Leaving California Could Pay Off for Aspiring Homeowners, UC Berkeley Study Finds

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A new study from UC Berkeley reveals that Californians who left the state for more affordable communities in other states improved their financial footing and were 48% more likely to own a home after seven years compared to people who stayed in California. The study found that the average person leaving California is not poor in 'absolute' terms, but they are worse off financially than their neighbors, and many are leaving higher-income neighborhoods to attain a better quality of life they cannot afford in California.

Why it matters

The study provides insight into the growing trend of Californians leaving the state due to the high cost of living, and how these moves are impacting their financial situations and homeownership prospects. As California's population growth slows, this could have broader implications for the state's political clout and representation at the national level.

The details

The study, conducted by researchers at the California Policy Lab at UC Berkeley, used anonymized credit bureau data spanning the last decade to analyze the financial and housing outcomes of Californians who left the state. They found that on average, Californians who left for more affordable communities in other states were 48% more likely to own a home within seven years compared to those who stayed in California. The report also compares pre-pandemic and post-pandemic migration trends, noting that the share of movers leaving higher-income neighborhoods in California has increased from 34% to 40% since the pandemic.

• The study was conducted using data spanning the last decade.
• The report compares pre-pandemic and post-pandemic migration trends.

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