Millions of People Leave Calif.


jesus caption

Annalee Gorman, Mirada Staff

In the last decade, over 5 million people have left California. Many leave to Texas, Arizona, Nevada and Oregon.

Since 2011, housing prices have risen over 71 percent. With prices getting exponentially higher, it is harder to sustain a family and afford California.

As wealthy business move into California, it drives others out. Housing and jobs in California are more competitive as a result of the influx from these expanding businesses. Evidence from California Legislative Analyst’s Office shows they are gaining high-income, college-educated residents.

Those who earn $55,000 or less were more likely to move out of California compared to those earning $200,000 or more who are more likely to move to California.

With growing technology companies, California is getting younger and sleeker. It gained mostly adults aged 26-35 years-old who have at least a Bachelor’s degree. The increase in educated adults correlates with the increased housing prices.

Those who have obtained at least a Bachelor’s degree have more opportunities to earn higher salaries, especially in places like the Silicon valley. Since the recent growth of Silicon Valley companies, housing prices have skyrocketed.

For example, the median housing cost in San Jose is $1 million. However, even the vaunted silicon valley will take a hit from the housing crisis without a solution. A low supply of homes decreases the amount of people that a business can hire and eventually ceases the hiring process.

Housing is the prominent reason why many relocate. California’s median housing cost for a single-family home is $550,990 while the national average is $247,800 according to the National Association of Realtors. With a 13.3 percent income tax rate, it’s the highest in the nation.

Housing affordability in California continues to decrease and creates a higher demand for an already crowded state. According to the state’s housing department, less than 80,000 homes have been built annually thus escalating rent and house prices.

States such as Texas with an average home prices listed at $313,000 appeal to coastal Californians (San Jose, San Francisco, Los Angeles and San Diego) with average home prices of $720,000. Additionally, Texas has a strong market, no income tax and with many corporate moves such as Toyota, it has an astronomically high growth rate.

This year, California’s job market is expected to decrease. Last year, the job margins increased by 2 percent. Now, it is predicted to rise by 1.3 percent.

It’s not just the unaffordable housing prices that draw out Californians. The competitive and crowded environment leaves little room for jobs. More expensive cities like Seattle and Portland compensate through their booming market.

Living in Portland compared to Los Angeles is ⅓ the price, and is one of the fastest growing cities in the United States. House prices aren’t decreasing either. Over the past year, California home prices have risen 6.5 percent and within the next year are predicted to rise 8.3 percent. For most, flocking to Nevada or the Sunbelt region makes the most fiscal sense.

Other factors such as crime, traffic, politics and friendlier people contribute to this trend. Proposition 47, enacted in 2014 is a potential reason for the increase in crime rates. Prop 47 reduces the harshness of penalties, but also releases thousands of felons from prison, reduces penalties for theft, gun and “date-rape” drugs.

According to the U.S Department of Justice, in some California cities, the crime rate has increased by over 50%.

The young generations that move to California contribute to the high number of liberals in the state. Conservatives are more likely to move to other traditionally conservative states such as Texas and Arizona.  The high taxes, worry of crime and frustration of the noticeable liberal shift leaves many to move to places like Texas where they can find a “friendlier” environment.

California is also known for its traffic and frequent road rage. With congested freeways throughout California, many opt for the open roads in less crowded states. As a result, there is less stress while driving and more job and life satisfaction according to City Clock Magazine.

As the California continues to become more expensive, more are predicted to leave, fleeing to open states with booming economies. Now home to business tycoons and eager entrepreneurs, California is becoming younger, liberal and pricey, driving thousands out.