Overview

Many Californians relocating out of the state are experiencing significant savings on their housing expenses. A recent analysis indicates that these individuals often find more affordable living conditions and greater opportunities for homeownership.

Key details

  • Californians moving away save an average of $672 monthly on housing costs.
  • The average housing cost in California is $2,376, compared to $1,705 in their new locations.
  • The analysis tracked the same households from 2016 to 2025.
  • Renters who leave California see a reduction in their rent by approximately 30%, or $631 per month.
  • Homeowners relocating find median home prices about $396,000 lower than in California.
  • In their new neighborhoods, 60% of residents own their homes, compared to 53% in California.
  • Those moving within California face slightly increased housing costs, rising from $2,263 to $2,277.
  • Individuals moving to California experience a substantial increase in costs, from $1,754 to $2,418.
  • The analysis was conducted by the California Policy Lab at UC Berkeley.
  • Housing costs considered include mortgage or rent payments, utilities, property taxes, and insurance.
  • Affordability concerns are driving many residents to seek housing outside of California.
  • California gubernatorial candidate Steve Hilton discussed related economic issues during a recent broadcast.

Context

The findings underscore the ongoing challenges of housing affordability in California, prompting many residents to seek more economically viable living situations elsewhere.

What happens next

As more Californians consider relocating to reduce housing costs, the trend may continue to impact the state's housing market and demographic composition.

What we don't know yet

Details regarding the specific reasons behind individual relocations and the long-term impacts on California's economy are not confirmed.