Tips For Moving To California (CA)

For people considering a big move, California is often at the top of their list. It has a combination of beautiful scenery, endless miles of ocean, and popular views. It’s home to some of the best outdoor cities in the U.S., as well as booming industries like tech and entertainment.

But there are also some downsides to consider when debating moving to California. To help you decide if The Golden State is right for you, we’ve broken down some of the demographics, pros and cons, top cities to live in and more.

What It’s Like Living In The Golden State

When we picture California, many of us picture beaches, surfers and sun. And while that’s part of what makes up California, it’s far from the only thing. The state also has a booming economy – it’s the largest of any state and larger than most countries. That means there are plenty of job opportunities, which is a major factor when deciding where to live.

The state also places a high level of importance on environmentalism. The state is a leader in clean energy and home to some of the most sustainable cities in the U.S.

If you’re considering a move to California, it might be helpful to learn who lives there and what type of lives Californians lead. Below you’ll find some basic statistics, especially as it relates to the state’s residents and economy.

• Population: 39,029,342
• Median age: 7 years
• Unemployment rate: 1%
• Poverty rate: 3%
• Median household income: $84,097
• Median home price: $716,909
• Median rent price: $1,698

Should You Move To California? What To Expect

It probably doesn’t come as much of a surprise that California has a lot to offer its residents. The state has the highest population in the country and has more than ten million more people than the second-most populous.

That being said, living in California has its downsides. In this section, we’ll talk about some of the reasons why you might want California to be your next home, as well as some of the characteristics that might turn you away.

Beautiful, Sunny Weather

The weather in California is one of the things that makes the state so appealing. Throughout the year, the temperature most often sits between 29 degrees and 87 degrees. The state’s average temperature ranges from 36 degrees in January to 78 degrees in July.

Of course, the weather depends heavily on where in the state you’ll live. Some parts of the state experience a colder winter with snow, while others enjoy warm weather all year round.

In addition to its warm weather, California also has relatively little precipitation. The state gets about 22 inches of rain per year, which is well below the national average. There’s an average of 258 sunny days per year compared with 205 for the country overall.

Generally speaking, this beautiful weather is a benefit to its residents. However, the low precipitation also contributes to the state’s water shortages.

Natural Disaster Risks

Californians experience a greater risk of natural disasters than residents of many other states. One of the most notable examples is wildfires. The state has an average of 345 wildfires per year that cover an average of 1,486 acres annually.

Another natural disaster Californians can experience is earthquakes. The state typically has two to three earthquakes each year of a magnitude 5.5 or higher, which is large enough to cause moderate damage to structures.

The other most common natural disaster that tends to strike California is storms and flooding. While certain parts of the state are more vulnerable to flooding than others, every county in the state has had at least one declared flood disaster.

High Cost Of Living

California ranks fourth in the nation (and third of all states) for the highest cost of living, falling only behind Hawaii, the District of Columbia and Massachusetts. It’s also home to several of the most expensive cities in the U.S.

Here are a few things that contribute to that high cost:

• Housing (renting and buying): We’ve already talked a bit about housing costs in California, but we should also discuss how those compare to the national average. As we mentioned, the average home price in California is approximately $716,900. That’s more than twice as expensive as the national average. As for rental costs, California’s median is more than 37% higher than the United States overall.
• Utilities: California is actually in the bottom half of states for the cost of utilities. As of 2020, California residents paid about $116.94 per month for electricity and $77.20 per month for gas.
• Groceries: California ranks near the middle of states when it comes to food costs. According to the Bureau of Economic Analysis, the average annual food spending per person (not including restaurants) was about $3,630. That comes to just over $300 per month. California’s per-person grocery costs are slightly higher than the national average of $3,480.
• Transportation: According to MIT’s Living Wage Calculator, the cost of transportation ranges from $5,316 for a single childless adult to $15,073 for a family with two working adults and three children. Your transportation costs will depend heavily on where you live. Certain parts of the state have effective public transportation, while others don’t.
• Health care: According to the Bureau of Economy Analysis, the average Californian spends about $7,638 per year on health care costs, which is higher than the national average of $7,006. That being said, California also has one of the largest health care safety nets for residents. Medi-Cal offers low-cost health insurance to millions of people.
• Goods and services: Californians spend an average of $25,138 per year on all other personal consumption expenditures, according to the Bureau of Economic Analysis. This is compared to $23,302 for the nationwide average.

Plentiful Job Opportunities

As we mentioned, California has a booming state economy with many job opportunities. The state has an unemployment rate that’s slightly higher than the national average, but many industries are thriving there.

California is especially known for certain industries, which account for many of the state’s jobs. Of course, the state is known for being the home of Hollywood and the entertainment industry, with many film and TV jobs available in Los Angeles. It’s also the home of the technology industry in Silicon Valley.

Other major industries in California include manufacturing, agriculture, tourism and health care.

It’s also worth noting that while the cost of living is high compared to other states, so is the average salary. Californians make a median household income of $84,097, while the median for the country overall is just $69,021.

