Key facts
- People leaving California are driving up housing costs in some red states.
- 10 cities popular with California relocators saw faster rent and home price increases than Los Angeles.
- Some cities experienced twice the cost of living increase compared to Los Angeles between 2020 and 2025.
- Home price increases in Phoenix and Nashville were around 70%, higher than Los Angeles' 45%.
- Relocators from California are more likely to become homeowners in their new states.
The migration of residents from high-cost California to more affordable states is creating ripple effects in housing markets. As people move, they are not only seeking lower living expenses but also contributing to increased demand, which in turn drives up home prices and rents in their new locations. This phenomenon highlights the interconnectedness of housing markets across the US and the impact of demographic shifts on local economies.