Without necessarily glaring into an orb, many Californians predict a bleak future for the state. These sentiments are reported to be a product of California’s present economic realities.
Beyond sentiments, some Californians are already taking tangible steps to escape the woes still to come. Interestingly, the decline does not apply to the middle class alone. Even some celebrities are moving out of their Beverly Hills mansion.
A Fading Tale of California
California was a prime location for families looking to nail the American Dream. However, Rising rent prices and other day-to-day expenses are starting to eat deep into residents’ income.
So much that studies have revealed that some niche occupants of California are cutting down on spending on some basic necessities.
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Bad PR of California is Having a Multiplier Effect
The law of supply and demand is seemingly tight-handing Californians because as the price of basic amenities increases, they cut down on or outrightly remove some other expense.
These reports are having a negative effect on California’s economic prospects. Residents are leaving the state, while families who were considering moving into the state are changing their minds.
How Will the Californian Administration Salvage the Situation?
Besides the upward trend of rent, well-paying jobs have become scarce. So, it has become difficult to ‘earn a living.’ As many as 30 percent of California residents are experiencing this challenge.
Economic experts have advised California Gov. Gavin Newsom to take prompt steps to get the situation under control. For example, his administration can start by reviewing the high tax burden.
A Bit of Statistics
Mark Baldassare led the study on the economic realities of California. According to their survey report, the next 12 months may turn out to be even more difficult for residents in the state.
Unlike the trend from some years ago, many Californians now worry about the difficulty of obtaining cheap housing and groceries. Unfortunately, it may be unrealistic for California retirees to rely on their 401k savings.
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Ex-Californians take to Social Media
The word has gone around, as many California residents have taken to social media to voice their plight. Naturally, when someone who has been planning to move to the state sees such a post, they get discouraged.
So, California’s recent popularity ratings have gone down the drain. Even those who can afford such high odds would go for a cheaper state instead.
Battling with The Highest Odds
For example, a computer engineer who moved out of California cited the state’s relatively high price of groceries. He spends over $5 daily just to maintain a diet of plant-based milk.
According to RentCafe, a listing site for real estate, Californians pay relatively higher for necessities. For example, utilities, like power, gas, and water, are 21 percent higher than the national average, while rent is 200 percent of the national average.
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Die-hard Californians
Although most Californians, even the wealthy, are crying the blues about the cost of living a decent life in the state, some people are resolute and sentimental about remaining there.
For example, an X user claims they can’t fathom leaving the state. “Yes, things are grievously expensive, but I’d rather remain here; if just for the love of the beach in my backyard,” he said.
Reduced to Counting Pennies
Also, a PPIC survey from last month took a sample of 2,250 adults from the population of California resident population. Their survey responses made it clear that most Californians have lost faith in the state’s economy getting any better soon.
Californians are skipping or rationing meals; many are trying out home remedies for ailments instead of visiting the doctor, and a handful struggle to pay the bills.
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First Influx, Now Outflux
Throughout the 20th century, California was a ‘promise land’ for many Americans and migrants, and that period saw a large influx of people into the state. The inflow peaked in 2019/2020 and has since started declining.
In fact, records show that about 340,000 Californians relocated to neighboring states, like Texas and Arizona, last year. Those states have cheaper taxes and homes.
Six-figure Earners are Also Taking Off
The cited figure of residents that California lost to other states is not limited to low-income earners. Some Hollywood celebrities have also moved.
While buying groceries and paying the bills may not be a problem for high-earning celebrities like Mark Wahlberg, they have cited an uptick in crime rates in the state. So, Wahlberg put his Beverly Hills mansion up for sale and moved his family to Nevada.
Celebrities are Seeking Better Options
Joe Rogan is another celebrity to have cut his losses with California. He mentioned that the state has become too overcrowded for his liking, prompting him to move to Texas.
Celebrities like actress Hillary Swank, techpreneur Elon Musk, Dean Cain, Matt Damon, and Rod Stewart are among the milieu that recently moved out of California.
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