Californians are abandoning the Golden State, chiefly because of high housing costs and finding better luck at becoming homeowners elsewhere, a new study found.
But they are not mostly fleeing to Texas, despite memes and advertisements touting it as an alternative to California.
The study, released March 30 by the California Policy Lab at the University of California in Berkeley, anonymously tracked the same households from 2016 to 2025.
“The findings suggest that affordability plays a major role in Californians’ relocation decisions,” the study said. “Californians who leave move to much more affordable areas and see large increases in homeownership, on average.”
While many news stories focus on those leaving California, the state also has a problem with new arrivals.
“Forty-two states now send fewer people to California than they did 10 years ago,” the study said, meaning the number of people moving to the state can’t keep up with the departures.
Here’s what to know:
California showed a net gain of people relocating to the state from Washington, D.C., Massachusetts and New York, the study found. Getty Images Where are Californians moving?
The top beneficiaries of Californians seeking their fortunes elsewhere are Nevada, Hawaii, Oregon, Arizona, Idaho and Washington, the study found.
California receives fewer new arrivals from those states than residents departing for them.
“Proximity reigns,” the study said.
Nevada welcomed an average of 226 Californians per 10,000 residents each year between 2016 and 2025. In that time, an average of 146 Nevadans per 10,000 moved to California each year. On net, California sent 81 people per 10,000 annually to Nevada
Other states benefiting from the California exodus include Colorado, Montana, Utah, Alaska, Wyoming, New Mexico, Texas, Virginia, Oklahoma, South Dakota, Tennessee and Florida.
But California showed a net gain of people relocating to the state from Washington, D.C., Massachusetts and New York, the study found.
Why are Californians moving?
Affordability, particularly for housing, drove most people to pull up stakes in California, the study found.
Along with more expensive housing, residents in most of California also face higher costs for groceries, gas and utilities.
“Higher housing prices may in part reflect California’s desirability,” the study said, citing the Golden State’s natural beauty, mild climate, world-renowned universities, and economic opportunity.
And higher salaries in California make it possible for many to afford those higher costs.
“But the state’s affordability issues have deepened in recent years, and residents are feeling the pinch,” the study said.
Median salaries in California easily covered a monthly mortgage payment in 2012, but now fall short of the level needed to qualify for even a bottom-tier home
Affordability, particularly for housing, drove most people to pull up stakes in California, the study found. Getty Images Who is leaving California?
While many people fleeing California are doing so because of the high cost of housing, most are departing from higher-income communities, the study found.
In fact, the number of lower-income Californians moving elsewhere has declined.
But the share of Californians leaving the state from higher-income communities increased 6.4% between the pre-pandemic and post-pandemic periods.
More people from higher-income neighborhoods also are moving to other places within California, the study found.
But those who leave higher-income communities, whether out-of-state or within California, tend to be less well-off than their neighbors, with lower credit scores and more debt.
The average person leaving California relocates to a community where monthly housing costs are $672 lower than in the community they left, the study found.
This holds true for both renters and owners. The trade-off, however, is that salaries in their new home also are likely to be lower.
Does moving pay off for ex-Californians?
People who leave California are more likely to become homeowners than those who remain, the study found.
After seven years, they are 11% more likely to own a home, according to the study. But those who moved to California from elsewhere are only 6% more likely to become homeowners within seven years.
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This story was originally published April 1, 2026 at 12:49 PM.
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Don Sweeney has been a newspaper reporter and editor in California for more than 35 years. He is a service reporter based at The Sacramento Bee.