Californians fleeing to red states are driving up home prices and rents in their new cities, data shows
People leaving Los Angeles and California were found to be raising the cost of living in popular red-state destinations like Nashville, Dallas, Austin and Phoenix.
Californians fleeing to red states are driving up home prices and rents in their new cities, data shows People relocating from Los Angeles and California have contributed to faster increases in median rent and home prices in their new destinations, even though these cities generally remain more affordable than Los Angeles. These rising costs are creating competition for in-state residents, with some city planners hoping for a slowdown in new arrivals. The trend persists as California continues to experience significant population outflow.
- People moving from Los Angeles and California are causing cost of living increases in their new cities.
- The top 10 cities people relocated to from California saw faster rent and home price increases than Los Angeles between 2020 and 2025.
- Popular destinations include Nashville, Dallas, Austin, Houston, Phoenix, and Atlanta, along with blue cities like Portland and Seattle.
- While prices are increasing rapidly, the 10 cities are still considered more affordable than Los Angeles overall.
- The affordability gap between California and these new destinations is shrinking.
- California continues to see significant resident outflow, with Los Angeles County losing over 54,000 residents recently.
- Rising home costs in new destinations can make selling a California home less profitable for those moving out.
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