California is a big state with plenty of benefits going for it, and you can plainly see the attraction for the Golden State in its statewide demand for real estate. But like any major upswing, there will be some degree of backlash. You may have heard about California migration before, or the reality of homeowners and renters alike getting fed up with the cost of living and hightailing it to a more welcoming state. See what that really looks like, and how it’s likely to affect the market. 

The 2018 Drop 

There is some truth in California migration as seen in the documented drop of 2018. The state saw an influx of people entering from other countries, but an even greater decrease in former residents leaving the state. About 156,000 people changed their address to a different state that year. They may have headed to states like Texas and Idaho, areas that give homeowners more perks and come complete with reduced prices on everything from groceries to gas. With around 38 million in the state though, the decrease has hardly been dramatic. 

Population Increases 

California’s population is still on the rise overall, even if the rate at which it’s progressing is not as high as the national average. However, this is attributed to the number of births in the state as opposed to new real estate buyers flooding the property market. When it comes to the international crowd, California took in 117,800 new residents in 2018, making it second in the nation (just behind Florida).  

Property Trends 

The interest from foreign countries is likely why we haven’t seen plunging real estate values, despite migration out of the state. Property sellers who want to optimize their home sale can make an effort to learn more about the culture of the most likely buyers in their area. For example, undocumented workers are still allowed to purchase homes in the state, and it’s likely that more will do so as immigration reform progresses. In fact, we may see the number of undocumented homeowners in the state jump from 17% to 33% in just the next few years. 

The truth of the matter is that California is a state of transition. The rise in the cost of living and housing has caused a number of adverse effects, including migration and a rise in the homeless population. However, buyers don’t necessarily need to fear that their home values will crash and burn due to migration. This state offers so much to homeowners, including the chance to be a part of a culturally diverse and vibrant landscape. According to the numbers, that’s unlikely to lose its appeal anytime soon.