Californians Are Benefiting Financially for Fleeing the Golden State
California may be called the Golden State, but residents who flee end up with much more green in their pockets.
A report released last month by the California Policy Lab concluded that Californians who leave the state often end up in more affordable communities and are able to build wealth more easily.
When residents move, they save an average of $672 per month on housing expenses alone — such as rent or mortgage, utilities, property taxes, and insurance.
The medium home price for them is $398,000 lower — marking 48 percent cost savings relative to the California communities they leave.
As a result, they are more likely to realize a key part of the American Dream by becoming homeowners.
NEWS: We’re releasing new research today on who is leaving California, where they go, and what happens to their finances after they move. https://t.co/evF2T8Zupl 🧵(1/9) pic.twitter.com/MiVsmDvqT4
— California Policy Lab (@CAPolicyLab) March 31, 2026
They are about 48 percent more likely to own a home relative to “similar Californians who stayed in the state,” according to the California Policy Lab.
Evan White, the executive director of the California Policy Lab at UC Berkeley, noted that “the price tag has gone up on the California Dream, and many families are leaving the state for more affordable places.”
“The difference these moves make is stark,” he continued. “Their destination neighborhoods are half as expensive and they end up much more likely to own a home within just a few years.”
The report also found that Californians who leave may come from wealthy neighborhoods, but they are more likely to be poorer than their California neighbors.
“Compared with their neighbors in these higher-income neighborhoods, movers, on average, show signs of worse financial health, including lower credit scores, higher student debt, and lower homeownership rates,” the California Policy Lab said.
The states most likely to receive Golden State transplants are those that neighbor it — Nevada, Idaho, Oregon, and Arizona.
California is known for having heightened living expenses combined with some of the highest tax rates in the nation.
Those policies are often cited as key reasons behind the state’s current population decline.
Beyond people leaving for better financial environments elsewhere, there are not as many new arrivals moving to California.
“Between 2020 and 2025, 42 states sent fewer people to California than they did before the pandemic,” the California Policy Lab said.
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