700,000 Left – Despite 11% Decline, California Still Among Top States for Movers – Why?

California maintains its position as the second most popular destination for interstate moves despite ongoing departures, according to data from the National Association of Realtors.

The state captured 9.4% of all interstate relocations in 2024, trailing Texas at 10% and outpacing Florida’s 7% share.

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The sustained influx comes even as Census Bureau data shows California move-ins declined by 11% since 2022, with approximately 700,000 residents leaving the state since 2014, citing housing concerns. The apparent contradiction reflects California’s role in national migration patterns.

“It's fascinating that, for all 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, financial literacy instructor at the University of Tennessee at Martin, said to Newsweek. “When it comes to California, aspirations often override logic, especially for those in a younger age demographic.”

The state’s appeal stems from its economic diversity and lifestyle offerings. “The appeal of California’s unparalleled lifestyle … Its magnificent natural scenery, culture and pleasant climate also lure many to overlook the price tags,” Michael Ryan, founder of michaelryanmoney.com, told Newsweek.

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Recent migration data suggests a possible return to pre-pandemic patterns. “Californians who flocked to other states with remote work flexibility are showing some signs of returning,” said Jessica Lautz, NAR Deputy Chief Economist. Family connections drive many returns, with 30% of movers nationwide citing proximity to friends and family as their primary motivation.

The broader national landscape shows continued Southern dominance in migration patterns, attracting 46% of moves compared to the West’s 25% share. Florida led all states with a net migration gain of 372,870 people in 2023, followed by Texas at 315,301.

Title and escrow expert Alan Chang acknowledged the trade-offs facing California residents. “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.”

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The state’s future attractiveness may hinge on addressing its affordability challenges. While California continues losing middle-class residents to more affordable regions, it simultaneously draws new talent across various industries, particularly in the technology and entertainment sectors.

NAR’s research found distinct motivations among those choosing Western states like California. Western-bound movers prioritize housing value more than other regions, with 24% citing “more house for the money” as their primary motivation. The trend appears strong among remote workers, with 43% of recent buyers nationwide reporting job location played no role in their purchase decision due to work-from-home flexibility.

"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.”

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