Thousands Of Workers Left CA In 2024: Here's Where They Went

CALIFORNIA — A new report found that droves of California workers vacated the nation's most populous state — known for its titanic film and tech industries — for more affordable states.

Some 87,000 workers left California last year, according to the National Assn. of Realtors, which analyzed U.S. census data from the third quarter of 2023. Meanwhile, the state only gained 69,000 new workers.

The report was published last month.

Workers reportedly ditched California for states that have a lower cost of living. The most popular destinations for Golden Staters were Texas, Arizona, Washington and Nevada, according to the report.

While California's job market remains strong, the state is facing the challenge of retaining workers due to high housing costs, particularly in areas like San Francisco and Los Angeles.

According to Zillow, the median rent for a one-bedroom apartment in California is $2,150. In Arizona, the median rent for a one-bedroom is $1,296. In Texas, that median drops even more to $1,200.

Texas is a "major draw" for those relocating due to its business-friendly policies, growing job sectors and of course, no state income tax. Austin, Dallas and Houston — cities that are significantly more affordable than any California city — have become major refuges for job switchers leaving California.

Some 94,000 Californians moved to Texas between 2022 and 2023, Business Insider reported.

"The lack of affordable housing doesn’t just impact homebuyers. It also affects the state’s ability to retain talent," Nadia Evangelou, a senior economist for the Realtors Association, told the Los Angeles Times. "This trend is concerning because it reflects the economic strain that high housing costs place on professionals, even those with stable incomes."

What's more, the report says that California's high state income taxes have pushed workers to states with "more favorable" tax policies.

"In California, there are so many rules and regulations that change constantly," Jeffrey VonderHaar, an owner of a medical-equipment business told Business Insider. "The taxes are never-ending."

Of the 87,000 who left, 14% of professionals found jobs in Texas, 9% in Arizona; 8% in Washington, and 7% in Nevada, according to the group.

According to the report, California lost more workers than any other state. The group analyzed 18,485 job switchers. New York was another state that saw a large outflow of workers seeking more affordable living.

Meanwhile, states like Virginia, Texas, Georgia, South Carolina and Tennessee gained the most workers over this period. The report points to their strong job markets, lower living costs and "attractive" business environments.

Virginia attracted the largest number of new workers, 7,191, in 2023, with most job switchers coming from Maryland and the District of Columbia, both of which border the state. Texas came in second, drawing 7,036 job migrants.

But the group said it's important to note that while these migration numbers are useful for looking at overall movement, they may not necessarily capture the full picture.

Since larger states naturally have more people moving out, the group also analyzed "the percentage of people moving into a state relative to all job movers in that state." South Carolina, Maine, Montana and Tennesee were found to be the most attractive places.