California saw the largest exodus of professionals in 2023, as revealed by a recent survey conducted by the National Association of Realtors. Approximately 87,000 individuals left the state, while only 69,000 relocated to California, resulting in a significant net loss of residents.
Workers are finding it increasingly difficult to afford housing in expensive cities such as San Francisco and Los Angeles, leading them to consider relocating to more affordable states like Texas and Arizona. The high cost of living in these areas, combined with the skyrocketing housing expenses, has prompted many workers to seek out more affordable alternatives elsewhere.
California’s high state income tax remains a significant concern, prompting many residents to relocate to states with more favorable tax systems. Texas, with its 14% state income tax rate, Arizona with a 9% rate, and Washington with an 8% rate, are among the popular destinations for those looking to minimize their tax burdens.
Virginia, Tennessee, and Florida witnessed a significant surge in employment changes, particularly in the southern states. Likewise, New York and Illinois also encountered job losses during this period.