California's median home price surged to $828,900 in July 2025, far exceeding prices in Texas, Arizona, and Nevada, creating strong affordability pressures. The state imposes a top income tax rate of 13.3% on incomes over $1 million, while states like Texas and Nevada have no state income tax, attracting high earners. Political alignment influences moves: those leaving 2020–2024 were likelier to identify as Republican, while inbound residents leaned Democratic. Remote and hybrid work enabled more residents, particularly high earners, to relocate to neighboring affordable states, and the trend persists despite some office returns.
In July 2025, California's median home price reached $828,900, according to Redfin - more than double the median in Texas ($352,700) and significantly higher than in Arizona ($439,200) and Nevada ($465,200). For families facing affordability challenges, the numbers alone make a compelling case to relocate. California also levies a top state income tax rate of 13.3% on incomes over $1 million - the highest in the country.
Politics may not be the primary reason people move, but it increasingly factors into relocation decisions. According to the Public Policy Institute of California (PPIC), residents who left the state between 2020 and 2024 were more likely to identify as Republican, while those moving in tended to lean Democratic. Even when finances or family are the main drivers, a state's political climate can influence where someone chooses to settle - especially when other factors are comparable.
Before 2020, high housing costs kept many Californians tied to urban job centers. Since the pandemic ushered in remote and hybrid work, more residents have taken the opportunity to relocate. According to data from the Public Policy Institute of California, outbound migration among high earners has tilted heavily toward neighboring states like Arizona, Idaho, Nevada, and Oregon which offer more affordable housing markets. Although this trend has cooled slightly as employers call workers back to the office, it's unlikely to disappear anytime soon.
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