As the median home price has crept over $800,000, the benefits of living in California no longer outweigh the costs for an increasing number of Californians.[1] Since 1990, more than 3.8 million people have left the state than have moved in—slightly less than the total population of the city of Los Angeles.[2]

According to the IRS, net domestic and foreign outmigration increased to over 263,000 in 2020, up from just under 168,000 in 2019.

To keep the workers who keep its cities running, California needs more naturally affordable housing. To this end, the American Enterprise Institute is hosting a series of conferences throughout California to discuss how cities can create affordable and economically vibrant neighborhoods where families can put down roots.

California’s ability to remain economically competitive, fund quality public services, and maintain livable communities will be compromised if the state is unable to retain residents that wish to stay. By implementing Light Touch Density — the development of single-family homes with 1 to 4 units — housing can be built that stems the migration tide. According to a recent AEI study, as the number of housing units per acre built increases, the cost of those individual housing units decreases, directly easing cost of living concerns for those considering departing for more affordable regions. A better future for California requires more economical housing and the recently passed SB 9 and 10 are  a course correction.

To access our net migration data, click here.

[1] California Department of Finance, Finance Bulletin, August 2022.

[2] We use IRS tax exemptions to estimate annual and cumulative net migration as it closely tracks with census data.

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