California has always had a reputation for being expensive, but in recent years, the state has faced inflation and economic uncertainty. High-profile departures have been discussed previously, yet it’s now clear that people beyond just the wealthy are leaving.
More individuals are setting out to pursue what they believe to be the American Dream in places that seem more attainable.
A recent study from the University of California, Berkeley, revealed that many are finding financial relief after moving. In 2025, California saw a net loss of 216,000 residents.
The research highlighted that retirees, in particular, saved around $700 monthly on housing costs and were nearly 50% more likely to secure home ownership.
Between 2016 and 2025, the rate of affluent individuals exiting wealthy areas increased by 6.4%, matching the rate of middle-income residents who had previously been the main demographic to leave California.
According to the study, those relocating out of state are paying an average of $1,706 each month for housing, which is significantly lower than the $2,376 they were paying in California.
For newcomers to California, average housing expenses surged to $2,418 monthly, reflecting a 38% increase compared to earlier figures.
Seven years after making a move, former Californians are 48% more likely to own a home.
The report notes that even though incomes in these new areas are approximately 8% lower on average, the overall reduced cost of living more than compensates for that disparity.
Some individuals are even managing to keep their California paychecks while working remotely from their new locations.
Interestingly, the study indicates that while more people are leaving affluent regions, the rate of departures from low-income areas is on the decline.
“We have a significant affordability issue in the state,” said Evan White, executive director of the California Policy Institute. “It seems to have influenced migration choices. For the first time, we demonstrated that those who moved actually improved their economic situation, allowing for higher home ownership.”
Texas has emerged as the most popular relocation destination for former residents of California, followed by Arizona, Washington, and Nevada.
