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Some hard numbers on California migration out of state.

By
Real Estate Broker/Owner with Whitelaw & Sons Real Estate Services DRE# 00984909

I came across a recent article here on active rain about folks leaving the state. It got me thinking about the subject and I decided to do some research. 

Most of us hear things from time to time that make sense when we hear them, but we never go back and look up the hard data. In this case, checking the data backs up the claim that folks are leaving the state - a bit.

First, lets get the statewide numbers out of the way. The bottom line is that there has not been a net decrease in population for California (US Census) going back to 1990. In fact, from 1990 to the latest years we have numbers for, California has had a higher net increase in population (as a percentage) than the nation as a whole.

Things start to get interesting when you look at city specific numbers. In this case, let me use San Francisco as an example since it is near my area. Now from April 1, 2000 to July 1, 2003, San Francisco had a net DROP in population of 3.2%.

Other population centers saw the same kinds of problems. So what inspires folks to leave California? Many look first to the high cost of living and while that may play a part, it certainly cannot be the only factor. It has always been expensive to live in California. Granted, when vacancy rates for rental properties drops below 1% and your rent is suddenly $2000 a month for a studio, many figure a trip out of state might just be the solution. In this case tho, I think it is important to look to other contributing causes.

There is more at play here and if you look at what businesses are up to, you can see another important element. Our own state government is making it so tough for businesses to get work done that many are looking out of state to relocate. Many businesses tell their employees that they will keep their pay at the California level if they will relocate with the company to Reno, Austin, Charlotte, Tampa... etc, etc, etc.

I have had many old friends jump at the chance to get what basically boils down to a 40% pay increase by relocating with their company to another state.  

I was born and raised in California, but I have also considered leaving the state. The times I am most enticed to do so are when I am wrestling with setting up a new business in California or paying my state income taxes. At times it seems as though California is only interested in alienating business with policies and road blocks that drag down the most dedicated small business man.

What saves California? Well, here we find ourselves in a position where California survives in spite of its state government as opposed to because of it. When you live in a place where you could take a swim in the ocean in the morning, enjoy lunch in the desert and dinner on the ski slopes, it's easy to understand why so many call California home. 

    

 

Scott Gormley
Oak Valley Mortgage-California Home Loans and Refinancing - Chico, CA

Hey Robert,

Thanks for the good topic. I see a lot of Californians relocating within the state as well. Many are moving to my hometown of Chico because the cost of living is much less than San Diego,LA,Orange County and the Bay Area. Many of them are getting ready to retire and their net worth is in their homes...so they are ready to "cash out" and buy the same home still within California but at a lower cost...

Scott 

Dec 27, 2006 01:29 AM
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate
Right next door in Nevada we have no state income tax and comparitively affordable real estate. I'm sure that we account for a big portion of the migration - which means I need to network with a lot more California agents for referrals!
Dec 27, 2006 05:29 PM