Jun 9, 2025
It’s no secret that California’s golden glow has started to dim for many residents.
The latest PODS Moving Trends Report reveals a mass migration as people pack up and move out of the Golden State, with seven cities being hit especially hard.
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The reasons? Soaring housing prices, crime concerns, tax burdens, and the dream of a more affordable life elsewhere.
Here are the top five California cities Americans are ditching and the new hot spots where they’re landing.
The top 5 California cities going through mass exodus
California is home to seven of the top 20 U.S. cities or metro areas with the highest number of residents packing up and moving out, according to the report.
But the top five cities experiencing the drain are:
Stockton-Modesto
People are leaving due to factors such as high crime rates, poverty, and homelessness, making it less attractive for families and businesses, and lacing it in the 13th spot on the report.
Santa Barbara
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Despite coastal beauty and high-end allure, Santa Barbara is seeing an exodus, placing it in 11th spot. According to recent data, the city’s population has dropped by over 4% since 2020. Despite its postcard-perfect charm, residents are struggling to keep up with home prices and an unemployment rate above the national average.
San Diego
Creeping up to the fifth spot from last year’s eighth means this city is losing more residents. Beautiful beaches simply can’t make up for the soaring cost of living. San Diego’s laidback lifestyle is being overshadowed by housing shortages and rising crime, meaning residents are leaving.
San Francisco
Once a tech-fueled dreamscape, San Francisco is bleeding residents (and businesses) and landing in the second spot again since last year. Eye-watering rents, visible homelessness, and a spike in crime are pushing people to reconsider the Bay. The city ranks at the very bottom of inbound vs. outbound moves, according to moveBuddha.
Los Angeles
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Topping the outbound stats in the PODS study for the second consecutive year in a row, Los Angeles has been the poster child for California’s migration crisis. The sky-high taxes, pricey housing, and congested traffic are pushing even celebrities to greener pastures. Not to mention wildfires and issues with insurance coverage.
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Top 5 relocation destinations for Americans
A Public Policy Institute of California survey shows homelessness has increased in many Californian communities and that housing affordability is a problem. The majority of people who leave are heading to states with lower taxes, lower housing costs, and higher perceived quality of life.
And according to a survey by SpareFoot, 26% of Americans who moved in 2024 did so for lower living costs, and 51% claimed safety was a major motivator. Many are looking for better work-life balance and lower taxes.
So, where is everybody going? Here are the top relocation destinations:
Texas
Cities like Dallas-Fort Worth are rolling out the welcome mat. In fact, it’s fifth according to PODS on a list of the 20 top cities people are moving to in 2025. One of the fastest-growing metro areas in the United States, the area’s affordability, economic opportunities, and high quality of life make it an obvious choice for budget-conscious movers.
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Florida
The Sunshine State is another no-tax haven that’s especially attractive to retirees and remote workers. Cities like Ocala (second on PODS) and Jacksonville (10th) are booming with growth and sunshine.
North Carolina
Raleigh (third) and Wilmington (tied for first) are stealing some of California’s spotlight with booming tech and healthcare sectors, low living costs, and family-friendly communities. North Carolina offers a strong job market without the sticker shock of California.
South Carolina
Greenville-Spartanburg (fourth) and Myrtle Beach (tied for first) are charming, offer job opportunities, and have a much lower cost of living. It’s Southern hospitality that’s attracting many Californians. California’s still got the sunshine, but for many, it’s just not worth the price tag anymore.
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Jessica is a freelance writer with a professional background in economic development and small business consulting. She has a Bachelor of Arts in Communications and Sociology and is completing her Publishing Certificate.
