Californians Seeking Better Lives Elsewhere
Many Californians, particularly those facing economic hardships, have decided to move to other states in search of better opportunities. A recent study indicates that these individuals are finding improvements in their quality of life after relocating.
Since the pandemic, there’s been a notable uptick—about 19%—in residents leaving higher-income areas in California, according to the University of California Policy Institute.
Although these migrant households aren’t destitute, they often struggle financially compared to wealthier neighbors.
Evan White, the institute’s executive director, commented, “Over the past decade, the affordability gap has really widened. That makes it very difficult for even people who earn enough money to get by.”
Take Matt Ingles, for instance. He moved with his wife and two kids from Los Angeles to Dripping Springs, Texas, in 2021 after eight years on the West Coast. Despite not being poor, the high costs in California created a sense of inadequacy.
“Living in California, I noticed the stark divide between the rich and the poor,” Ingles shared. “In cities like Los Angeles and San Francisco, there are numerous wealthy individuals I encounter regularly. Even if you’re doing alright financially, you might feel less when surrounded by those who are thriving.”
Ingles pointed out that the cost of living in Texas is much lower. Everything, from gas to groceries, is more affordable. He noted that because of Texas public schools, his family saves about $60,000 to $80,000 in education costs, a stark contrast to sending their kids to private schools in California.
“In Texas, you definitely get better value for your money,” he mentioned. “My quality of life has seen a significant boost. It’s not just about the economics.”
Interestingly, those relocating from California often possess lower credit scores and have high debt—whether it’s from car loans or student loans—making home ownership less accessible. However, after moving, they experienced improvements in financial standing, with an 11% higher likelihood of owning a home in retirement.
By comparison, those who moved to California saw only a 6% increase in home ownership within seven years. In 2025, over 150,000 more people exited California than moved in.
Ingles, who works in real estate, understands this trend well. “Affordability heavily influences the housing market. I’ve helped many clients from California, and they’re often surprised by what they can afford here,” he explained.
The overarching narrative suggests that California is increasingly becoming a haven for the wealthy. High rents and escalating housing costs continuously squeeze people’s finances. A recent study revealed that the typical household in California has around 35% less disposable income than the national average, primarily due to hefty taxes and living expenses.
Despite ongoing efforts by state Democrats to build more housing, results remain limited. Hans Johnson from the Public Policy Institute of California commented on the situation, saying that new housing units have not yet translated into meaningful relief for those grappling with high costs.
According to the California Institute for Policy Studies, the continuing trend of outmigration could have severe ramifications. “If this keeps going, the impact on California’s tax base and political influence could be significant,” the report warned, noting that California could potentially lose several congressional seats after the 2030 Census, following the loss of one seat in 2021.
