Homeowners Are Quietly Leaving California For A More Affordable Neighboring State

People are unquestionably leaving California. From 2010 through 2024, the Public Policy Institute of California's (PPIC) analysis of American Community Survey data found that nearly 10 million people did so, with just slightly over 7 million moving into the state. More recently, 2025 marked the sixth year in the row that U-Haul calculated California experienced the greatest "out-migration" figures of any state. This trend is unsurprising, as California is one of the states with the highest costs of living, and residents are largely relocating to live more affordable lifestyles.

U.S. News & World Report ranks California dead last on its lists of states ordered by both general affordability and housing affordability. The PPIC also lists housing costs as a reason why people are leaving California, which the California Policy Lab backs up with specifics: It reported in March 2026 that people who leave California average $672 in savings on housing expenses in their new locale.

Per capita, the California Policy Lab reports that Californians most often leave their state to move to Nevada, and the states' housing costs illustrate why that might be: Looking at Zillow data in August 2026, the average home in California was valued at $773,735 in July 2026, while Nevada homes averaged $447,473 at the same point. Homeowners insurance costs are also more affordable in Nevada: According to Forbes, California homeowners pay an annual average of $2,097 to cover a $500,000 property. In Nevada, they pay $1,448 to insure homes of the same value — and this contrast carries over to other living costs as well.

In June 2026, LivingCost.org listed Nevada as 5% more expensive than the average U.S. locale, while California is 36% more expensive. However, where exactly you live in each state also impacts your spending, and Realtor.com reports many Californians are exploring moves to Las Vegas. In 2025, nearly one in four views of Las Vegas listings came from people in Los Angeles, while 8% of leads came from San Jose and 4% from Riverside. According to Salary.com, a single person can expect monthly costs of living of $2,598 in Las Vegas in 2026, compared to $3,529 in Los Angeles, $4,512 in San Jose, and $2,896 in Riverside.

Another incentive for people leaving California is that the state's progressive income tax rate ranges from 1% to 13.3%, depending on their income. Nevada, meanwhile, is one of the states without income tax. There is a sales tax in Nevada — though certain foods and medicines are usually exempted — with the base statewide rate set at 6.85%. Nevada counties can add their own additional sales tax rates. However, compared to the 7.25% to 11.25% local rates you'll find in California, much of Nevada is still cheaper in this regard.

Notably, Nevada can also be one of the states with the highest gas prices. As of August 24, 2026, GasBuddy lists it as the fifth-most-expensive in the country at an average cost of $4.76 per gallon.  However, even those prices are still a better deal than what you'll find in California, where GasBuddy reports prices average around $5.57 — the highest in the nation.