Home / Business and Economy / Californians Flee High Costs, Seek Greener Pastures Elsewhere
Californians Flee High Costs, Seek Greener Pastures Elsewhere
24 Aug
Summary
- California's high housing costs, taxes drive residents to relocate
- Remote work allows high-earners to move to states with lower costs
- Texas, Florida, and Washington emerge as popular destinations
As of August 2025, California remains an economic powerhouse, but the state's rising living costs, particularly in housing, are driving more residents to consider leaving. According to the Public Policy Institute of California (PPIC), the top destinations for these movers are states with no state income tax, such as Texas, Florida, and Washington.
The pandemic's widespread adoption of remote work has given high-income earners the flexibility to relocate while continuing to earn California-level salaries. This trend has been fueled by California's median home price reaching $828,900 in July 2025, more than double the median in Texas ($352,700) and significantly higher than in Arizona ($439,200) and Nevada ($465,200).
Additionally, California's top state income tax rate of 13.3% on incomes over $1 million, the highest in the country, has made low-tax states particularly attractive to high earners. While politics may not be the primary reason for relocation, the state's political climate can also influence where someone chooses to settle, especially when other factors are comparable.
