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Why Are People Leaving California — and Where Are They Going?
Moving Trends
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?
Planning a move out of California? Start by getting a quote from PODS. |
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 one-fifth of our national workforce is working remotely. 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.
During the pandemic, record numbers of people packed up and moved to other states, and those trends are still holding strong. California saw more people pack up and move out than any other state between 2023 and 2024, according to data from the Census Bureau. In just a year, the Golden State said goodbye to 239,575 residents. A recent survey found that almost 60 percent of Californians have considered moving out of the state. It’s a popular locale with tons of perks, so why are people leaving California?
While it’s easy to say people are leaving California in droves due to changing working conditions, the truth is, California has been struggling with resident retention for nearly 25 years. Once the golden child for a burgeoning population, California has experienced its slowest rates of growth ever recorded since 2000.
Why People Are Leaving California
Why are people leaving 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 came in at the number two spot, falling right behind Hawaii. There are other reasons why Californians are fleeing the state, though.An Expensive Housing Market
According to Zillow, the average home value in California is about $773,300. Even though prices in some areas, like SoCal, appear to be stabilizing or even dropping, home values in California remain high overall. As a result, many people are leaving California to realize their dreams of homeownership.
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.
Natural Disasters/Wildfires
Anyone paying close attention to California news may be asking, “Are people leaving California because of the wildfires and other extreme acts of nature?” While this isn’t the top reason why people are leaving California, many believe recent events may cause people to move out of the state in the future.
In January 2025, Los Angeles faced devastating wildfires, notably the Palisades and Eaton fires, which burned around 35,000 square miles and destroyed approximately 7,000 homes. The state has seen thousands of fires annually, with significant increases in acreage burned in recent decades. Despite recent wetter seasons, increased invasive grass and weeds pose a larger future fire risk.
Businesses Are Leaving California
We often think about people leaving California, but what about corporations? It may not surprise you to hear that some businesses are also leaving California. Oracle and other notable tech companies are relocating to more tax-friendly states — primarily Texas. In fact, 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.
There you have it. Progressively higher living and housing costs — along with an increase in natural disasters and decrease in employers — have contributed to many people leaving California for more affordable cities and states. 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 are the most popular for people leaving California. A few things these locales have in common? Large green spaces, nice weather, good public transportation, and big-city amenities — all with a more affordable cost of living.
Q: What is the #1 state people are moving out of? A: According to World Population Review, New Jersey is the top state people moved out of in 2024, followed by Illinois, New York, Connecticut, and California. |
Top Destination Cities for People Leaving California
People leaving California are packing up and heading for the stunning scenery of the Pacific Northwest and warm weather of the South. Cities like Dallas, Seattle, Boise, Nashville, and Phoenix top the list of the most popular cities for people moving out of California.
Here’s a closer look at the stats and overall appeal of these top cities.
Dallas, Texas, is the top spot for people leaving California, thanks in part to its lower cost of living, affordable real estate, and lack of state income tax.
1. Dallas, TX
- Cost of living: 100.2 (21% lower than Sacramento)
- Median household income: $68,000 (19% lower than Sacramento)
- Average home value: $305,600 (36% lower than Sacramento)
- Average rent (one-bedroom): $1,575 (17% lower than Sacramento)
It’s only taken a few years, but Dallas has usurped Austin as the top spot for people moving from California to Texas. The median household income in Dallas is 19 percent lower than you’ll find in Sacramento, while the overall cost of living is 21 percent lower in Dallas. Housing costs are also significantly lower in Dallas, where you’ll pay 17 percent less for a one-bedroom rental, and home values are 36 percent less than in Sacramento. All this adds up to more bang for your buck and an adjusted quality of life.
Dallas locals have access to several professional sports teams and a rich nightlife that includes an impressive variety of bars, restaurants, live music, culture, and art. With a population of around 1.3 million, it’s one of the biggest cities in Texas and, when paired with its sister city Fort Worth, is the fourth-largest metro area in the country. The Dallas-Fort Worth International Airport keeps the city well connected, as well. And to top it all off, relocators will also appreciate the lack of state income tax in Texas — one of the big reasons there are people leaving California and booking it to the Lone Star State.
