If you are like so many other Californians, you are probably thinking about relocating. Moving out of California is a major step but one that many are willing to make for a variety of reasons. Here are some common drivers for people fleeing the state.
High Poverty Rate
The Census Bureau uses different metrics for tracking poverty rates. The official method of measuring poverty doesn't account for government welfare programs and the actual cost of living. The Census Bureau's supplemental poverty measure (SPM) does account for these factors. In fact, for California, the SPM is higher than its official poverty measure, meaning more people live in poverty in the state than typically reported. Officially, California averaged 11.4% of its people in poverty from 2017 through 2019 on the official measurement. However, for the same time period, its average for the SPM was 17.2% of residents.
With more than one in six Californians living in poverty according to the SPM, moving to another, more affordable state seems like a good idea.
High Cost of Living
The high poverty level for the SPM relates to the high cost of living in California. In fact, in some states, when factoring in the cost of living, the SPM is lower than the official poverty rate. Therefore, in those places, money goes a lot farther and even when not earning as much on paper, the money still has more purchasing power in that state.
In fact, the high cost of living is the reason cited for 53% of Californians wanting to leave the state in 2019. The numbers were higher for millennials, among whom, 63% reported that they were thinking of moving out of California.
Homelessness
Yet another factor likely connected to the state's high cost of living and high housing costs is the rate of homelessness. In a 2019 survey, 62% of Californians reported homelessness as a serious problem. These residents are correct in their assessment of the issue. The state had the highest number of homeless in the country, with 151,278 in 2019. The state with the second-highest population of homeless, New York, fell far behind with only 92,091 homeless people.
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Affordability
California has a problem with its high cost of living. In addition to the prohibitively high costs of housing in the cities, state taxes reduce the amount of spending money Californians have. In fact, California has the highest total cost of living among states in the lower 48. Hawaii and Alaska typically pay more for food and goods due to the extra transportation costs.
Politics
For some, politics plays a role in leaving the state. Personal differences with state politics and how California lawmakers govern residents is one aspect of why Californians leave the state for political reasons. These migrants find their conservative politics don't match the more liberal approach of the state.
Another reason that politics affects some people's decisions to move is how they perceive politicians treating businesses. Some businesspeople report a "hostile business climate" in California that makes starting and growing a business difficult. Therefore, these people may move to states with governments that are more open to promoting business ventures or places that have more conservative politics.
Jobs Leaving the State
Due to the economic climate and cost of doing business in California, many jobs are leaving the state for other locations. For instance, Tesla's Gigafactory for assembling the company's Cybertruck announced its opening near Austin, Texas, in July 2020, though the company's founder, Elon Musk, lived in California at the time. He has since moved to Austin. The factory will introduce 5,000 jobs to Texans.
Make Your Move Easier by Contacting IWanttoMoveOutofState.com
If you identify with why Californians leave the state, you may want to plan your own exodus to another location. However, when moving out of state, you will still have to sell your California property. Let us help you finish this task easily. Contact us at IWanttoMoveOutOfState.com for more information on making your move a little easier.
