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New Studies Link California’s Exodus to Housing Costs and Faster Paths to Homeownership Elsewhere

A new analysis finds Californians’ take-home pay trails the nation despite higher wages.

Overview

  • New research from the California Policy Lab and the Public Policy Institute of California identifies high housing costs as the top reason residents leave the state.
  • Movers generally gain affordability, with typical destination home values about 48% lower and average monthly housing costs down roughly $675.
  • Those who depart are more likely to become homeowners within seven years than similar Californians who stay.
  • Most relocations are to nearby states, and Nevada takes the most per capita at about 226 arrivals per 10,000 residents.
  • Researchers warn that sustained outflows could shrink the tax base and may cost California congressional seats after 2030 if the pattern holds.