Forget California! Americans are abandoning the Golden State in droves — here are 3 major factors researchers say are driving the reverse rush

When remote work became widespread during the pandemic, many high-income earners gained the flexibility to move to states with lower costs and friendlier tax codes — all while continuing to earn California-level salaries.

The top destinations for these movers have something else in common: no state income tax.

Texas, Florida and Washington have emerged as popular relocation magnets for affluent remote workers looking to stretch their income further — especially as inflation and home prices remain high.

So what’s driving people out of California? Research points to three primary factors behind the state’s ongoing outbound migration.

1. Housing costs and the price of staying

Housing remains a leading pressure point. In July 2025, California’s median home price reached $828,900, according to Redfin — more than double the median in Texas ($352,700) and significantly higher than in Arizona ($439,200) and Nevada ($465,200).

For families facing affordability challenges, the numbers alone make a compelling case to relocate.

California also levies a top state income tax rate of 13.3% on incomes over $1 million — the highest in the country.

By contrast, states like Texas and Nevada impose no state income tax, making them particularly attractive to high earners.

2. Political climate and lifestyle fit

Politics may not be the primary reason people move, but it increasingly factors into relocation decisions.

According to the Public Policy Institute of California (PPIC), residents who left the state between 2020 and 2024 were more likely to identify as Republican, while those moving in tended to lean Democratic.