California’s high costs push some residents to cheaper states
A California Policy Lab study says out-migration remains small, but affordability pressures and fewer arrivals are raising policy concerns.
By Priya Raghavan · Science Reporter
2 min read
A new California Policy Lab study says high living costs are pushing some Californians to consider leaving for states where housing is cheaper. The finding carries weight because the state’s out-migration, though small compared with its population, is occurring alongside a slowdown in arrivals.
The study, titled Priced Out: Relocation Amidst California's Affordability Crisis, examined who leaves California, where they move and how their finances change after relocating, according to the University of California, Berkeley. Evan White, co-executive director of the California Policy Lab, discussed the findings in a UC Berkeley video.
White said the number of people leaving California in recent years remains a small share of the state’s roughly 39 million residents. He estimated annual departures at about 100,000 to 200,000 people, according to UC Berkeley.
Those exits alone do not amount to a large population shift, White said. But he said they become more concerning when combined with a decline in the number of people moving into California from other states and countries.
Housing costs sit at the center of the issue, according to White. Californians who leave often relocate to places where housing costs are 30% to 50% lower than in California, he said.
The study also found that people who move out of California see large gains in their chances of owning a home over the following seven years, according to White. UC Berkeley said the research looked beyond the decision to move and assessed what happens to households after they settle elsewhere.
Neighboring states are among the main destinations for cost-conscious residents, White said. Oregon, Nevada and Arizona draw Californians looking for lower expenses, according to UC Berkeley.
The pressures described in the study extend beyond mortgage and rent costs. UC Berkeley said many Californians are weighing the combined burden of housing, food, gasoline and utilities when considering whether they can afford to stay.
White said the pattern creates a challenge for state and local officials. According to UC Berkeley, the trends add pressure on policymakers to address California’s cost of living, with housing affordability the central concern.
This story draws on original reporting from Phys.org.