Considering moving out of California and into Dallas? Check out the pros and cons of living in Dallas before you make your move! |
2. Seattle, WA
- Cost of living: 158.1 (36% lower than San Francisco)
- Median household income: $122,000 (14% lower than San Francisco)
- Average home value: $851,500 (31% lower than San Francisco)
- Average rent (one-bedroom): $2,300 (30% lower than San Francisco)
Moving from San Francisco to Seattle will stretch your dollar further, especially when it comes to housing and health costs. Although the median income is only about $20,000 less in Seattle, you’ll save the difference in rental costs, while also being able to cut your general cost of living expenses down by more than 30%. Seattle may be one of the more expensive cities people flock to in the Pacific Northwest, but for those coming from the likes of San Francisco, it’ll feel much more affordable. Speaking of affordable, the PODS Blog has some additional tips on how to make the most of your money in Seattle.
Seattle and San Francisco are somewhat similar when it comes to weather, with Seattle having more rain and less variation between summer and winter temperatures. And, like San Fran, Seattle is a tech city full of culture, live music, and a relaxed but driven mindset. Residents here have their pick of amenities from national landmarks like the Space Needle (with stellar views over the city), good transportation, farmers’ markets and food stalls, gorgeous outdoor parks, and a good sense of community. Seattle is also a super bike-friendly city with great public transit — full of young, progressive, and artistic residents — much like San Francisco.
Moving out of California doesn’t have to mean sacrificing gorgeous views – just look at the natural beauty of Boise, Idaho.
3. Boise, ID
- Cost of living: 119.6 (23% lower than Santa Barbara)
- Median household income: $81,300 (20% lower than Santa Barbara)
- Average home value: $483,500 (72% lower than Santa Barbara)
- Average rent (one-bedroom): $1,650 (43% lower than Santa Barbara)
Yes, Santa Barbara is one of the most beautiful places to live in California, but the high cost of living is partly to blame for people leaving California. The cost of living in Boise, however, is nearly 25 percent lower than in Santa Barbara — but it’s the steep dip in housing costs that are the real catch. The average Santa Barbara home is priced at just under $1.8M, while Boise’s average is just over $483,000. Relocators from California will also appreciate Boise’s lower tax rate, including the 6 percent sales tax.
Outdoor enthusiasts are flocking to Boise for its small-town community feel and gorgeous scenery (it basically feels like you’re living inside of a park). And while there are plenty of bars and restaurants to enjoy, the biggest draw is the city’s access to wild nature, miles and miles of maintained trails, and all-season outdoor activities. People are catching on to everything Boise has to offer, including its low cost of living and high quality of life.
Q: What age group is leaving California? A: According to Business Insider, most of the people leaving California are millennials or Gen Zers. |
4. Nashville, TN
- Cost of living: 104.7 (32% lower than San Diego)
- Median household income: $75,200 (28% lower than San Diego)
- Average home value: $426,700 (58% lower than San Diego)
- Average rent (one-bedroom): $1,775 (41% lower than San Diego)
Residents living in Nashville may earn about $29,000 less a year than those in San Diego, but they’ll also pay a lot less for things like groceries, transportation, and housing. In fact, average home values in Nashville are almost $580,000 less than in San Diego (which means you’d have to work roughly 20 years more in San Diego to make up for the housing price difference). Renting in Music City is also cheaper at about $1,200 less a month, while the overall cost of living is 32 percent lower, making that $29,000 income difference even less of an issue.
Both Nashville and San Diego have a median age of around 34, making them both young, energetic locales. And those new to Nashville will appreciate the lively bar and music scene, delicious takes on Southern cuisine, and mostly moderate weather. Live music is available day and night, parks and beautiful green spaces are abundant, and there is a thriving arts scene.
