Californians Who Left for Remote Work Have Shown ‘Signs of Returning’

While reports have circulated that Americans are fleeing California to lower cost of living areas, the National Association of Realtors has revealed that the state saw a surge in migration to the state in recent years.

California was the second most popular state for Americans to move to in 2022, according to data from the National Association of Realtors. The report found California moves made up 9.4 percent of interstate moves nationally that year.

“Domestic migration that intensified during the pandemic is showing a return to pre-pandemic trends for location choice,” Jessica Lautz, NAR Deputy Chief Economist and Vice President of Research, told Newsweek. “Californians who flocked to other states with remote work flexibility are showing some signs of returning.”

In the 2024 report, California did not see high net migration numbers, according to the NAR. Affordability was cited as a possible issue, especially as remote work continues to be available in many job sectors. However, the job market and the weather in the state has continued to draw people to set up roots.

“It’s fascinating that, for all of the grief California has taken in terms of higher cost of living, more regulations, and increased media coverage of crime in its major cities, it remains one of the most desired states for people to move to in the United States,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. “When it comes to California, aspirations often override logic, especially for those in a younger age demographic.”

Previous reports have shown that California move-ins declined by 11 percent since 2022, according to the U.S. Census Bureau.

Overall, since 2014, California has seen 700,000 adults leave the state citing housing as a primary reason, according to the Current Population Survey.

But this trend might be subsiding, according to the NAR report.

Many are moving into or back to California to be closer to friends and family, Lautz said.

Nationally, though, the 2024 report reveals that people are still more likely to move to the South than the West Coast.

The other top states for 2022 included Texas and Florida, making up roughly 10 and 7 percent of all moves. Nationally, 46 percent of surveyed realtors’ clients moved to the South, with 25 percent moving to the West, 18 percent moving to the Midwest and just 11 percent moving to the Northeast.

Still, the post-COVID surge in California moves was notable and likely reflects California’s powerhouse economic status, with thriving industries in tech, entertainment and agriculture, said Michael Ryan, a finance expert and the founder of michaelryanmoney.com.

“On one hand, the state is grappling with a significant exodus of residents driven by the high cost of living, housing shortages, and steep taxes. However, California simultaneously remains a top destination for new movers,” Ryan told Newsweek.

The appeal of California’s unparalleled lifestyle…Its magnificent natural scenery, culture, and pleasant climate also lures many to overlook the price tags.”

Residents are likely paying higher prices in return for the weather as well as the outdoor and cultural amenities, said nationwide title and escrow expert Alan Chang.

“There is always a cost to this, higher living expenses, more traffic, and overall quality of living can be a compromise,” Chang told Newsweek. “It can still be an attractive state for many industries as well for the right situation.”

While California is experiencing an exodus of middle-class and even high-earning residents in search of more affordable states, the state is still attracting new talent and immigrants in many industries.

“Ultimately, California’s future will hinge on how well it can address its affordability crisis,” Ryan said.

“If the state fails to improve the housing supply and alleviate the cost burdens that drive residents away, it risks undermining its status as a premier destination for talent and business. But if California can strike the right balance, it may just maintain its magnetic pull.”

Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, said those who can afford California’s cost of living will likely continue to move there, while others flee for more affordable regions.

“Many who have left might come to realize the unique value they were paying for—things like the state’s outdoor lifestyle, stunning weather, and exceptional air quality,” Thompson told Newsweek, thinking back to his time in California. “I experienced not just the beauty of its hiking trails and coastal views, but also an understanding of why so many people remain committed to calling it home.”

Updated 11/26/2024 2:30 p.m. EST: This story and headline has been updated with new information.

Source: https://www.newsweek.com/california-sees-surge-people-moving-state-1986685