Heavy Traffic

Depending on where in California you live, you may be subject to heavy traffic. Of course, the state has many rural areas where traffic likely won’t be an issue. But the traffic in urban areas – especially Los Angeles – can be a pain.

In fact, Los Angeles ranks sixth in the United States for congested traffic, with San Francisco following closely behind in seventh place. San Diego also makes the list of the top 25 cities for traffic congestion.

Top Colleges And Universities

California is known for having some of the top colleges and universities in the country. The state has an excellent public university system that includes the University of California, Berkeley, the University of California, Los Angeles and the University of California, San Diego.

In addition to its public schools, California also has some of the best private universities in the country. It’s home to Stanford University, which is the third-best-ranked university in the country (tied with Harvard and Yale), according to U.S. News & World Report. It’s also home to the highly rated science and engineering school California Institute of Technology.

High Tax Rate

Unfortunately, California residents pay some of the highest tax rates in the country. The state charges the highest state income tax rate, which tops out at 13.3% for those earning $1 million or higher. For those making less than a million, rates range from 1% to 12.3%.

California is also in the top half of states for high property taxes. The average homeowner pays a rate of about 0.75% in property taxes, which amounts to an average property tax bill of several thousand dollars.

Finally, California has the highest sales taxes and the seventh-highest average combined rate between state and local sales taxes. Residents of the state pay a state sales tax of 7.25%, while the average local tax rate is another 1.57%.

Abundance Of Nature

One of the biggest selling points of California – and one of the reasons so many people choose to live there despite the high cost of living – is the abundance of nature and the beautiful views.

California is unique in that you can experience nearly every climate in a single state. You can travel just a few hours and find yourself in the desert, in snow-capped mountains, and at the ocean, which is lined with beautiful beaches.

California is also home to more national parks than any other state:

• Channel Islands National Park
• Death Valley National Park
• Joshua Tree National Park
• Kings Canyon National Park
• Lassen Volcanic National Park
• Pinnacles National Park
• Redwood National Park
• Sequoia National Park
• Yosemite National Park

Expensive Housing

If you’re hoping to buy a house in California, then you may have some sticker shock at the average housing price there. At $716,909, the average California home price is more than twice the national average.

And that doesn’t match the prices in some of the most expensive cities in the state. You’ll pay more than $873,000 for a house in San Diego, more than $890,000 in Los Angeles and a staggering $1.29 million in San Francisco.

Exciting Food Scene

California has one of the most diverse and exciting food scenes in the country. First, thanks to the many different cultures you’ll find in The Golden State, you’ll also find just about every type of food.

With much of the state being along the ocean, it probably comes as no surprise that California has excellent seafood. You can also head south and find authentic Mexican food, which makes sense, given the state shares a border with Mexico.

Not only does California have many food options, but it also has healthy food. In fact, one study found California to be the healthiest in the country.

Access To International Airports

If you enjoy travel, you’ll probably be happy in a state with easy airport access; there are more than a dozen major airports in the state. Los Angeles International Airport and San Francisco International airport are two of the top in the country.

Diversity Between Northern California And Southern California

We’ve already alluded to the fact that California has many different climates and cultures in one state. But it’s worth diving further into just how different parts of the state are.

Northern California, with its proximity to the Pacific Northwest, tends to have less sunshine and more gloom than the southern part of the state. It’s also not as famous for its beaches, despite also sitting along the ocean. However, it has slightly cooler weather and a mountainous terrain that many people enjoy.

Southern California, on the other hand, lives up to the vision many people have of the state, with its sandy beaches, constant sunshine, surfers and year-round summer.

Best Places To Move To In California

When planning for your big move, you’ll need to find the best place for your family. Below we’ll discuss some of the best places to live in California.

San Diego

San Diego is the second most populated city in California, with a population of nearly 1.4 million people. The city sits at the very southern tip of California, with the Pacific Ocean on one side and Tijuana, Mexico, on another.

San Diego is filled with plenty of attractions that, combined with its perfect weather, make it a popular tourist destination. But it also has plenty of great characteristics for someone who wants to live there. There are many booming industries. Additionally, the median household income is higher than in California overall, and the poverty rate is lower.

If you’re considering a move to California, be sure to check out homes for sale in San Diego and San Diego housing market trends.

Los Angeles

Los Angeles is the most populous city in California. It’s home to more than 3.8 million people, and that doesn’t even count the other cities attached to it. The Los Angeles area is incredibly diverse, you could choose to live in downtown LA and experience an urban lifestyle. Or you could travel just a short distance and find yourself along the ocean.

The city is known for many popular attractions, including Hollywood Boulevard, Venice Beach, theme parks, the giant Hollywood sign and more.

As for employment, there are many job opportunities and booming industries. However, the city does have a household income that’s about $15,000 lower than the state’s average, as well as a poverty rate that’s quite a bit higher.

If you’re considering a move to California, be sure to check out homes for sale in Los Angeles and Los Angeles housing market trends.

San Francisco

San Francisco is the fourth most populated city in California, with a population of about 815,000 people. It sits in the northern part of the state on the San Francisco Bay and San Pablo Bay (which is where the area gets its name as the “Bay Area.”)

