High Taxes and Expensive Housing Forces Californians to Relocate

An increasing number of Californians are leaving their 'beautiful weather' state to move to places where there are low taxes and cheaper housing. Expensive rents and sky-high taxation have forced them to move to more affordable states like Texas, Arizona, and Nevada. The US Census Bureau concurs. As per the data gleaned from its American Community Survey, lower-income residents of the state are moving out. The topmost reason for such domestic migration is the high costs of housing. No wonder a substantial number of Californians want their government to repeal the new gas tax. The latter spiked fees by about 40 percent.

Super high rent

The average monthly rent for a one-bedroom Los Angeles apartment comes to $2,249. The same place can be had in San Francisco by paying $3,400. To compare, a one-bedroom apartment in Las Vegas needs only $925. In Phoenix, the renter needs to pay $945. According to National Association of Realtors, the median price of California property all over the state comes to $550,990. To compare, the figure comes to $247,800 all over the United States.

Avoiding taxes and the wish to return

Data extracted from the Internal Revenue Service (IRS) shows the leavers include middle-age and middle-income residents. In short, net migration out of the state continues to increase at a fast clip. There is also the danger that higher-income people may also move out of the state. This is a possibility as the federal tax overhaul by the GOP  will certainly have the fallout of a few taxpayers in California losing from local tax and state tax deduction gap. These people will opt to leave instead of paying the tax. California has long come under intense criticism as one of the most taxed states in the US. Governor Jerry Brown in 2017 gave his signature to an increase of 12 cents for every gallon increase in the gasoline excise tax imposed in the state. The 40 percent hike resulted in the tax being a massive 41.7 cents for every gallon. Drivers in the state pay the most in averages for gasoline. California comes second after Hawaii.

Many former Californians want to return to the state after they moved out years ago. They feel discouraged to do so due to the steep monthly rental prices. San Francisco is the priciest rental market in the United States. New York follows in the second position.

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