So much for “Go West, young man.” In 2023, California earned the dubious distinction of being the top state Americans chose to leave. The exodus is driven by a combination of high living costs, oppressive taxes, worsening crime, and deteriorating quality of life.
According to PODS Moving and Storage, California saw a net loss of 91,000 residents last year. This mass departure isn’t limited to a specific area; seven California cities made PODS’ top 20 move-out list for 2023, with four—Los Angeles, San Francisco, San Diego, and Stockton-Modesto—landing in the top 10. This points to a statewide phenomenon.
Terry Gilliam, who lived in the San Francisco Bay Area for 35 years before fleeing to Florida in 2021, shared his reasons for leaving. “It was the cost of living and the politics, the traffic, homelessness, crime—everything has gotten worse and worse in California, and the solutions they proposed only made things worse,” he revealed. Gilliam, now settled in Florida, says he’s “much happier,” despite Florida also facing some challenges.
California Leads the Pack in Out-Migration
The U.S. Census Bureau reported that California’s population fell below 39 million in 2023, the lowest count since 2015. The primary drivers of this trend, according to PODS, are high sales, income, and property taxes, combined with a cost of living that is nearly 40% above the national average, as per the Council for Community and Economic Research.
Gilliam, who manages two Facebook groups—“Leaving California” and “Life after California”—to help others transition out of the state, pinpointed the housing market as a major tipping point. California’s average home value stands at $786,938, a staggering $426,267 above the national average, with home values increasing by 7.2% over the past year. Those unable to purchase homes face soaring rents; as of May 2024, the average rent for a two-bedroom apartment in California exceeds $2,800, with prices in cities like San Francisco and Los Angeles surpassing $3,000.
Gilliam attributed these costs to a significant housing shortage, which he claims has a domino effect on Californians’ finances. “There’s just a huge shortage of housing, and it’s creating a domino effect that tumbles deep into people’s bank accounts,” he said.
Sunshine State Faces Competition
States like Texas, Florida, Arizona, Tennessee, and Nevada are popular destinations for Californians seeking lower taxes and a reduced cost of living. Gilliam chose Florida, appreciating its “law and order” in contrast to California’s increasing crime and homelessness rates—factors also highlighted by PODS as contributors to California’s out-migration.
However, even Florida is seeing increased competition. While it remains a top choice, other Southern Appalachian states like Georgia, Tennessee, North Carolina, Alabama, and South Carolina are attracting more new residents.
Challenges in the Sunshine State
Florida, despite its popularity, has its issues. The state experienced nearly 4% inflation as of April 2023, one of the highest rates in the nation, according to Moody’s Analytics. A major pain point is the skyrocketing cost of home insurance, driven by frequent severe weather events. Insurify reports that Florida homeowners paid an average annual home insurance rate of $10,996 in 2023, with predictions for 2024 suggesting a rise to $11,759. These costs add to high mortgage rates, property taxes, and other essential living expenses.
Despite these challenges, Florida continues to enjoy positive net migration. Over the past decade, the state’s inbound migration grew at about 3.7%, compared to outbound migration’s slower pace of 1.5%, according to the Florida Chamber of Commerce.
In conclusion, while California’s allure appears to be fading, states like Florida continue to attract those seeking a more affordable and secure lifestyle, even as they grapple with their own set of challenges. As the trend of interstate migration continues, it will be interesting to see how states adapt to retain and attract residents in the face of economic and social pressures.
