A number of investors, retirees and other homeowners are looking for states and cities that are more cost effective than living in California. Just a few of the costs, let's start with real estate, that make other states competitive are the cost of the home, property tax, insurance and in some cases utility costs.
With the high number of employees being able to work from home, this has changed the dynamics of being required to live within a reasonable commute time from an actual office location to moving to a location that offers far more than many commuter locations.
For several years we have been tracking the migration of Californians who are leaving for a variety of different reasons and were finding there is an obvious pattern, which is why California lost over 290,000 residences from January 1, 2020 to July 1, 2021.
Lets start with the real estate investors. First and foremost, many investors are moving their rental property to states with an overall better financial performance, whereas the typical resident is more focused on moving their primary homes to states that are friendlier than California is to retirees.
Surprisingly, there are a few cities that have attracted investors, retirees and also have a booming job market for those seeing other career opportunities.
The reasons for moving out of California can be a little different for everyone, although there's a notable pattern of reasons to move. Retirees want to save as much of their retirement money as possible and some states do not tax social security income. Investors are moving their investments to places where they have a better return on investment and in many cases these states and cities are more business friendly than the in our gold state. Job seekers and renters can find areas around the country where they're able to get a decent paying job and still be able to purchase a home for a reasonable price.
California is an expensive place to live compared to many states. However, the golden state does have a lot to offer and if you're willing to pay the price like the other 39 million residence, then it just might be worth it to stay.
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