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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.

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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.

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Danielle Antosz Freelance contributor

Danielle Antosz is a freelance contributor to Moneywise.

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