Census data from the American Community Survey, released on October 17, reveals that between 2022 and 2023, over 690,100 Californians left the state. And only about 422,000 individuals moved in. There are a number of people leaving California.

 Although the outflow was still significant, it showed a decrease from the previous year, when 818,000 people moved out and 475,800 came in.

Economic pressures, along with personal reasons such as family ties and lifestyle preferences, continue to drive migration patterns both into and out of California.

Leaving California for Greener Pastures

Texas remains the top destination for Californians, attracting nearly 94,000 residents between 2022 and 2023. This number, though high, represents a decline from the previous years, where over 102,000 left for Texas in 2021-2022 and 108,000 in 2020-2021.

 Other popular relocation destinations include Arizona, which welcomed 54,200 Californians, Nevada and Washington with over 40,000 each, and Florida, where the number of incoming Californians dropped to 39,000 from the prior year’s 50,700.

The high cost of living is a common factor for many who leave. Although wages in California are often higher, basic costs like rent, groceries, and utilities are nearly out of reach for average wage earners. 

Texas, known for its affordability, remains attractive due to its lower cost of living, tax benefits, and reputation as a business-friendly environment.

Some former Californians are finding greater opportunities in Texas’s suburban areas, which offer a safer, more affordable lifestyle than California’s major cities.

Economic Impact on Migration

In addition to economic factors, political preferences, crime rates, and housing prices have influenced many residents’ decisions to leave.

 For business owners, states like Texas and Florida present opportunities to expand operations in more favorable environments, drawing many entrepreneurs to relocate. Texas and California are both free from state income taxes, which is a key attraction for those seeking a tax break.

The Californian Boomerang Effect

Despite the net outflow, some people still move to California each year, with Texas being the most common origin. 

In 2022-2023, 38,732 Texans moved to California, with New York contributing around 35,000, followed by Washington with 32,200.

 Many of these transplants are “Boomerangs” returning to California after spending time in other states, often drawn back by aging or ailing family members, or due to the desire for a familiar environment. For others, children’s challenges in adjusting to new locations motivate families to return to the Golden State.