California, once hailed as a land of opportunity and innovation, is now grappling with an alarming talent drain. According to a new report by the National Association of Realtors (NAR), nearly 87,000 professionals left the Golden State in 2023, while just 69,000 chose to move in—a stark indication of the growing challenges facing one of America’s most populous states.
The mass exodus has become a familiar story. California’s sky-high taxes and exorbitant cost of living are driving professionals to greener—and more affordable—pastures. Where are they going? Texas, Arizona, and even Montana are emerging as magnets for talent. The Lone Star State, in particular, stands out: 14% of Californians who packed up in 2023 made Texas their new home.
It’s no wonder. Texas, like several states benefiting from California’s losses, boasts no state income tax and a significantly lower cost of living. For professionals tired of seeing their paychecks drained by Sacramento’s endless appetite for revenue, Texas offers a refreshing alternative.
The NAR report coincides with troubling news from the Bureau of Labor Statistics: California’s unemployment rate hit 5.4% last month, the second-highest in the nation, surpassed only by Nevada at 5.7%. This marks a worrying uptick from 5.3% in September and 5.1% a year ago, reflecting a state economy struggling to retain its vibrancy.
When jobs disappear and costs soar, people follow the opportunities. States like Arizona and Nevada, with their business-friendly environments and more favorable tax structures, are reaping the rewards. Arizona, for example, absorbed 9% of California’s departing professionals, while Nevada welcomed 7%.
One of the primary culprits behind this migration is California’s staggering housing crisis. Nadia Evangelou, a senior economist at the NAR, explained it bluntly: “The lack of affordable housing doesn’t just impact home buyers; it also affects the state’s ability to retain talent.”
In cities like San Francisco and Los Angeles, home prices and rental rates are enough to make even high earners reconsider their future in the state. Meanwhile, states like Montana, which has experienced rapid economic growth since the pandemic, are proving to be attractive alternatives.
California isn’t alone in losing professionals, but it leads the pack. Illinois reported a net migration loss of 4,598 professionals, followed by New Jersey with 1,810, and New York with 1,698. However, none compare to California’s net loss of over 18,000 workers.
For decades, California has been a beacon of innovation, creativity, and opportunity. But the state’s leadership seems determined to test how much residents can endure. Between oppressive taxes, sky-high housing costs, and a worsening job market, many Californians are saying enough is enough—and voting with their feet.
This trend is a clear indictment of progressive governance. Decades of policy decisions favoring high taxes, onerous regulations, and runaway spending have turned California into a cautionary tale. The solution isn’t more government intervention or superficial fixes; it’s a fundamental shift toward policies that prioritize economic freedom, lower taxes, and the kind of environment where families and businesses can thrive.
The Golden State has an opportunity to reverse course, but time is running out. As professionals continue to flee, California risks becoming a hollowed-out shell of its former glory—a state where only the ultra-wealthy and the subsidized can afford to live. For now, the exodus continues, and the question remains: will California learn before it’s too late?
