Californians see big savings, higher home ownership after move: study

A growing number of Californians are fleeing the Golden State as the cost of living rises, and many are financially disadvantaged.

Faced with sky-high housing prices and rising daily expenses, residents are moving to less expensive areas where the savings can be substantial. On average, movers end up with monthly housing costs of around $672.

After seven years, they are 48% more likely to own a home than those who stay, according to a recent report by the California Policy Lab, “The Price is Out: Migration Amid California's Affordability Crisis.”

The study analyzed the migration patterns of the credit bureau tracking data from 2016 to 2025.

“We expected to see people move to cheaper areas in other states, but our analysis showed that the average cost dropped by about $400,000 — that's a key point for families looking to become homeowners,” Evan White, executive director of the California Policy Lab, told FOX Business.

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The California state flag flies on a pole against a blue sky. (Stock)

“The probability of being a home owner increased by almost 50 percent for those who moved from California. That's a big difference,” he added.

Even in its least expensive states, California remains very expensive compared to most of the country.

Residents pay about 11% more for groceries, 40% more for gas and 61% more for utilities than the national average, according to the report.

“When people leave California, they move to places that are less expensive,” White said. “This suggests that California's high cost of living is influencing their decision to travel, or at least their choice of destination.”

While incomes in destination states are often slightly lower, reduced housing and living costs often outweigh that difference, the study notes.

Most shipping goes to nearby, lower-cost regions instead of across the country.

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An aerial view shows a residential area in Las Vegas. (Stock)

Nevada leads the way, followed by Idaho, Oregon and Arizona.

“I was surprised to see that it was possible for people to move from California to nearby states, like Nevada and Idaho, and not Texas and Florida, which is getting the media attention,” White said.

This trend also includes income levels.

A growing share of those who leave come from high-income areas, although many show signs of financial problems, such as high debt and low scores compared to their peers.

“What happens in California in the long term is in the hands of policymakers. Right now, they seem to be focused on reducing the cost of living, but it takes a long time to 'turn the ship' on these issues,” said White.

A person gives another person a set of house keys. (Stock)

“But people should temper their expectations about what success means. Costs probably won't come down much, but we might be able to slow their growth. California will always be more expensive than other states, simply because it's a more desirable place to live.”

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The move also comes as California lawmakers weigh new taxes targeting the super-rich, including a proposed 2026 ballot measure that would impose a one-time 5% tax on people worth more than $1 billion.

Kevin Brady, former chairman of the House Ways and Means Committee and an adviser to Americans for Free Markets, previously told FOX Business that high taxes and burdensome regulations are driving businesses and individuals to leave green states, calling it “the economic story of the decade.”

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“I don't know why California continues to tax its businesses and people so harshly,” Brady said. “This is a good situation, it's a changing situation, but they are driving away – not the rich and not just the businesses – but their young people.”