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Evan White<\/p>\nThe pandemic-era exodus of Californians to other states has eased, but the sometimes shocking cost of living continues to press thousands of residents to leave for less expensive locations, according to a new study by UC Berkeley\u2019s California Policy Lab.\u00a0\u00a0<\/p>\n
Residents who leave \u2014 often for neighboring states such as Oregon, Nevada and Arizona, or further destinations such as Texas and Florida \u2014 can find housing costs that are nearly half of what they would pay in California, the report found. And, it says, that disparity also appears to be discouraging residents of other states from moving to California.<\/p>\n
Evan White<\/p>\n
In all, California in 2025 experienced a net loss of about 150,000 people. That\u2019s less than 1% of its 39 million residents, but if that\u2019s the \u201cnew normal,\u201d the report says, the implications \u201ccould be severe.\u201d Fewer people could mean a smaller tax base to build roads, fight fires and ensure public safety. California is also expected to lose clout in Congress as several of its congressional seats will be reallocated to states where the population is growing.<\/p>\n
\u201cThere are tremendous problems with affordability in the state,\u201d said Evan White<\/a>, executive director of the California Policy Lab<\/a>. \u201cWe find that is probably impacting people\u2019s relocation decisions. \u2026 What we show for the first time is that people who leave are, in fact, improving their financial positions, and are able to own homes in greater numbers after the move.\u201d<\/p>\n The report \u2014 \u201cPriced Out: Relocation Amidst California\u2019s Affordability Crisis\u201d <\/a>\u2014 was co-authored by White and Policy Lab researcher Brett Fischer.<\/a> It was released Tuesday, March 31.<\/p>\n The report is based on anonymous, individual-level data drawn from a national credit bureau to observe where Californians moved between 2016 and 2025. The data also allowed Berkeley researchers to assess indicators of the movers\u2019 financial well-being before and after their moves.<\/p>\n Through this innovative approach, the report presents a detailed look at the economic dynamics that many Californians feel every day and that are driving some to pull up stakes and leave for a new state. While the California Dream remains alive and strong \u2014 despite reports in some quarters of the news media \u2014 White suggested that elected officials and policymakers clearly have challenges to solve.\u00a0<\/p>\n Births, deaths \u2014 and housing costs<\/p>\n The population of the Golden State increased consistently over about 60 years starting in the mid-20th century. Today, one in nine Americans live in California. Its population is larger than the least-populous 22 states combined. If it were a country, California would have the world\u2019s fourth-biggest economy.<\/p>\n What we show for the first time is that people who leave are, in fact, improving their financial positions, and are able to own homes in greater numbers after the move.<\/p>\n Evan White, director, California Policy Lab<\/p>\n Over the last two decades, however, births have fallen, deaths have risen and fewer immigrants have come from foreign countries. During the COVID-19 pandemic, exits rose<\/a> and California lost many more residents to other states, while migration from elsewhere in the U.S. plunged.<\/p>\n While the number of exits has nearly returned to pre-pandemic levels, the new report found, economic dynamics put California in a class almost by itself, with housing costs even for the least expensive California communities higher than most other areas in the U.S. The report cites other data showing that groceries are 11% more expensive here, gas is 40% more expensive and utilities are 61% more expensive.<\/p>\n According to the report, those high costs are exerting a powerful influence on California migration:<\/p>\n Among those who moved out-of-state, monthly housing costs in their new neighborhoods averaged $1,706 \u2014 about $670 less than the average $2,376 cost in their former California neighborhoods. Among those who moved into California, average monthly housing expenses in their new neighborhoods jumped to $2,418, up 38% from the average housing costs in their old neighborhoods.\u00a0<\/p>\n After seven years in their new states, former Californians are 48% more likely to own a home. Citing another study, the California Policy Lab reports that in 2012, \u201cthe state\u2019s median household income was roughly sufficient to qualify for a mortgage on a mid-tier home, but it now falls substantially short of the level needed to qualify for even a bottom-tier home.\u201d<\/p>\n While incomes in their new out-of-state neighborhoods are about 8% lower on average, the report says, the \u201cdifference is far outweighed by the lower costs of living.\u201d At least some of the movers are able to maintain their California incomes as they work remotely.<\/p>\n Perhaps surprisingly, people who are leaving California increasingly come from higher-income neighborhoods, while the share of those from lower-income neighborhoods has declined.<\/p>\n In raw numbers, Texas is the most popular relocation destination, followed by Arizona, Washington and Nevada. But White says per capita measures better reflect migration popularity. On that basis, Nevada is the leader: 226 Californians per 10,000 residents moved to the state each year between 2016 and 2025; 146 Nevadans per 10,000 relocated to California.<\/p>\n A reflection of economic anxiety?<\/p>\n White acknowledged that other factors could be driving the migration patterns. Parts of California are regularly devastated by wildfires and storms, and there\u2019s the constant risk of earthquakes and drought. Some people are turned off by the state\u2019s visible homeless population or because California is dominated by Democrats and liberal political interests.<\/p>\n But what emerges from the 21-page report is a sense that economic insecurity is pervasive among Californians. Moving to a new state is expensive, White said, and the decision to leave is sometimes \u201ca move of last resort\u201d borne out of economic anxiety.<\/p>\n![\"informal](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/Brett-Fischer-CPL-headshot_edit-797x1024.jpg\")
Brett Fischer<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/CPL_Priced_Out_cover_large-791x1024.jpg\")
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