For years, Californians leaving the state was treated like a trend. Now, for many families, it’s becoming a financial strategy.

Between sky-high housing costs, rising utility bills, expensive groceries, and some of the nation’s highest gas prices, more residents are deciding they simply can’t make the numbers work anymore. According to a recent report from the California Policy Lab, people leaving California are relocating to significantly more affordable areas and many are seeing major financial improvements after moving.

On average, Californians who leave move to neighborhoods where housing costs are about $672 cheaper per month. After several years, they’re also far more likely to become homeowners than people who stay behind.

And despite the headlines, most former Californians aren’t heading across the country. They’re moving to nearby states where housing feels attainable, daily expenses are lower, and they can still stay relatively close to home.

Here are the top states Californians are moving to right now.

highway 805 — Image Credit: Deposit Photos

1. Nevada

Nevada continues to rank as the biggest destination for Californians leaving the state. Las Vegas, Henderson, and Reno have become especially popular because housing costs remain far lower than in many California cities, while there’s also no state income tax.

For many movers, Nevada offers a familiar Western lifestyle without California’s crushing housing prices. The California Policy Lab found that Nevada receives more Californians per capita than any other state.

2. Idaho

Idaho has quietly become one of the fastest-growing destinations for former Californians. Cities like Boise exploded in popularity during and after the pandemic, thanks to lower home prices, outdoor recreation, and a slower pace of life.

Many former Californians say Idaho offers something they can no longer find at home: the realistic possibility of buying property without needing a massive income.

3. Oregon

Oregon continues attracting Californians who want to stay on the West Coast while lowering their cost of living. Portland and the surrounding areas remain popular, along with smaller communities offering more affordable housing and access to nature.

For some movers, Oregon feels culturally similar to California but less financially overwhelming. The proximity also makes it easier to stay connected to family and work opportunities back home.

4. Arizona

Arizona remains one of the most consistent relocation destinations for Californians, especially retirees and remote workers. Phoenix suburbs, Tucson, and smaller desert communities continue to attract people seeking cheaper housing and lower taxes.

Many movers say Arizona offers newer homes and far more space for the price compared to California markets. Even with rising home prices, many still find it significantly more affordable overall.

5. Tennessee

Tennessee saw a major influx of Californians during the pandemic, and interest remains strong. Cities like Nashville and its surrounding suburbs appeal to people seeking lower taxes, more affordable homes, and growing job markets.

The report noted that Tennessee became one of the stronger out-of-state destinations even though it’s farther away than many Western states. For some Californians, the lower overall cost of living outweighs the distance.

6. Texas

Despite constantly dominating headlines, Texas actually ranks lower than many people expect when adjusted per capita. Still, major cities like Austin, Dallas, and Houston continue to draw Californians seeking lower housing costs and business opportunities.

Some movers are attracted by the lack of state income tax and larger homes, though others say rising property taxes and extreme summer heat were bigger adjustments than expected.

7. Washington

Washington remains a destination for Californians wanting strong job opportunities while staying on the West Coast. Seattle’s tech industry continues attracting workers, though affordability challenges there have also grown substantially.

Still, some Californians prefer Washington’s climate, outdoor lifestyle, and proximity to family over relocating farther inland.

8. Utah

Utah has become increasingly attractive for families and remote workers seeking lower housing costs and outdoor-focused living. Areas around Salt Lake City and Provo continue seeing growth from former California residents.

Many movers mention cleaner neighborhoods, newer suburban developments, and easier access to homeownership as major draws.

9. Florida

Florida receives plenty of attention in migration conversations, but the California Policy Lab report found it ranks lower than most people assume. Even so, the state continues attracting retirees and remote workers interested in warmer weather and no state income tax.

For some Californians, Florida represents a complete lifestyle reset, though rising insurance costs and hurricane concerns have become bigger considerations recently.

10. Wyoming

Wyoming experienced one of the biggest pandemic-era increases in the number of Californians moving in, particularly among remote workers seeking space and lower population density. While some of that trend has cooled, interest in rural and mountain communities remains elevated compared to pre-pandemic years.

Many people drawn to Wyoming sought quieter living, lower housing costs, and access to outdoor recreation, all far from crowded urban areas.

Why So Many Californians Are Leaving

The biggest driver behind these moves is affordability. California residents now face housing costs that far outpace incomes in many parts of the state, while essentials like groceries, utilities, and gasoline remain substantially more expensive than national averages.

The report also found that many people leaving California appear financially strained compared to others in their own neighborhoods. On average, movers had higher student debt, lower credit scores, and lower homeownership rates than neighbors who stayed.