Californians relocating out of state cut housing costs by $672 a month and boost odds of owning a home, study finds
A California Policy Lab analysis finds Californians who moved out of state saved an average of $672 per month on housing and were 48% more likely to own a home within seven years, tracking moves from 2016–2025.
- Average housing savings: Movers cut monthly housing costs by about $672 on average.
- Homeownership lift: Leaving California increased an individual’s chance of homeownership by 48% (an 11-point rise after seven years).
- Rent declines: Renters who left saw median rents fall roughly 30% (~$631/month).
- Where they go: Largest net outflows per 10,000 were to Nevada, Idaho, Oregon and Arizona.
Why the move matters: housing cost savings and homeownership
The California Policy Lab tracked anonymous household data from 2016–2025 and measured monthly housing costs broadly — mortgage or rent plus utilities, property taxes and insurance — to reflect the full monthly burden. Movers paid an average of $2,376 in their California neighborhoods versus $1,705 in destination neighborhoods, producing an average saving of $672 per month.
That reduction can free cash for education, retirement, small business investment or debt repayment. Renters saw median rents fall about 30% (roughly $631 per month), while median home prices in destination neighborhoods were about $396,000 lower — roughly half the price of what they left behind (Fox Business).
Homeownership outcomes and long-term gains
The CPL tracked the same households over time and found that destination neighborhoods had a 60% homeownership rate compared with 53% in the California neighborhoods many departed. For individuals, the probability of becoming a homeowner increased by 48% (an 11 percentage‑point rise) seven years after leaving California. By comparison, arrivals to California saw a smaller seven‑year ownership increase (~27%, or six points) (CPL presentation; Fox Business).
“Destination neighborhoods are half as expensive,” said CPL Executive Director Evan White, noting that lower prices make homebuying far more attainable for many families (CPL presentation).
Where Californians are going
Most moves remain regional. Net migration outflows per 10,000 Californians (2016–2025) were highest to:
- Nevada: +81 per 10,000
- Idaho: +64 per 10,000
- Oregon: +37 per 10,000
- Arizona: +36 per 10,000
- Texas: +11; Tennessee: +13; Florida: +4
The pattern shows many people choose lower-cost neighboring states where housing markets and daily costs are more affordable, and savings on housing typically outweigh slightly lower incomes in destination areas (Fox Business).
Broader cost picture and causes of moves
Housing is one major factor, but California’s overall cost of living intensifies pressure on households: grocery prices run about 11% higher, gas about 40% higher, and utilities roughly 61% higher in many parts of the state. Those differences help explain why residents leave despite local economic opportunities (Fox Business).
Policy responses suggested by experts
Experts and the CPL presentation emphasize supply‑side solutions to restore affordability:
- Boost housing production through innovative construction methods and incentives.
- Reduce development and permit fees and streamline approvals.
- Target funding for affordable/workforce housing and revise zoning and code reform to encourage lower‑cost building methods (CPL presentation).
Implications for Huntington Beach, California
Economic impact: Local residents weighing a move can expect the kind of monthly savings documented by the CPL — roughly $672 on average — which translates to thousands annually and can meaningfully improve household balance sheets.
Housing market and local businesses: If middle‑income households leave, Huntington Beach could see weaker demand for entry‑level homes and reduced consumer spending at local shops and services. Trades and service providers tied to homebuying activity may also feel slower growth.
Political and policy consequences: For conservative audiences, the study reinforces supply‑focused reforms: revisiting local fees, streamlining permitting, and encouraging affordable building technologies align with market‑driven approaches favored by many residents (CPL presentation).
Social effects and community life
Families leaving for cheaper housing often gain larger homes, lower monthly bills and higher likelihood of homeownership — outcomes that can strengthen family finances but may alter community ties, volunteer networks and participation in local organizations and churches.
Practical applications for residents
- Homebuyers: Consider the higher ownership rates and much lower median prices outside California when weighing relocation (Realtor.com).
- Renters: Moving can cut rent by roughly 30% on average — a potential lifeline for tight budgets (Fox Business).
- Local leaders: Focus on supply‑side reforms — lower fees, faster permits and support for new construction methods — to retain more families without compromising fiscal responsibility (CPL presentation).
Local data point
The CPL tracking showed Sacramento County lost a net 71,100 residents from 2016–2025 (269,600 left vs. 198,500 arrivals), a concrete example of the outflow documented in the broader analysis (CPL presentation).
