California — and Where Are They Going?
Moving Trends by Alex Keight Posted on August 19, 2024
Are
people leaving California? According to the latest PODS data, they’re not just
leaving — they’re moving out of California in droves, which begs the question:
Why is everyone leaving California? And where are they going?
A little background before we get into a deeper explanation: Just a few years
ago, working from home was far from the norm, but today 75 million U.S.
employees have
jobs that are compatible with remote work. Thanks to this new work-from-home
culture, many people have shifted priorities and decided to move out of
expensive cities and states — a major one being California. In fact, the Los Angeles Times
reported that
people leaving California outnumbered newcomers by more than 700,000 between
April 2020 and July 2022. California’s net move-out numbers reached a record
407,000 between July 2021 and July 2022. And in 2022 alone, more than 343,000
people left California — the highest exodus of any state in the U.S.
Okay, that covers the past few years, but what about now? Are people still
leaving California in 2024? The answer is yes. As of May 2024, almost 18,000 people had already
migrated out of the state. It’s clear that people are leaving the state, but
why are people leaving California?
While it’s easy to blame changing working conditions for the reason why people
are leaving California in droves, according to the
Department of Finance,
the truth is, California has been struggling with resident retention for nearly
25 years. Once the golden child for a burgeoning population, California has
been losing its residents to other states every year since 2000.
Why
People Are Leaving California
Why are people moving out of California? To put it plainly, the No. 1 reason is that California is expensive. The state consistently ranks in the country’s top five priciest states — in 2024, the Golden State comes in at the top spot. There are other reasons why Californians are fleeing the state, though.
An
Expensive Housing Market
According to Zillow, the average home price in California is $785,000. Even though some areas are seeing stabilizing or even dropping prices, as a whole, home values in California remain high. Increasingly high costs of living, housing, and transportation coupled with an increase in crime, pollution, and congestion has caused many people to relocate to more affordable cities and states.
High
Taxes
Some people are also moving out of California because of the state’s notoriously high taxes. California has the nation’s highest state income tax rate at 12.3 percent, along with steep sales and gas taxes. These financial burdens have driven many higher-income residents to states like Texas and Nevada, where no income taxes are imposed.
Low
Job Growth Rate
As if high house prices and taxes weren’t enough, another reason why Californians are leaving may be the sluggish job market. In recent years, California's job growth rate has been trailing behind the national average. Several factors contribute to this trend, including the state's high cost of living, strict regulations, and the ongoing challenges in key industries such as tech and entertainment. The slow job growth has raised concerns about the state's long-term economic prospects, as businesses and workers alike reconsider their place in an environment where opportunities may be more abundant elsewhere.
Businesses
Are Leaving California
As
mentioned, the low job growth rate goes hand-in-hand with the fact that some
businesses are leaving California. A 2024 article by the Hoover Institution calls California
one of the worst-performing states in the country when it comes to job growth,
with nearly all newly created jobs falling under the government sector.
Additionally, 441 businesses have left
California since 2018 and moved their headquarters to a different state. High
rent, high taxes, high costs of living for employees, and red tape are just a
few reasons cited by the exiters.
Curious where everyone is headed? We’ve analyzed the latest PODS moving data from July 2023 to
August 2024 to find out which cities and states people in California are moving
to in 2024. A few things we noticed they have in common? Green spaces, nice
weather, good public transportation, and big city amenities — all with a more
affordable cost of living.
https://www.pods.com/blog/people-leaving-california
Comments
California households are moving to States that have jobs they can get in States they can afford to live in. Some are moving closer to family.
Norb Leahy, Dunwoody GA Tea Party
Leader
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