California is a desirable state to live in for a number of reasons. From idyllic weather to breathtaking scenery, close proximity to the ocean and vast employment and real estate opportunities. The state is filled with mountains and beaches which makes it ideal for people who love being outside. With all the good things that come with California, there’s no denying that the cost of living can be considerably higher when compared to other areas.
Home prices continue to rise in the Golden State which affects the cost and quality of living. It is harder to purchase and maintain a home in California which has resulted in a greater exodus of Californians in recent years. In 2019, a total of 653,000 left California and moved to other states which resulted in a negative population change in the state, and unfortunately, this trend is showing no signs of slowing down.
The primary reason for relocating continues to be housing affordability. Housing prices are continuing to rise as less inventory hits the market and supply can’t keep up with the demand. Buying a house is one thing but maintaining the house is another consideration. Property taxes and state income tax rates are higher compared to other states which makes living in California extremely expensive.
During the COVID pandemic in 2020, a lot of people worked from home and most companies have decided on a remote working opportunity for their employees which further fueled people who called California home to leave and go to other states because they can work anywhere.
It’s not just people who are moving out of the state, even businesses are moving and relocating to other states. In 2010, Oracle, Palantir, and Hewlett-Packard Enterprise moved out of California because of the rising costs of doing business in the state.
With a lot of people moving from California, a great question comes to mind and that is, “Where are they going?” Read along as we talk about the best states to move to from California.
Texas
Employment in Texas
Austin, the capital of Texas, is no stranger to being a pioneer in technology. It is, after all, the birthplace of IBM and Texas Instruments. Nowadays, Austin is ushering in a new era and welcoming tech workers leaving the Bay Area to a place where it is more affordable. Because of the number of tech people moving from California to Texas, tech companies are also relocating some of their resources by leasing buildings and building campuses to cater to their workers. It also helps that Austin is the 5th most affordable city in the country which makes it really attractive for workers looking to relocate from California to Texas.
Texas offers a lot of business incentives for companies who are looking to relocate their operations to the state. When businesses relocate, they create jobs and make it more appealing for their workers to make the move from California to Texas.
Housing and Cost of Living in Texas
The home purchase prices in Texas are 60% lower compared to California so your money will certainly go a long way. With an estimated total of 82,235 people who moved from California to Texas, it is easy to think about the reasons why. Texas is a great place to live and is certainly more affordable than the Golden State. Texas has no state income tax which is a huge benefit for people looking to save money on taxes. This tax break is also welcome news to people who are thinking of starting their own business.
Food, Entertainment, and Sports in Texas
Everything is bigger in Texas! From authentic tacos to Tex-Mex offerings to the best BBQ, there are a lot of food options that you can explore in the state. The bigger cities of Dallas and Austin are premier entertainment and sporting event destinations. If you are craving nightlife and outdoor activity, you can go to nightclubs, amusement parks, and concert venues to listen to live music.
Texas is home to award-winning national sports teams that include the Dallas Cowboys, Houston Rockets, San Antonio Spurs, Dallas Mavericks, Texas Rangers, and Houston Astros.
Arizona
Employment in Arizona
Arizona is ranked third in the country for job growth which is double the rate of the national average. Strong industries that are booming in Arizona right now include financial services, healthcare, and technology. These industries are attracting a lot of people to make the move from California to Arizona.
Another great factor that people consider with their move is traffic congestion. Bay Area and Los Angeles traffic are getting worse while Arizona traffic is much more tolerable, with bigger highways and short drives.
Housing and Cost of Living in Arizona
Arizona is known for its desert landscapes, yearlong sunshine, and colorful sunsets which can be reminiscent of California. Compared to California, the average rent and mortgage payments are significantly lower. According to CNN’s Cost of Living Calculator, a salary of $100,000 in San Francisco will buy you the same amount of $50,000 in Phoenix. The reason for this is because groceries, housing, health care, utilities, and transportation are significantly lower in Arizona, and their income tax is nearly half compared to California.
Phoenix is the capital city in Arizona, which means that the cost of living in this area is higher than in other areas but the overall cost of living is still lower compared to California. The median home price in California is 180% higher than in Arizona and the cost of living is 60% higher in the Golden State. Arizona has no social security tax, which is attractive to retirees.
Food, Entertainment, and Sports in Arizona
Arizona is home to a lot of professional sports teams which includes Arizona Cardinals, Arizona Diamondbacks, Phoenix Suns, and Phoenix Coyotes. Arizona State University and the University of Arizona in Tucson are part of the PAC-12 conference and have great college programs.
Arizona has a lot of venues and places where you can go in and enjoy doing outdoor activities. Popular outdoor activities include rock climbing, golfing, fishing, skiing, camping, and hiking. Arizona is also home to beautiful national parks like the Grand Canyon National Park and Red Rock State Park.
There are a lot of things to do in Arizona, but if you are still looking for more or wanting to get out of the desert for the weekend, Las Vegas is a 5-hour drive away.
Nevada
Employment in Nevada
Nevada which is known as the Silver State has 3.15 million people living in it, which is significantly smaller than California’s population of 45 million. With a smaller population, Nevada is more affordable, less congested and you have gorgeous views of both mountains and desert vistas.
Housing and Cost of Living in Nevada
Nevada is another state that Californians move to, with a total of 47,322 people choosing to move from California to Nevada. The average cost of living in the state is 6.91% higher than the US average. Even with this figure, the cost of living in Nevada is less compared to California.
