Californians Heading To Southwest States At A Stunning Pace

California is known for amazing year-round weather, gorgeous beaches, and a plethora of dining options and things to do. It is the 3rd largest state in the United States and has the largest population in the entire country. However, over the past year, a record number of people have been leaving the state and moving elsewhere. Perhaps the Covid-19 pandemic is to blame or possibly the rising housing market, either way, one thing is clear, California residents are moving out of the state at a startling rate. Between January 2020 and January 2021, California lost more than 180,000 residents, and it was the first yearly loss ever recorded for the state.

Experts say one reason for the steep decline is the rising housing market. Currently, the typical California home value is $717,000, which has increased over 20% in the past year and is second highest in the US next to Hawaii. California also has one of the highest costs of living, especially in cities such as Los Angeles and San Francisco. The state also has some of the highest gasoline prices in the country. The rising cost of living coupled with the record-breaking nationwide real estate prices have many Californians moving to southwest states.

Texas has perhaps seen the most increase in people moving to the state from California with a growth of almost 16% over the last decade. Many major companies such as Hewlett Packard and Tesla have moved their headquarters to the state and thus seen a crowd of people moving for the job opportunities that Texas now has. Some people have also chosen the state for the lower cost of living and the affordable housing market where you can get a larger house for less money. The median home price in Texas is half of what it is in California, making the state a desirable place for those wanting to purchase a home. Texas also has no income tax and lower taxes overall compared to California which has the most taxes at state and local levels than any other state in the country. Currently, the city of Houston has seen the highest number of California residents relocate followed by Dallas and Austin.

The lower cost of living and the more affordable housing market is another reason why states such as Arizona and Nevada have seen large inbounds of California residents moving to the area. These states have similar geography and climate to California, however offer a lower cost of living and lower taxes, making it an appealing place to move to. This combined with the fact that, due to the Covid-19 pandemic, many people are now able to work from home, makes moving out of the state a financially sound option for many.

People are choosing to leave California for a number of reasons, many pointing to an unrealistic housing market and extremely high cost of living. Many major corporations and Silicon Valley companies have left the state of California for those such as Texas, with a large number of people following for job opportunities, lower taxes, and a more affordable housing market. The past year has many people permanently working from home allowing them the option to decide where they want to settle down at. All this combined has shown a mass exodus of people leaving the state of California, and experts say the trend doesn’t show a sign of slowing down anytime soon.

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