Over the past few years more and more people have left the state of California. This so-called “west coast exodus” was sparked by various causes like environmental regulations, high taxes, and social policies. After COVID and lockdowns kept everyone grounded, the rate at which Californians were leaving California slowed. More recently, however, the exodus has continued. Indeed, in 2021 alone, over 360,000 people left California for other states like Texas, Arizona, and Washington.
Many Californians are even heading so far south they’re in Mexico: seeking a more relaxed and affordable lifestyle.
Living in California has even become impossible for some, with the median cost of a home sitting at around $797,470, leaving only 25% of the state’s households in a position to afford them. On top of all of these factors, the rise in remote work due to the Covid-19 pandemic has provided the flexibility for those in the state to move out, accelerating the trend. Looking forward, the trend is likely to continue (especially with the way gas prices and inflation across all goods is rising). The exodus is already affecting cities like Austin, Texas where home values have increased by 39.4% over the last year.
What do you think about the exodus from California and when will it slow down?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.