In 2023, California emerged as the leading state from which Americans are fleeing, driven by escalating living costs, traffic congestion, political dynamics, and crime rates. According to PODS Moving and Storage, the Golden State experienced a net loss of 91,000 residents last year.
A Statewide Trend of Departure
The mass exodus isn’t limited to any particular region within California. Seven California cities were among PODS’ top 20 move-out destinations for 2023, with Los Angeles, San Francisco, San Diego, and Stockton-Modesto securing spots in the top 10. This widespread movement suggests a statewide discontent.
The Root Causes
Terry Gilliam, a former resident of the San Francisco Bay Area for 35 years, is one of many who decided to leave California. Gilliam moved to Florida in 2021, citing multiple factors that contributed to his decision. “It was the cost of living and the politics, the traffic, homelessness, crime — everything has gotten worse and worse in California and the solutions they proposed only made things worse,” Gilliam shared with FOX26.
Financial Strain and Housing Crisis
In California, the financial burden is greater. The country’s population fell from 39 million by 2023, the lowest level since 2015, according to the U.S. Census Bureau. Census Bureau figures show him. The cost of living, driven by fair sales, income and property taxes, has been key. The Cost of Living Index, released by the Community Economic Research Council, shows that the cost of living in California is about 40% higher than the national average .
Housing stands out as a key issue. Gilliam, who runs two Facebook groups, “Living California” and “Life After California,” referred to exorbitant housing prices as “the straw that breaks the camel’s back” The average home price in California is $786,938, which is more significantly higher domestic prices. These sharply rising costs, combined with rising rents — averaging more than $2,800 for a two-bedroom apartment and more than $3,000 in cities like San Francisco and Los Angeles — have many people have been able to afford a life in California.
“The high cost of shelter is due to a massive shortage of housing,” Gilliam explained. This shortage creates a domino effect, severely impacting Californians’ financial stability.
The Appeal of the Sunshine State
Many Californians are relocating to states like Texas, Florida, Arizona, Tennessee, and Nevada, which are known for lower living costs and favorable tax policies. Gilliam chose Florida, finding solace in its contrasting environment. “Law and order rules here,” he remarked, appreciating Florida’s lower crime and homelessness rates compared to California.
Despite Florida’s appeal, it is no longer the top state for move-ins. The Southern Appalachian region, including Georgia, Tennessee, North Carolina, Alabama, and South Carolina, has become increasingly popular. Nevertheless, Florida still enjoys positive net migration, with a 3.7% increase over the past decade.
Challenges in Florida
Florida is not without its challenges. The state faces high inflation rates, nearing 4%, partly due to severe weather conditions like hurricanes and tornadoes, which elevate property risks. This has driven up home insurance costs dramatically. In 2023, Florida homeowners paid an average of $10,996 annually for insurance, with a predicted increase to $11,759 in 2024.
Stephen’s Insight
Despite these challenges, Florida’s appeal remains strong for those seeking an escape from California’s high costs and complex socio-political landscape. The Sunshine State continues to attract residents with its relatively lower living costs, favorable tax conditions, and a different pace of life.