Phoenix has considerably lower housing prices and living costs than California, so it’s perfect for those who want year-round sun without sky-high prices.
5. Phoenix, AZ
- Cost of living: 113 (51% lower than San Jose)
- Median household income: $65,000 (54% lower than San Jose)
- Average home value: $413,500 (71% lower than San Jose)
- Average rent (one-bedroom): $1,500 (50% lower than San Jose)
There’s something grand about Phoenix, Arizona, and we’re not just talking about its most famous natural landmark. It has considerably lower housing prices and living costs than California, so it’s perfect for those who want year-round sun without sky-high prices. While some may think of Phoenix as a retirement paradise only, the truth is actually quite different. Phoenix has strong school districts, plenty of job opportunities, and tons of luscious golf courses, making it attractive to young professionals, families, and — yes — retirees, too. Additionally, because Arizona has lower taxes than California and no state tax on Social Security benefits, it’s a great locale for those who want to make the most of their income.
Sure, San Jose may be known for its tech empires (hello, Apple and Google headquarters), but if you’re in this industry, don’t discount Phoenix. Phoenix has an emerging tech presence itself, with both new startups and established giants making their mark. In fact, since 2019, nearly 3,000 new tech jobs have been created statewide.
Q: Are Californians moving abroad? A: Recent data suggests that an increasing number of Californians are considering moving abroad compared to five years ago. However, most people leaving California are relocating to other states rather than other countries. |
Top Destination States for People Leaving California
Here’s a closer look at the top five states people are moving to from California.
Spots like Austin, Texas, have the cultural appeal of California without the incredibly high cost of living.
1. Texas
- Cost of living: 94.2 (37% lower than California)
- Median household income: $76,300 (21% lower than California)
- Average home value: $300,000 (61% lower than California)
- Average rent (one-bedroom): $1,875 (13% lower than California)
For years, the great big state of Texas has been wooing residents from California, and now it’s finally taken the lead as the top state for California relocations. For many finance-strained Californians, cities like Austin, Dallas, San Antonio, and Houston offer sunny weather, job opportunities, and culture, which is likely why so many people are fleeing California for these hotspots.
Texas also boasts a cost of living that is significantly lower than California’s. The median household income in the Lone Star State may be around $20,000 less than in California, but the substantial drop in home prices, rentals, and everyday expenses — not to mention the fact that there’s no state income tax in Texas — more than make up for the median income difference.
Q: What state are Californians moving to the most? A: There are more people leaving California for Texas than any other state. |
2. Florida
- Cost of living: 103.1 (31% lower than California)
- Median household income: $71,700 (26% lower than California)
- Average home value: $386,900 (50% lower than California)
- Average rent (one-bedroom): $1,775 (17% lower than California)
Florida may get a lot of flack, but numbers don’t lie. The Sunshine State has been a go-to spot for relocations, including people leaving California. Floridians earn an average of 26 percent less a year than Californians, but the overall cost of living in Florida is also much lower. Another reason why people are leaving California for Florida is because Florida’s real estate market is booming. Even though values have almost doubled in the past decade, the average home value is still close to 50 percent less than what you’d find in California.
Florida offers up familiar sunny weather with mild winters and hundreds of miles of sandy coastline, so it’s easy to see why this Southern state has attracted so many people from California. Flip flops, t-shirts, and sunglasses are wardrobe mainstays in both states, so you won’t even have to shop for new clothes (unless you want to)!
Moving to Florida from California? Here’s everything you need to know about how to make the move and what to expect along the way. |
Enjoy being on the West Coast but want your income to stretch farther? Move north to Washington State.
3. Washington
- Cost of living: 121.9 (19% lower than California)
- Median household income: $95,000 (1% lower than California)
- Average home value: $589,200 (24% lower than California)
- Average rent (one-bedroom): $1,625 (24% lower than California)
Just a scenic drive up the coast and Californians can cross the border into their new home state of Washington. While the weather here isn’t quite as sun-soaked as Southern Californians may be used to, relocators coming from Central and Northern California may find it quite familiar. Cities like Seattle draw in transplants looking for bustling city life surrounded by nature and mountains. (Sounds a lot like California, yeah?) The median household income in Washington is only slightly less than in California, so you’ll see the most difference in how far it’ll stretch. Housing is a key area of relief, as average home values are around 24 percent less than in California.
