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With its beautiful weather, breathtaking coastlines and vibrant culture, California has always held a special allure. But according to Don Peebles — founder, chairman and CEO of real estate investment and development firm The Peebles Corporation — the Golden State’s appeal is rapidly fading as residents pack up and head for the exits.
“California, and especially Southern California, is the most difficult place to do business in the United States,” he stated bluntly in a Fox Business interview. “We were trying to build a $1.6 billion development in downtown LA, and stuck with it during the COVID crisis, and yet we could get no support from the government.”
Peebles didn’t mince words, arguing that the state’s policies “were hurting businesses.”
He also pointed to the growing wave of people leaving California.
“People are fleeing, they have given up, and they're going to other places,” he said. “We're going to see more of an exodus out of California, because the quality of life has diminished as well.”
Talk of a California exodus gained momentum during the pandemic, and although the pace has slowed, the outflow of residents hasn’t stopped.
According to the latest U.S. Census Bureau data on state-to-state migration flows, 690,127 people left California for another state in 2023 — following an even larger outflow of 817,669 residents the year before.
Where did they go?
Texas topped the list. In 2023, 93,970 Californians relocated to the Lone Star State. In fact, Texas has consistently been the most popular destination for those leaving California:
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107,546 Californians moved there in 2021
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102,442 more followed in 2022
Arizona and Florida were also major draws, attracting 54,222 and 39,052 former Californians, respectively, during the most recent reporting period.
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There are many theories about why so many Californians are leaving. High taxes are often cited — for example, neither Texas nor Florida imposes a state income tax. But perhaps just as important is the sky-high cost of living.
