Leaving California Pays Off: Movers Save $672 a Month and See Faster Path to Homeownership, Study Finds
A California Policy Lab analysis finds that moving out of state cuts average monthly housing costs by $672 and makes former Californians 48% more likely to own a home within seven years — a stark marker of affordability pressures.
- Average savings: Movers out of California save about $672 per month on total housing costs.
- Homeownership gains: Leaving California raises the chance of owning a home by 48% (11 percentage points) over seven years.
- Renter relief: Renters who relocate see rents fall ~30%, roughly $631 monthly.
- Migration patterns: Most departures flow to nearby, lower-cost states such as Nevada, Idaho, Oregon and Arizona.
Study overview
The report, titled “Priced Out: Relocation Amidst California’s Affordability Crisis,” follows the same households anonymously from 2016 to 2025 to compare housing outcomes for people who moved out of California, moved within the state, or moved into California — reported by Fox Business, Realtor.com, and a video interview with California Policy Lab staff.
Key findings (detailed)
Average housing-cost change: People leaving California reduced monthly housing costs by $672 — from $2,376 while in California to $1,705 in destination neighborhoods. The study’s monthly housing figure includes mortgage or rent, utilities, property taxes and insurance, as reported in Fox Business.
Renters: Renters who left California saw rents drop by about 30%, roughly $631 per month (Fox Business).
Buyers: Homeowners who moved out encountered a median home price about $396,000 lower — roughly 48% less than the median price in the California neighborhoods they left, enabling faster transitions from renting to owning (Fox Business).
Homeownership rates: Destination communities had a 60% homeownership rate compared with 53% in the California neighborhoods departed. Over seven years, people who left California were 48% (11 percentage points) more likely to be homeowners than before; by contrast, those who moved to California were 27% (6 percentage points) more likely to be homeowners after seven years (Fox Business; video discussion).
Moves within California: Movers who stayed in-state saw almost no change in monthly housing costs — from $2,263 to $2,277, a $14 average increase (Fox Business).
How the study measured costs and outcomes
The analysis compares total monthly housing costs across locations, including mortgage or rent, utilities, property taxes and insurance, to give a fuller picture of monthly housing burden. Following the same households over time helps isolate how moving changes both costs and the likelihood of homeownership (Realtor.com).
“Their destination neighborhoods are half as expensive, and they end up much more likely to own a home within just a few years,” said Evan White, executive director of the California Policy Lab during a discussion of the findings.
Where Californians are going
The study mapped net migration flows by state and found most departures favor nearby, lower-cost states. Per 10,000 residents annually (2016–2025), the largest net inflows from California went to:
- Nevada: +81 per 10,000
- Idaho: +64 per 10,000
- Oregon: +37 per 10,000
- Arizona: +36 per 10,000
- Tennessee: +13 per 10,000
- Texas: +11 per 10,000
- Florida: +4 per 10,000
The study highlights strong preference for nearby states with lower housing costs, particularly Nevada, Idaho, Oregon and Arizona (Fox Business).
Local impacts: Some counties saw large departures — for example, Sacramento County recorded a net outflow of about 71,100 people from 2016 to 2025 (269,600 left vs. 198,500 arrived) (video source).
Why savings matter: prices and daily costs
Beyond housing, California’s higher prices for groceries, gas and utilities raise the overall cost of living, squeezing family budgets. Those day-to-day differences, combined with expensive housing, can make homeownership unattainable for many households (Fox Business).
Who benefits and who does not
Clear winners: Renters and prospective buyers who relocate — renters cut bills by roughly $631 monthly, and buyers face median home prices hundreds of thousands lower, reducing down-payment and mortgage burdens.
Those who lose out: People who move to California typically face large increases: newcomers saw average monthly housing costs climb from $1,754 to $2,418 — a $664 jump (Fox Business).
Moves within California generally yield minimal financial relief, so staying in-state is often not an effective escape from high housing costs.
Policy implications raised by the study
The findings reinforce concerns about California’s affordability crisis and suggest policy areas to increase housing supply, including streamlined construction approvals, modernized building codes, stronger enforcement, and targeted funding for housing projects — reforms that can appeal across party lines (policy discussion).
Practical takeaway: There are no overnight fixes; building more homes takes time, but reducing permitting delays and predictable rules can lower costs and help more Californians afford to stay or return.
Implications for the United States
Economic: Migrants bring spending power that can boost local economies, freeing income for consumption, saving and investment in destination communities (Fox Business).
Political: Large migration flows can shift state and local political landscapes, affecting housing demand, school enrollments and tax bases.
Social & cultural: Increased homeownership among former Californians suggests potential gains in wealth-building and community stability in receiving areas, while concentrated departures can strain communities left behind (Realtor.com).
Practical applications
For families weighing a move, the study offers concrete figures: leaving California can cut monthly housing costs by about $672 and materially increase the odds of homeownership within seven years. Policymakers can use these data to design permit reforms, supply incentives and targeted housing programs (Fox Business; Realtor.com).
Sources
California Policy Lab analysis and reporting by Fox Business, Realtor.com, and a recorded discussion with Evan White (video).
