Nevada Gains Residents Because California is Losing Its Charm

Go East, Young Man, Go East!

So this is Nevada! Where's the beach?Photo byTyler CaseyonUnsplash

I'm originally from the cornfields of Nebraska and my entire youthful existance - growing up in the 60s - I thought of California as - the - place to be. It was the land of opportunity, the Beach Boys, and hot babes my momma always warned me about.

California back in the 60s was a groovy place to be. Today and quite unfortunately, the negative issues California residents face are outweighing its benefits. The glory days of growth and opportunity have changed dramatically in the Golden State.

States from Nevada to Florida are seeing an influx in California residents moving away to escape one problem or another.

Wildfires, mudslides, cost of living, inaffordable housing, the increasing in homelessness, and the daddy of them all, earthquakes that plaque the state.

Both Nevada and Arizona neighbor California, so, it only makes sense that people rather move a shorter the distance to a similar climate and landscapes. Unfortunately for California, this mass exodus is costing the state billions in future tax revenue.

A study by SmartAsset, reported that the young and rich (age between 26-35 with an annual income of $200k or more) were not choosing California as a place to live. In fact, it wasn't even on the top-ten list.

"People are moving to Arizona and Nevada primarily for the lower cost of living and plethora of job opportunities," Redfin Chief Economist Daryl Fairweather told FOX Business.

I live in Northern Nevada and have watched this area fluorish because of new home sales due to our lower taxes, great job opportunities, and reasonable housing costs. Most of my new neighbors are from the Bay Area or the LA area, and can't believe how cheap rent and home prices are.

According to Rocket Mortgage, Arizona and Nevada were in the top 12 states with the lowest property taxes.

The average annual tax rate in Nevada is $1,369.60. In Arizona, the rate is $2,519.82. Therefore, when you see California's average annual property tax rate, which is about $5,347.48, you can understand why people are moving out of state.

According to Redfin, Nevada home prices increased by 5.8% in June - compared to a year ago. The median home sale price in the Silver State is $461,700.

Arizona home prices only increased by 1.9% in June 2024 compared to a year ago. The median home price: $451,000.

Now when you look at the cost of homes in California and how they increased by 7.6% in June compared to last year. So, with a median selling price of $856,700, it is easy to understand why families are packing up the Buick and heading east, leaving the west behind.

References:

Fox 11 - California continues to lose residents to Arizona, Nevada | FOX 11 Los Angeles (foxla.com)

Smart Asset - https://smartasset.com/data-studies/where-young-rich-moving-2024