Californians are fleeing the Golden State in search of cheaper living, as soaring food, gas and housing costs are laid bare in a damning new report.
A study by the California Policy Lab analyzed credit data from 2016 to 2025 and found that residents who move out typically land in far more affordable areas.
All signs suggest California is fast becoming a playground for the wealthy, researchers warn.
On average, those who leave save about $672 each month on housing alone.
“We expected to see people moving to cheaper locations in other states, but our analysis showed the average costs dropping by nearly $400,000, that’s a key data point for families who want to become homeowners,” Evan White, executive director of the California Policy Lab, told Fox Business.
“The likelihood of becoming a homeowner increased by nearly 50% for those who left California. That’s a big difference,” White added.
Even in California’s so-called affordable areas, the price tag remains steep, with residents paying 11% more for groceries, 40% more for gas and 61% more for utilities than the national average.
Most movers aren’t going far; Nevada tops the list of destinations, followed by Idaho, Oregon and Arizona.
Those leaving California are often lower-income residents struggling to keep up with soaring costs, but discovering a more manageable life once they settle elsewhere.
Since the pandemic, the share of residents leaving the state’s higher-income communities has jumped to 19%, according to the California Policy Lab.
The families moving out aren’t destitute, but they are feeling the squeeze, especially compared to their more affluent neighbors.
Sky-high rents and housing costs have weighed heavily on residents–the average California household has about 35 percent less disposable income than the national average.
he reason is simple, high taxes, high housing costs and high energy costs.
The exodus of people could have serious consequences, the California Policy Lab said.
“If trends continue, the implications for California’s tax base and national political clout could be severe,” the report said.
“For example, after losing one congressional seat in 2021, California is on track to lose three to four seats in Congress after the 2030 Census.”
