Who Is Migrating to Southern California?

Southern California’s population continues to grow, despite the rising cost of housing. A new report from JLL shows that migrants from major US metros are driving population growth in Los Angeles and Orange County. New York, Boston and Chicago are the top three metros outside of the State of California adding to the population in Los Angeles and Orange County. Since 2010, Los Angeles has added 714,057 people and Orange County has added 243,725 to the population.

“The primary motive of movers coming to the LA-OC market from anywhere in the nation is their career.” Paulina Torres, research analyst at JLL, tells GlobeSt.com. “The high cost of living in this area and state is no secret and those who decide to make the move are well aware and likely well prepared or incentivized to make this move. This market attracts a stable flow of college-educated professionals, especially from the East Coast. Looking at the most recent American Community Survey annual data for California, of individuals 25-years and older, a net 86,890 residents, without bachelor’s degrees were lost while only 4,443 residents with a four-year degree were lost. The state gained 11,653 people with graduate degrees.”

While the cost of living is certainly a problem for those moving to the market, the benefits of living in California continue to outweigh the bad. The weather specifically is a benefit, and most people moving to the market are moving from cold-weather areas. “The cost of living, especially concerning housing, is the greatest challenge to face when considering living in California,” adds Torres. “Still, superior weather, diverse landscapes, and specialized job opportunities continue to attract the nation’s highly educated population.”

To accommodate population growth, the state and local governments have started actively addressing ways to add housing to the market. “Governor Gavin Newsom has already pledged that 3.5 million new homes will be built in California by 2025,” says Torres. “Although this goal may be too difficult to reach, the housing shortage experienced in the state has been a challenge for quite some time now and both Los Angeles and Orange Counties have made great strides to address it.”

Los Angeles is leading the state in new housing units, adding 16,525 in 2018 alone. San Diego came in second with 4,505 units added last year, followed by Irvine with 3,384 units. “While areas like Silicon Valley up north and Silicon Beach down here are doing great in attracting professionals specialized in tech, entertainment, the arts or medicine, these markets should continue its focus in increasing the housing supply and making it more affordable as well as increase its focus in education so that we not only produce qualified individuals for these jobs but also minimize losses of our existing population,” says Torres.