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MORE OPTIONSAGREE Skip to main content * News * Investing Back Investing Getting Started * Best Investing Apps * Best Robo-advisors * Investing 101 * Types of Mutual Funds Investing in Stocks * Stocks * How to Invest in Stocks * How to Sell Stock * What is a Stock Split? 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UNLOCK EXCLUSIVE CONTENT * Discounts and special offers * Subscriber-only articles and interviews * Breaking news and trending topics Email Subscribe Join 200k+ subscribers By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy. Sign in * Sign in * Join THIS IS AN EXCLUSIVE STORY FROM OUR NEWSLETTER — SUBSCRIBE FOR MORE * Discounts and special offers * Subscriber-only articles and interviews * Breaking news and trending topics Join 200K subscribers Already a subscriber? Sign in. By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy. Not interested ? Continue reading * Home * Real Estate TRENDING 65,438people read this week ‘THE PRICES ARE JUST OUTRAGEOUS’: CALIFORNIANS ARE STILL DITCHING THE GOLDEN STATE BECAUSE OF ITS INSANELY HIGH LIVING COSTS — HERE’S WHERE THEY’RE HEADED Courtesy CBS 8 While we adhere to strict editorial guidelines, partners on this page may provide us earnings. Danielle Antosz Updated Nov 6, 2024 Danielle Antosz Updated Nov 6, 2024 Listen Andrew Rowley and his wife Lauren always imagined building a life in Southern California, where they were both born and raised. But when they began searching for a home, they were quickly discouraged by San Diego's sky-high housing prices. “We both have great jobs and wanted to stay in San Diego,” Rowley told CBS 8 reporters. “But the prices are just outrageous.” The average home price in the sunny city is $1.01 million according to data from Zillow. Even with a $700,000 budget, few options matched the Rowleys' vision of a home. Ultimately, the family decided to start a new adventure in Denver, Colorado, where they purchased a four-bedroom house with an expansive yard for less than $600,000. “All of our friends understood why we're doing it. We've had other friends leave the state. We've had other friends contemplating leaving the state and moving,” Lauren Rowley added. Their story is part of a larger migration trend, as many Californians are choosing to leave in search of more affordable housing and the overall cost of living. NEARLY 400,000 CALIFORNIANS LEFT BETWEEN 2021 AND 2022 The Rowleys are not alone in leaving the Golden State. The high cost of living and rising house prices have led thousands of residents to seek more affordable options. Through IRS data, financial tech company Smart Asset found that between 2021 and 2022, 399,138 people left California for states like Texas, Arizona, Nevada, Washington and Florida. Many of these transplants, including San Diego native Jessica Duarte, are moving not just for better housing prices but also to achieve overall financial stability. Duarte sold her one-bedroom condo in Rancho Bernardo and bought a new home in Alvaton, Kentucky. "I took all the profit from selling my condo and was able to buy this one right out, so I don't have a house payment," Duarte said. She now lives closer to her parents, who also relocated from California. But housing prices aren’t the only factor drawing Californians to other states. Duarte admitted that everything else is cheaper, too — including gas, groceries and utilities. While both Duarte and the Rowleys enjoy their new adventures outside of California, they are open to returning someday. “Of course, I feel a little homesick. I miss my California burritos and all that stuff, but I feel like I'm ready for some new experiences,” Andrew Rowley told reporters. INVEST IN REAL ESTATE WITHOUT THE HEADACHE OF BEING A LANDLORD Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch. The best part? You don’t have to be a millionaire and can start investing in minutes. Learn More WHERE ARE CALIFORNIANS HEADED? A SmartAsset study highlighted a significant trend of Californians relocating to more affordable places to live. From 2021 to 2022, 254,935 people moved into California, but 399,138 left, resulting in a net loss of over 143,000 residents. Among those who left, the top three destinations were Texas, Arizona, and Nevada. Texas attracted 54,136 households from California, with an average adjusted gross income (AGI) of $146,000 — likely due to Texas’s lack of state income tax and generally lower living costs. Arizona drew 32,864 households, with an average AGI of $100,399. Close by, Nevada became the third-most-popular destination, receiving 30,571 households. Nevada’s lack of state income tax also provides transplants the potential to save thousands of dollars each year. For wealthier Californians, states like Wyoming and Florida are particularly attractive due to their tax advantages. Wyoming drew 1,368 households from California with an average AGI of $284,133, while New Hampshire and Florida attracted high earners with AGIs of $204,605 and $187,025, respectively. This migration trend points to Californians seeking nearby states with lower living costs, warmer climates and reduced tax burdens to maintain or grow their financial resources. However, it’s worth noting that states without income taxes typically have higher sales taxes, which impact lower-income earners the most. While those with lower incomes often pay less in income taxes, they may spend a large portion of their income on goods that are subject to sales tax, making affordability a mixed equation. The Golden State's high costs continue to shape migration patterns. As affordability becomes a driving factor, many residents seeking financial stability may take the risk to build a life outside of California. Sponsored INVEST IN REAL ESTATE WITHOUT THE HEADACHE OF BEING A LANDLORD Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch. The best part? You don’t have to be a millionaire and can start investing in minutes. Danielle Antosz Freelance contributor Danielle Antosz Freelance contributor Danielle Antosz is a freelance contributor to Moneywise. EXPLORE THE LATEST ARTICLES INVEST IN REAL ESTATE The easy way to diversify with real estate investments. Em Norton Staff Writer CARDONE ON 'THE WORST INVESTMENT YOU'LL EVER MAKE' Moneywise NEARLY 75% OF RECENT HOMEBUYERS HAVE REGRETS Serah Louis KEVIN O’LEARY'S RULE FOR FIRST-TIME HOMEBUYERS Vishesh Raisinghani DISCLAIMER The content provided on Moneywise is information to help users become financially literate. 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