Californians fleeing to red states are driving up home prices and rents in their new cities, data shows
People leaving Los Angeles and California are raising the cost of living in some red states after years of relocating from the left-leaning state.
A new Los Angeles Times report on Sunday found that of the top 10 cities people have relocated to from Los Angeles and California, all 10 have seen the median rent and home prices increase faster than they have in Los Angeles, though prices overall were still cheaper.
The cities on the list included Nashville, Dallas, Austin, Houston, Phoenix and Atlanta from traditionally right-leaning states Tennessee, Texas, Arizona and Georgia. However, some blue cities such as Portland, Seattle, Las Vegas and Denver were also included in the data.
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According to research developed by the Council for Community & Economic Research (C2ER), all 10 cities saw a larger cost of living increase between 2020 and 2025 compared to Los Angeles, with some cities experiencing twice as much of an increase.
In a comment to the Los Angeles Times, Evan White, co-founder of the California Policy Lab, noted that “people were going to dramatically less expensive locations,” though the affordability gap appeared to be shrinking.
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“White’s research showed that those who leave California are much more likely to become homeowners in their new states. As homes in popular destinations for those fleeing California appreciate more quickly, selling a home in California to move elsewhere becomes less profitable,” the article read.
Data from Zillow was less conclusive, finding that only five out of the 10 cities saw a median rent increase by more than Los Angeles’ 29%. Zillow also showed that only six out of the 10 cities saw median home price increases higher than Los Angeles’ 45%, with Phoenix and Nashville home prices increasing by about 70%.
However, the report noted that all 10 cities were still considered more affordable than Los Angeles, with some by a wide margin.
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Meanwhile, city planners, such as Austin architect Chris Gannon, are hoping to balance out the population boom from incoming Californians with rising home costs for in-state residents.
“If there’s less Californians coming,” Gannon told the Los Angeles Times, “that’s probably better for the folks here because that means less competition.”
Fox News Digital reached out to the California Policy Lab for comment.
California continues to see large swaths of people moving out of the state, with Los Angeles County losing more than 54,000 residents between 2024 and 2025 alone. With higher prices and a looming billionaire wealth tax, the Golden State continues to see both working-class residents and wealthy business owners leaving for more affordable cities.
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