Las Vegas has the highest cost of living percentage in Nevada. The cost of living is higher than the national average and the housing cost is 22% above the national average. If you are looking for a lower cost of living area in Nevada, you can look into Sparks and Reno.
Nevada also has no income tax which makes it attractive for people in the higher income brackets. You can save more of your income in Nevada compared to living in California.
Vegas is the biggest city in Nevada and you can find everything here. This city attracts tourists and visitors from all over the world. If you are looking for a quieter place to live, here are your options:
Henderson has 50 parks, top-rated school districts, hiking trails and offers an excellent quality of life. Neighborhoods in Henderson are centralized in well-planned communities. Henderson is an excellent place to raise a family with a small-town community feel.
Dubbed as the “Biggest Little City in the World”, Reno is located on the eastern slopes of the Sierra Nevada Mountains. Reno is an old mining town and has a town of rich history. Nowadays, the main strip of Reno has casinos and lovely neighborhoods topped with lots of outdoor places and recreational areas for all ages.
The capital of Nevada, Carson City has a population of 55,000 and boasts of quieter and more peaceful living compared to Reno and Las Vegas. The sense of community is strong in Carson City which makes it the perfect place for retirees and young families.
This town is a perfect fit for you especially if you are looking for a place that is outside the hustle and bustle of city life. With a population of 8,000, this charming small town can be found on the northern shore of Lake Tahoe.
Food, Entertainment, and Sports in Nevada
Vegas and Reno are considered the entertainment capitals of the world. These two cities have everything that you might be looking for which includes: sports, award-winning singers and bands who do concerts, theatrical shows, and music festivals.
Popular tourist destinations in the state include Lake Tahoe, Red Rock Canyon, Great Basin National Lake, Black Rock Desert, and Lake Mead Recreation Area. The Black Rock Desert is home to the Burning Man music festival which attracts guests from all over the world.
There is no shortage of options when it comes to food in Nevada. They have a lot of options to choose from high-end fine dining to ethnic cuisines that you might not find everywhere else. Vegas has a lot of casinos that have international, world-class buffets with all the food that you can consume. The number of buffets in Vegas alone total 200. This just gives you an idea of how many options you can choose from when it comes to dining in Nevada.
Washington
Employment in Washington
Washington has been attracting Californians throughout the years because of the lower cost of living and lower taxes. Big companies like Amazon, Microsoft, Starbucks, and Google have headquarters in Seattle which makes it even more attractive for workers to relocate from California to Washington. These major companies bring so much revenue to the state and have created a lot of new jobs for Washington’s workforce.
Other important industries that employ a lot of people are shipping and transportation. Washington has major ports along Puget Sound where a lot of the state’s exports are transported and shipped. Washington is the country’s biggest producer of apples and cherries.
Housing and Cost of Living in Washington
Washington is very appealing to residents because it has a colder climate and beautiful sceneries. Seattle is a metropolitan city and is considered more expensive than other areas. Spokane is located on the eastern side of Washington and is more reasonable in terms of home prices. Other areas that have lower housing prices are Olympia and Vancouver. The median home price in Washington is $200,000 to $250,000, which is significantly lower than the housing prices in California.
Food, Entertainment, and Sports in Washington
Outdoor activities in Washington are abundant and there’s a lot of outdoor activities that you can participate in. Washington boasts of beautiful scenery made up of mountains, lakes, and coastlines. Hikers can climb up Mount Rainier and other natural parks and forests located in the state. During wintertime, there are a lot of ski resorts where you can enjoy skiing or snowboarding.
Seattle is home to several professional sports teams including the Seattle Seahawks, Sounders, and Mariners. Tacoma is another city in Washington that is affordable and has beautiful weather. This city exudes a vibrant and cultural vibe filled with museums, art exhibits, and waterfront art exhibits.
Spokane has a small-town feel and charm. Filled with restaurants, wineries, and outdoor entertainment venues, you won’t run out of things to do in this town.
Oregon
Employment in Oregon
Oregon has a low unemployment rate and the median salary is around $45,000. The top employers in the state include Mentor Graphics, Oregon State University, Intel Corp, and Nike.
Housing in Oregon
The Pacific Northwest is a popular place for Californians to move into. 1 out of 5 Oregon residents was born in California. With a thriving economy and beautiful scenery, Oregon is considered to be expensive, but not as expensive as California. Even if the cost of living is high, the home prices in Oregon are only a fraction of the cost of properties in California. Portland, which is considered the most expensive area in Oregon, has half of the housing prices compared to Los Angeles. Oregon has no sales tax compared to California’s 7.25% sales tax.
Food, Entertainment, and Sports in Oregon
The Beaver State is home to great state parks like the Boardman State Park where you can enjoy beaches, dunes, and unique sceneries. The Cascade Mountains and Mt. Hood will enable you to bask in the astounding panoramic views of the country.
The outdoor areas in Oregon are an adventure seeker’s playground. You can ski and snowboard through the mountains in wintertime or kayak and canoe through the lakes during summertime. Oregon also has an impressive nightlife and music scene as well as award-winning restaurants offering different cuisines.
Hasina Hason & Leo Esparza, located in Riverside, California are highly skilled and knowledgeable real estate agents. Hasina, Leo & the ReMax Impact Team are committed to their key core values of trustworthiness, integrity, and loyalty providing quality service is their highest priority. Whether you are buying, selling, or curious about the market, they have the answers.
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