Gavin Newsom Grilled Over Soaring Cost of Living in California

Governor defends state's economic growth as families leave for more affordable areas

Published on Feb. 22, 2026

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In an interview with CNN's Dana Bash, California Governor Gavin Newsom was pressed on the state's high cost of living, which has led many families to leave for more affordable areas like Tennessee. Newsom touted the state's economic growth and dominance in key industries, but Bash pointed out that people are still struggling to afford basic necessities, like Newsom's own mother did.

Why it matters

The high cost of living in California, particularly for housing and utilities, has been driving residents to leave the state in search of more affordable areas to live. This trend raises concerns about the state's long-term economic and demographic outlook, as well as questions about the effectiveness of Newsom's policies in addressing the affordability crisis.

The details

During the interview, Newsom tried to brush off Bash's questions by highlighting California's economic growth and dominance in industries like tech and agriculture. However, Bash countered that families are still struggling to afford rent, homes, and the cost of raising a family. The numbers show a stark picture - over the past decade and a half, nearly 10 million people have left California for other parts of the US, while just over 7 million have moved in, resulting in a net domestic loss of roughly 3 million. California prices were about 11% higher than the national average in 2024, with housing costs running 53% above the US norm and utilities 60% higher.

  • Over the past decade and a half, nearly 10 million people have left California for elsewhere in the US.
  • Between 2010 and 2024, California has seen a net domestic loss of roughly 3 million residents.
  • In 2024, California prices were about 11% higher than the national average.

The players

Gavin Newsom

The current Governor of California, who was being interviewed about the state's high cost of living.

Dana Bash

A CNN anchor who interviewed Governor Newsom and pressed him on the affordability crisis in California.

Steve Hilton

A Republican gubernatorial candidate who criticized Newsom's claims of a penny-pinching upbringing, arguing that the Newsom and Brown families have been "trading political favors and lucrative business deals ever since."

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What they’re saying

“California has the highest cost of living in the US, 11% above the national average. Families are leaving because they can't afford rent, a home, or to raise a family.”

— Dana Bash, CNN Anchor (CNN)

“People are still struggling to afford things, like your mom was.”

— Dana Bash, CNN Anchor (CNN)

“We've had hundreds of thousands move into California in the last two, three years. We dominate in every key industry — AI, quantum, robotics. We dominate in [agriculture].”

— Gavin Newsom, Governor of California (CNN)

What’s next

The governor's office has not indicated any specific plans to address the high cost of living in California, but the issue is likely to remain a key focus for both Newsom and his political opponents as the state grapples with this ongoing challenge.

The takeaway

The high cost of living in California, particularly for housing and utilities, has become a major concern for many residents, leading to an exodus of people leaving the state for more affordable areas. While Newsom touts the state's economic growth, his responses suggest he is struggling to effectively address the affordability crisis that is impacting families across California.