Why People Are Leaving California?

California is undoubtedly one of the most beautiful states in continental America. It boasts the best weather and one-of-a-kind geographic expanse.  It is blessed with a breathtaking coastline, majestic mountains, and a very beautiful desert country. Many well-maintained state parks welcome millions of visitors each year. It is perhaps the only state where folks can reach the mountain slopes, the inviting beaches, and the intriguing desert in less than two hours to enjoy a variety of sports and outdoor activities.

California is the most populous and the most influential state in the union. Its multi-ethnic and multi-racial population is tolerant, inclusive, and diverse. Minorities  are now the majority. Its culture promotes a harmonious and friendly atmosphere.

California is the economic engine of the nation. Globally the state ranks 6^th in the world economy, ahead of Brazil, Russia, and Italy. Rich in natural resources, the state is home to giant industrial, agricultural, defense, and financial sectors. The agricultural sector is one of the most productive in the entire globe and it is capable of feeding the nation. California boasts the largest and highly regarded public university system. It is home also to world-class private universities. Its vibrant spirit and entrepreneurial acumen have given birth to the mammoth high tech and biotech industries.

California has 53 Fortune 500 companies headquartered in the state including Apple, Google, Facebook, Amgen, Genentech Intel, Qualcomm, Netflix, Sanmina, and Advanced Micro Devices.

Why are then folks leaving?

There is a 40% negative gap between arrivals and departures from the state. It has been reported that the cost of a U-Haul in the San Francisco Bay area is around $ 4,000 one way out, and a mere $ 400 on the way in to the Golden State. Why? Supply and demand!

Some folks are fretting that the exit is starting to look like an exodus.

Why Many Leave?

There are many reasons. Some are more powerful than others. When more than one factor is involved the driving force to depart can be irresistible.

Congestion – the major metropolitan areas are clogged with ever increasing traffic. Folks spend several hours each day commuting to and from work. The state has failed to maintain the major highways, and is decades behind in the improvement of its public transport system.

Affordability – California is becoming too expensive for many people. Housing has become so costly that prevents folks from living close to their place of work. A one-bedroom apartment can cost upwards to $ 3,500 per month in the major cities. Buying a home is out of reach for many. Retirees are encouraged to sell their residence, cash in on their gain, and move to a lower cost state or foreign country.

Taxes – California is one of the 3-4 states in the union when it comes to taxation. The income tax rates already are the highest.  Property taxes have ballooned as a result of the ever-increasing valuation of real estate.  Sales tax system and special taxes attached to gasoline price lead the national prices. Thousands of wealthy Californians are moving across the state line to establish a residence that shelters them from the state’s heavy-duty income tax. Changes in the federal income tax are now limiting the amount of property taxes and mortgage interest people can claim. in their federal returns.

Politics  - California is a blue state, and a one party system to boot. Democrats enjoy a super majority in Sacramento. As a result, Democrats pass any laws they want, no matter how quirky or expensive. The public pension system has over a trillion dollars of unfunded liability. A financial bomb ready to explode if we get into another economic downturn. Several small and medium size cities have declared bankruptcy. Many who don’t share the progressive agenda are subtly encouraged to search for more friendly places to relocate.

Crime – California leads the nation in crimes statistics. Oakland and Stockton, for example, lead in murders. In San Francisco, 81,000 car burglaries were committed last year with only one apprehension. Drug use is widespread. With the three-strike law, state prisons are more than full. Leniency toward crimes committed by illegal aliens makes many voters angry and ready to vote with their feet.

Homelessness – It has been reported than 10% of the nation’s homeless live in California. Many homeless camps can be found under bridges and alleyways. Orange County recently moved the inhabitants of a 7-mile long encampment to shelters. Lack of sanitary facilities, forces the homeless to defecate in the open or in side streets. Panhandlers seem to be at all major intersections.

Inequality – The gap between the rich and the poor has grown to such a level that those who serve the rich must travel 2-3 hours per day to get there. Although the minimum wage has been raised by major cities, it is not sufficient for many to cover the cost of living in those cities. For a progressive state, it is shameful to espouse one philosophy of largesse while practicing another.

Pollution – The rapid growth of the population has magnified the level of pollution.  Rivers and aquifers once pristine are now contaminated and off limits. Although the Los Angeles area is in better condition than it was some 25-50 years ago, other areas lament the increase in smog. More cars means more pollution. More humans means more pollution. 

Quality of Life – When you add all these factors together, a scenario emerges that is not a pretty picture.  Folks, perhaps reluctantly, are forced to relocate. Other states now offer competitive job opportunities and a more affordable housing. As a result these states are becoming magnates for those willing to relocate.

All these factors listed above when they reach the tipping point make the cost of leaving less onerous than the cost of staying.

Then, Why Many Stay?

Many stay put because… best weather ever, geographic majesty, diversity, job opportunities, educational opportunities, recreational amenities, and a welcoming spirit. Others stay primarily for economic reasons. They cannot afford to leave.  For them the cost of moving elsewhere exceeds the cost of staying and the disruption that a move entails. Many stay because that is where they were born or where their extended family resides. A few stay because they fear the unknowns that come along with going to an unfamiliar place.

If the current trend continues, the state’s revenues will take a hit thus affecting the operating budget and the survival of the public employees pension system as we know it. Politicians must take affirmative actions to reverse the trend.