Californians cut costs, boost homeownership after leaving, study finds

A growing number of Californians are fleeing the Golden State as the cost of living climbs, and many are coming out ahead financially. Facing sky-high housing prices and rising everyday expenses, residents are relocating to more affordable areas where the savings can be substantial. On average, movers end up in neighborhoods with monthly housing costs about $672 lower. After seven years, they are 48% more likely to own a home than those who stay, according to the California Policy Lab’s recent report, "Priced Out: Relocation Amidst California’s Affordability Crisis." The study analyzed anonymized credit bureau data tracking migration patterns from 2016 to 2025. "We expected to see people moving to cheaper locations in other states, but our analysis showed the average costs dropping by nearly $400,000 – that's a key data point for families who want to become homeowners," Evan White, executive director of the California Policy Lab, told FOX Business. BILLIONAIRES AND BUSINESSES FUEL GROWING EXODUS FROM BLUE STATES "The likelihood of becoming a homeowner increased by nearly 50% for those who left California. That's a big difference," he added. Even in its less expensive regions, California remains costly compared to much of the country. Residents pay about 11% more for groceries, 40% more for gas and 61% more for utilities than the national average, according to the report. "When people leave California, they move to much more affordable locations," White said. "This suggests that California's high costs of living factor into their decision to move, or at least their choice of destination." While incomes in destination states are often slightly lower, reduced housing and living expenses tend to outweigh those differences, the study notes. Most relocations are to nearby, lower-cost states rather than across the country.