No surprise that moving out of California saves one money.
New data from UC Berkeley strongly suggest that for people of limited incomes who moved out of the Golden State, taking part in the California exodus can bring dramatically improved financial conditions…The California Policy Lab research covered people who left or arrived in California from 2016 to 2025 — millions in total…
Before leaving California, those who left paid on average $2,376 in monthly housing costs. After relocating to another state, former Californians spent just $1,705 per month, a drop of $671 [28%]…We find that Californians who left the state were much more likely to own a home a few years later.
The other half of the equation is the number of people who move to California. That number is also down from most states.
Despite the media’s consistent focus on exits, a main driver of recent population trends was declining entrances to California . Forty-two states now send fewer people to California than they did ten years ago…
Back in the late 1980s I knew a fellow who had a sweet deal renting software to Microsoft. As soon as Microsoft canceled the deal he sold his mansion in California, moved to Arizona, and retired to play golf.
One of my nephews moved from CA to OR. He was looking at NC, TN, and TX but family won out. His wife’s family is all in OR. Long story short, despite a pay cut, bought twice the house with twice the land at half the price. Many but not all things are cheaper (though not as cheap as TN/TX). Has the lifestyle he wants of fishing/boating/gentleman farming.
In 2003, when DH wanted to move “anyplace Denver or west,” I immediately said, “California is out for starters.” I had read that 1/3 of CA’s population received money from the state government, either as employees or in benefits or both. Clearly someone had to be taxed to pay for that.
I also said that the North (MT, ID, etc.) was too cold in winter and the Southwest was too dry to garden. The PNW was rainy all the time.
If DH could find a place that doesn’t have cold winters, isn’t a desert and didn’t rain all the time I would move there. He found Sequim, a tiny town tucked into the rain shadow of the Olympic Mountains, which has the most stable cool (but not cold - Zone 8) climate in the U.S. The summers are cool and clear – if the temperature rises above 80 degrees in summer everyone in town complains about the heat. We have irrigation water for our garden.
That was more 45 years ago. I bet he wishes he had his mansion in California now with Arizona temperatures in the 100s for 4 months of the year during daylight hours.
Phoenix generally has hotter summers, with average highs reaching around 105°F (40°C) in July.
Los Angeles experiences milder summers, with average highs around 85°F (29°C) in July.
Winter temperatures in Phoenix can drop to lows of about 40°F (4°C) in January.
Los Angeles has warmer winter lows, averaging around 48°F (9°C) in January.
Temperature variation is greater in Phoenix, leading to more extreme highs and lows throughout the year.
Los Angeles enjoys a more stable climate with less temperature fluctuation between seasons.
The average household leaving California is not poor in absolute terms, but they are relatively worse off than those around them. Colloquially, they show signs of not being able to “keep up with the Joneses.”
Compared to their neighbors, movers show several indications of worse financial health. For example, exiters had credit scores that were 17 points lower than people from the same neighborhood who did not move (Table 1). Exiters also owe $5,500 more (twice as much) in student debt than their neighbors and have 16% (or 3.6 percentage points) higher rates of credit card utilization, which suggests that their credit cards are more “maxed out.” Rates of homeownership were also 33% lower (or -11 percentage points) for exiters as compared to their neighbors. All these signals are consistent with the idea that exiters desire a quality of life that they cannot achieve in their old neighborhood.
Florida TaxWatch report: Nearly half of residents consider leaving state over rising costs
The cost of living in Florida continues to rise, with nearly half of residents saying they have considered leaving the state due to affordability concerns, according to a new report from Florida TaxWatch. The report, Cost of Living in Florida: A Mid-Decade Check-In, highlights increasing expenses across ad valorem taxes, rent prices, childcare costs, groceries, and other everyday necessities. Florida TaxWatch President and CEO Jeff Kottkamp said the findings show growing concern among residents struggling to keep up with rising costs. More from Florida Trend and Florida’s Voice.
For the record, one party has been in super-control of Florida’s Governor post and both houses of the Legislature since the mid 90’s. That doesn’t mean anything, apparently, as they keep reelecting them.