San Francisco is known for several attractions, including the Golden Gate Bridge and Alcatraz. It’s also known for being home to Silicon Valley and the tech industry. For this reason, there are plenty of jobs and high wages available. The city has an average household income that’s 40% higher than the state overall and a poverty rate that’s lower.

If you’re considering a move to California, be sure to check out homes for sale in San Francisco and San Francisco housing market trends.

Sacramento

Sacramento is the sixth most populated city in California, with a population of about 525,000. It’s one of the most popular cities in the state that doesn’t sit on the ocean – instead, it’s about an hour inland.

Sacramento is the state capital of California, meaning it’s the hub of the state’s government. Given that Sacramento is the state capital, government is also one of the top industries in the city. Don’t worry, though – there are plenty of other booming industries. However, Sacramento has a median household income that’s about $13,000 lower than the state average and a poverty rate that’s a bit higher.

If you’re considering a move to California, be sure to check out homes for sale in Sacramento  and Sacramento housing market trends.

Fresno

Fresno is the fifth most populated city in California, with a population of about 545,000 people. It sits near the center of the state. It’s about halfway between the Pacific Ocean and Nevada, as well as centrally located between the northern and southern tips of the state.

The Fresno area is most well-known for its agriculture. If you love fresh produce, you’ll want to consider moving to Fresno. The city is also conveniently located. Since it’s in the middle of the state, you can reasonably take a day or weekend trip to just about anywhere in the state.

Fresno has a low cost of living – the average house costs just $350,188. But if economic stability is important to you, Fresno may not be the right place for you. Its median household income is considerably lower than even the U.S. median. Additionally, nearly one-quarter of its residents live in poverty.

If you’re considering a move to California, be sure to check out homes for sale in Fresno and Fresno housing market trends.

How To Prepare To Move To California

Anytime you’re considering moving out of state – including to California – it’s important to prepare ahead of time. Here’s how to plan for your move.

Save Up Plenty Of Money

We’ve already talked about how California is one of the most expensive states in the country. Because of the high cost of living, you’ll want to save a nest egg of at least 6 months of expenses. Additionally, the move itself can be expensive. Make sure you’ve budgeted and saved for your moving expenses.

Secure A Job Beforehand

Given California’s high cost of living, it’s not a state you’ll want to move to without a job lined up. Luckily, there are plenty of job opportunities, so you should be able to secure a job before your move. And if you’re a remote worker already, you may be able to continue doing your same job from your new home.

Compare Renting Vs. Buying

One of the biggest decisions you’ll have to make when you move is whether to rent versus buy a home. We’ve already talked about the highest cost of homes in the state. In fact, many people have resorted to buying a house with friends. If you don’t want to buy – or aren’t quite ready yet – then there are plenty of rentals.

Location Considerations In California

There are so many areas to choose from in California. You can choose between big cities and rural areas; beaches, deserts and mountains; northern climate and southern climate, etc. And then once you’ve chosen your destination, you’ll have to decide where in the city to live.

Here are a few things to consider.

• Affordability: Given the high cost of living, especially in certain parts of the state, affordability is an important consideration. You’ll want to choose a location in California that you can afford and understand what that will mean for your housing costs.
• Housing size and style: When moving to California, you can choose anything from an urban apartment to an oceanside home. Consider what fits with your budget and what works best for your family.
• Parking: If you’re bringing a car with you to California, be sure to consider parking at your new home. While a house will likely have private parking, an apartment complex may not.
• Accessibility and commute time: As we’ve discussed, traffic is a major downside to living in California. You’ll want to make sure your new home is reasonably close to your job and other amenities you need.
• Safety and security: Like other populated areas, cities in California do have crime. It’s important to choose an area to live where your family feels safe. You can also install a security system in your new home.

Consider enlisting the help of a real estate agent to help you choose where in the state you want to live, as well as find a home in that area.

Work With A Trusted Real Estate Agent

A trusted real estate agent can make the world of difference when you’re making a big move and buying a house out of state. Since you’re new to the area, you’ll want to enlist the help of an agent to help you find the right neighborhood for your family, find a home that fits within your budget and more.

If you’re ready to start your house hunt, be sure to find a real estate agent right for you.

Know Your Financing Options

If you’re planning on buying a home in California, it’s important to understand your financing options. Given the high housing prices in the state, chances are you’ll need to take out a mortgage rather than buy a home in cash.

If you are financing your home, you’ll have plenty of loan options. Look into whether you qualify for an FHA, VA, USDA or another specialty loan. And depending on your situation, you may qualify for special programs for first-time home buyers in California.

Begin The Big Move

Once you’ve completed all your planning, there’s nothing left to do but move. Depending on where you’re moving from, expect the cost of your move to be several thousand dollars. You can choose to rent a moving truck for your belongings or simply ship them.

The Bottom Line: Moving To California Takes Some Preparation

California is the most popular state in the country to live in – it’s home to more than 10% of the country’s residents. And it’s easy to see why, given the state’s rich culture, beautiful scenery and more. However, there are also some major downsides to living in The Golden State, including the high tax rates and the cost of living.

If you’re considering a move to California, get approved for a mortgage today to start shopping for your dream home.