California, New York Renters Leaving, Taking High Incomes with Them

California is the leading exporter of persons with higher rent-paying ability, according to the latest Renter Migration Report from Apartment List – and most are going to nearby Nevada and Arizona.

Elsewhere, New Yorkers left their state seeking warmer climates and greater affordability, taking their nation-leading housing budgets (14% higher than those in the areas where they relocated).

New York was the only state to experience a sharper population decline than California from 2020 to 2022, Apartment List reported, losing 524,000 residents since 2020. Those who migrated from New York also chose to live further away from their original homes, namely, in Florida (13%) and California.

California’s Top Rent Payers Staying Put

Renters leaving California carried a budget that was roughly 24% higher than the budgets of existing residents in the states they were moving to, the second largest such premium for any state.

California lost more than 500,000 residents from 2020 to 2022, according to the Census Bureau, representing the second-largest absolute population decline of any state in the country, and the fourth-largest decline in percentage terms.

“Despite its massive economy and high wages, it also suffers from some of the nation’s highest housing costs, driving a significant number of the state’s residents to seek more affordable options,” cited Apartment List.

Interestingly, those leaving California were not the state’s top income earners. Those leaving carried a 13% lower budget than those who stay.

Overall, Apartment List reported that a greater percentage of renters looking to move away from their home metro market since 2020, with 40 percent doing longer distance searches, including 27 who wanted to move out of the state.

Housing Shortages’ Ripple Effects

Renters leaving California might be alleviating their personal housing cost burden, “but they are putting increased pressure on the markets they move to,” according to Apartment List, “a demonstration of the ripple effects of California’s housing shortage and affordability crisis.”

Likewise, New Yorkers leaving their state had an average budget that was 27 percent higher than that of existing Florida renters looking to stay within the state.

This partly explains why Florida has seen significant rent increases in recent years, particularly in Tampa, Miami, Jacksonville, and Orlando.