California Residents Seeking Affordable Housing Options
Many Californians moving out of the state are discovering significant savings on housing and a smoother path to becoming homeowners, despite their ongoing concerns about affordability.
A recent study by the California Policy Lab at the University of California, Berkeley, analyzed anonymous data tracking the same households from 2016 to 2025. The results showed that those relocating from California were more inclined to settle in areas with lower costs and, interestingly, were finding homeownership more achievable.
On average, individuals leaving California reported living in regions where housing costs were about $672 less each month. Specifically, their new locales averaged $1,705 compared to California’s $2,376. This analysis accounted for various housing costs, including mortgage or rent payments, utilities, property taxes, and overall monthly expenses.
For renters who moved out, their monthly rent fell by approximately 30%, equating to about $631 in savings. Homeowners found the median home price to be around $396,000, which is 48% lower than what they were accustomed to in California.
There’s a growing trend here, with 60% of those relocating achieving homeownership, a slight rise from 53% in California itself. On the flip side, individuals who remained within California experienced a slight uptick in average housing costs, which were around $2,263 monthly, increasing to $2,277 for new homes.
Those moving into California faced notable increases in their housing expenses, jumping from an average of $1,754 in their previous locations to about $2,418 in their new California residences.
After seven years, nearly 48% of those who left the state were more likely to own homes than they had been prior to their California residency. In contrast, just 27% of individuals who moved to California experienced similar benefits in homeownership within seven years.
Evan White, executive director of the California Policy Lab and co-author of the study, noted, “The cost of the California dream keeps climbing, prompting many families to seek more affordable living conditions.” He highlighted that prices near their new destinations are often halved, significantly increasing their chances of becoming homeowners within just a few years.
Additionally, the study examined both net inflows and outflows of residents from California. Nevada topped the list of states gaining the most residents from California, averaging a net increase of 81 individuals per 10,000 people each year between 2016 and 2025. Following Nevada, Oregon, Idaho, and Arizona also recorded considerable net inflows.
In contrast, states like Texas, Tennessee, and Florida saw relatively lower numbers of new residents coming from California, with just 11, 13, and 4 individuals per 10,000, respectively.
