California is among the most expensive states in the nation for basic necessities like housing, food, gasoline and insurance. So, it’s no surprise that high costs are prompting people to consider leaving the Golden State – if they haven’t already.
A poll conducted this month by Emerson College and sponsored by KTLA’s parent company, Nexstar Media, questioned 1,000 likely California voters on issues including the economy, immigration policy, and the upcoming election.
About 56% of respondents said they have considered leaving California due to the high cost of living. About 37% said they had made tradeoffs between paying for food or utilities in the past month.
The survey found that 35% said they have made tradeoffs between paying for food and housing in the past month, and 26% have made tradeoffs between paying for food and prescription medications.
Depending on how you measure the cost of living, California ranks either first or among the top four most expensive states in the nation based on prices for goods and services.
It has the highest median single-family home price in the U.S., and California drivers pay more for gasoline than those in other states.
California’s population either stagnated or declined from 2019 to 2023, although it slightly increased to 39.1 million residents in 2024. Experts point to a slowing birth rate, a higher death rate during the pandemic, and lower immigration.
But the major driving factor, they say, is that Californians are leaving for more affordable states.
“California has remarkably high living costs, which are leading households to leave,” UCLA economics professor Lee Ohanian told KTLA. “The price of the median California home now exceeds $900,000, and many renters pay 50% or more of their pre-tax income in rent. Utilities and other energy costs are among the highest in the country.”
A recent ConsumerAffairs survey ranked California first in the nation in net outward migration, followed by New York, New Jersey and Illinois.
North Carolina, South Carolina, Florida, Texas and Tennessee have seen the highest net inward migration.
Ohanian says California faces a myriad of challenges that have contributed to higher costs and ultimately caused residents and businesses to leave.
“Lack of new housing construction keeps housing prices and rents high. New home construction has declined, even though we’ve spent billions to try to increase building. Gasoline costs are high because there is about 50% less refining capacity in the state compared to the 1980s, and because of high state gas taxes. Businesses are leaving because of the state’s tax and regulatory burdens,” Ohanian said.
Gov. Gavin Newsom consistently highlights the positives of living in California and its robust economy, and insists he is working toward addressing the affordability problem.
This week, he signed a law aimed at preventing gas price spikes by forcing oil companies to boost reserves for when refineries go offline for maintenance. In July, he ordered cities to “act with urgency” to clear homeless encampments, expressing frustration with the amount of money spent on the homelessness crisis and the lack of results.
Newsom’s administration has also targeted communities that resist or block efforts to build affordable housing mandated by state law, mostly notably Huntington Beach.
”The Governor is addressing affordability issues on multiple fronts, including gasoline price gouging that has cost consumers billions a year. And he will continue to prioritize affordability – from housing to home insurance to health care – to turn each California Dream into a reality,” Newsom’s office said in a statement to KTLA on Wednesday in response to the survey results.
KTLA consumer reporter David Lazarus sees life in California as a series of trade-offs.
“Yes, California has a relatively high cost of living. It also has a relatively high standard of living, and that’s a key reason many Californians may ponder leaving but never do,” Lazarus said. “The plain fact is, economically speaking, residents recognize that whatever frustrations may exist, California simply has more to offer than most other states.”
“That said, the frustrations people feel are real, and these have been challenging times for many households. The question thus becomes, would you feel fewer frustrations in Texas, say, or Florida? I’m not so sure that’s the case.”
