The Growing Trend of California Departures

California has long struggled with a high cost of living, exacerbated in recent years by economic uncertainty and inflation. A recent study highlights a significant trend: residents are increasingly choosing to leave the state in search of better financial stability.

In 2025 alone, California experienced a net loss of 216,000 residents. Data indicates that those who relocated saved an average of $700 per month on housing costs and were nearly 50% more likely to achieve the goal of homeownership.

Financial Relief and Housing Costs

Research from Berkeley provides a clear breakdown of the financial impact of these moves. Individuals who left California paid an average of $1,706 per month for housing, significantly lower than the $2,376 they previously paid within the state.

Conversely, those moving into California faced a 38% increase in housing costs, with average monthly payments rising to $2,418. While those who left the state saw their average incomes drop by approximately 8%, the substantial reduction in living expenses more than offset this difference.

Shifting Demographics of Relocation

The study also notes a shift in the demographics of those leaving the state. Between 2016 and 2025, departures among high-income earners from affluent neighborhoods increased by 6.4%, effectively aligning with the exit rates of middle-income residents.

Evan White, executive director of the California Policy Lab, noted the severity of the situation. "There are tremendous problems with affordability in the state," White stated. "We find that is probably impacting people’s relocation decisions. 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."