California, still the state with the largest population in the United States, has been experiencing a continuous “migration wave” in recent years, leading to a significant loss of population and hundreds of billions of dollars in taxable income annually. Among those who are leaving are celebrities, wealthy individuals, and pillars of society.
Data from several major moving companies shows that in 2024, more people left California than moved in, with over half (54%) of those leaving having annual incomes over $150,000. Atlas Van Lines found that Arkansas became the most popular state for relocation in 2024, attracting a large number of out-of-state residents.
United Van Lines’ annual report also indicates that, under economic pressures, states in the southeastern part of the United States have become the preferred destinations for relocation: the allure of sunny destinations like South Carolina, Alabama, and Arkansas is on the rise.
In contrast, California, once known as the “Golden State,” was previously the top choice for immigrants from the United States and around the world, but its expensive housing and overall cost of living now make people hesitate.
Since 2000, California’s population growth rate has significantly slowed down. Particularly during the pandemic, the number of residents moving out of California to other states reached a historic high, while international immigration numbers dropped to the lowest levels in decades.
Data from the U.S. Census Bureau’s decadal statistics show that nearly 800,000 people left California in 2022 alone, with over 3.5 million moving to other parts of the state.
These relocations have also directly impacted the economy. Based on tax filings and exemptions from 2018-19, the IRS compiled data on population movements between states in 2017-18. The results indicate that hundreds of thousands of taxpayers, with nearly $27 billion in total taxable income, left blue states governed by Democrats and moved to red states governed by Republicans. California was the leading blue state from which Americans left.
Despite the significant loss of residents in California in 2024, there were also new residents moving in. From July 1, 2023 to July 1, 2024, the Census Bureau recorded an increase of 232,570 people in California.
As for reasons for leaving California, in addition to factors such as family, work, and retirement, the uncertainties in the California economy, worsening public safety, extreme political polarization, expensive housing and cost of living, increasing tax burdens, stringent business regulations, illegal immigration, and issues with the education system have all contributed to a large number of people leaving the state.
Speaking of housing prices, the median home price in the United States is currently around $406,000; however, in December of last year, the median home price in California exceeded $860,000, a 5% increase from December 2023.
From a political perspective, California is a deep blue state governed by the Democratic Party. According to a survey by the Public Policy Institute of California (PPIC), while most people leaving California are driven by personal and economic factors, those with conservative leanings are more likely to express a desire to leave the state.
California Governor Newsom has repeatedly emphasized the benefits of living in California and its robust economy, while also asserting that the state government is working to address housing affordability issues.