I don’t think this is true…Knowing people who have actually left CA for TX, NV as well…it’s actually upper middle class people who move since the tax hit affects them far more. You can only deduct so much with a mortgage and if you’re making upwards of 200-300k or 500k+, that 30k or more per year is pretty much “free” housing as well as your retirement all done…probably.
As great as CA is, I feel unless you had to be here (mostly for tech to try to be a millionaire fast), it’s just not worth it. I know plenty of people who didn’t move as well being from the bay area, but ALL those people I knew had family who helped them buy a home (all 1 mil+)…and with their parents and everyone they know in the same boat, they don’t really need to move since they own homes already.
Affordable housing in a decent area with good schools is the number 1 killer for people wanting to stay and as people start families and have kids, CA (especially bay area/LA) makes very little sense. If you lived in silicon valley, making 150k probably puts you in the “poor” category honestly. SD is a bit more affordable for what you get, but it’s still pricey.
I’d recommend anyone who is starting their career to consider building a base/career/network in places where there is good job growth and companies are hiring, but is more affordable.
I’m still in CA cause I’m actually poor and get the handouts and pay little/no CA tax at all so they can raise taxes to 50% for all I care, but people are leaving I think, and these are people who actually are paying the high tax bill.
