California, long known for its sky-high cost of living, has been shaken by inflation and economic uncertainty in recent years. The Post has reported on some high-profile exits in the past but now we’re learning the exodus extends to more than just the ultra-wealthy.
Now, people are packing up, chasing the promise of the American Dream in new places where it finally feels within reach.
A recent UC Berkeley study revealed that those who left California discovered a measure of financial relief. In 2025 alone, the state saw a staggering net loss of 216,000 residents.
On average, those that left saved $700 per month on housing and were nearly 50% more likely to become homeowners, according to the study.
Between 2016 and 2025, departures among high-income earners from affluent neighborhoods surged by 6.4%, catching up to the exit rates of middle-income residents who once led the charge out of California.
Berkeley’s research shows that people who moved out of state paid about $1,706 a month for housing, which is $670 less than the $2,376 they paid in California.
As for people who moved to California, they saw their average monthly housing costs rise to $2,418, 38% higher than before.
After seven years in their new states, former Californians are 48% more likely to own a home.
The report notes that while incomes in these new areas are about 8% lower on average, the reduced cost of living more than compensates for this difference.
Some people can also keep their California salaries by working remotely, according to Berkeley.
Interestingly — the study shows that more people leaving California now come from higher-income neighborhoods, while fewer are leaving from lower-income areas.
“There are tremendous problems with affordability in the state,” Evan White, executive director of the California Policy Lab, told Berkeley.
“We find that is probably impacting people’s relocation decisions. … What we show for the first time is that people who leave are, in fact, improving their financial positions, and are able to own homes in greater numbers after the move.”
Meanwhile — Texas is the most popular destination for former California residents, followed by Arizona, Washington, and Nevada.
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