The moody state of Washington is likely to appeal most to Californians who appreciate the outdoors and are pining for a place with great public transportation. Washington also has a relatively low median age, just like California. Seattle is the most bopping city in the state and where you’ll find the highest population and your standard big-city amenities, such as noteworthy museums, performance venues, and cultural landmarks.
Q: Why are so many people leaving the state of California? A: Many people are leaving the state of California because of the high prices, although this is not the only reason. Home prices are high in the state, but job opportunities and salaries aren’t matching the big price tags, making the dream of homeownership unattainable for many Californians. |
4. Tennessee
- Cost of living: 89.9 (40% lower than California)
- Median household income: $67,100 (30% lower than California)
- Average home value: $316,300 (59% lower than California)
- Average rent (one-bedroom): $1,225 (43% lower than California)
The median household income in Tennessee may be $29,000 shy of what it is in California, but the change in cost of living in this Southern state will have you feeling rich — particularly if you’re planning to work remotely with your California-based job. Tennessee’s cost of living is 10 percent lower than the national average and a whopping 40 percent lower than California’s. Average home values are almost $460,000 less in Tennessee, while rent is around $925 cheaper per month for a one-bedroom. There’s also no state income tax here, a major boon for Californians.
Tennessee weather is often warm and winters are mild, which can be a particular plus for Californians used to the sun or those who are craving more of it. There’s also a ton of tasty food, loads of southern hospitality, and views of the famous Smoky Mountains. Although Tennessee is a landlocked state, residents still have access to waterfronts via the state’s variety of lakes and rivers. There’s also no shortage of music festivals and fairs, outdoor activities, and whiskey (or moonshine if you want to try something new). Did we mention the out-of-this-world barbecue?
Vibrant nightlife, a mild climate, and a state full of natural beauty — these are just a few reasons why people are moving out of California and into Nevada.
5. Nevada
- Cost of living: 109.7 (27% lower than California)
- Median household income: $75,600 (21% lower than California)
- Average home value: $440,500 (43% lower than California)
- Average rent (one-bedroom): $2,050 (5% lower than California)
Vibrant nightlife, a mild climate, and a state full of natural beauty — these are just a few reasons why Californians are leaving their state and heading just slightly east to Nevada. Not only are home values 43 percent lower in Nevada, there’s a significantly lower cost of living, which makes up for the fact that average incomes are around 21 percent lower. Plus, did we mention that there’s no state income tax and low property taxes?
Another reason why people are leaving California for Nevada has to do with employment opportunities, especially in the entertainment and technology sectors. Nevada has a business-friendly environment with fewer regulations and more affordable real estate.
People Leaving California Can Use PODS for a Flexible Move
Why are people leaving California? There are clearly lots of reasons – from cost of living and job opportunities to housing options and weather. If you’re one of the many people leaving California in 2025, remember that PODS makes moving out of California simpler with a variety of moving and storage options, built-in storage, and flexible scheduling. And if you’re moving out of a major metro, like Los Angeles or San Francisco, we’ve got you covered with PODS City Service — the flexible way to move out of a big city.
Alex Keight is a writer who has lived — and moved — all over the country and the world. She is an expert at packing, whether it’s for a long-distance move or a short weekend trip. When she’s not writing or on the move, Alex spends her time giving her cat booty pats, cooking up dishes in the kitchen, and buying way more books than she knows she’ll ever actually get to reading.
Editor’s note: Average rent prices were obtained from RentCafe and Zillow; average home values were obtained from Zillow. For ease of reading, monthly rental prices were rounded to the nearest $25, while home values and median household incomes were rounded to the nearest $100.
(Source for image featured at top: Leah Kelley via Pexels)
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