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For many Californians, the high cost of living makes staying in the state near-impossible, experts say. As we discussed in another recent article, California’s tax policy drives up the cost of living. One of the major cost of living factors that is most affected is the Housing Cost.
For many middle-class families and retirees, the increased cost of living is forcing them to consider moving to a state that is less costly for them.
So, who are the Californians that are moving and where are they moving to?
California has so much going for it — weather, beaches, mountains, ski slopes, and deserts, it has it all! Why would anyone want to leave?
Well, besides the long-term residents, the celebrities, actors, and techies, most people move to California for work. And when those workers retire or start to grow a family, the financial impact of living in California may become untenable. And with the pandemic of the last two years, virtual work is allowing workers to consider a move without giving up on the work.
So those that are migrating out of the state tend to be those whose lives have changed. With new priorities, they tend to look for another place to call home.
There is an ongoing rivalry between two of the biggest states in the country - California and Texas. But, Texas has a cost of living that runs circles around California. Living in Texas is 21.1% cheaper than in California. Housing in Texas is 24.8% cheaper.
Sharing a border with California, Arizona has many of the same traits as southern California, minus the beaches. It's largest city, Phoenix, has a lot of urban amenities with less traffic. So moving one state over might not be too disorienting, but you would reduce your living costs by 17.7% if you moved to Arizona.
The state of Oregon contains a lot of natural beauty, from Crater Lake to the rocky coastline. If you enjoy being close to nature, living in Oregon would be 13.9% cheaper than California.
Another neighbor state of California, Nevada has a large rural landscape with the exception of Las Vegas. But, Nevada is 7.3% cheaper than California.
Washington is a desirable state to live in, with a nice balance of urban and rural living. Seattle is a hot market. But overall, the cost of living in Washington State is 7.1% less than California.