Why people are Flocking to North Carolina from California

California Exodus: Finding a New Home in North Carolina

Do you currently live in California and are considering relocating? Wondering if North Carolina would be a good fit for you and your family? Despite California's beautiful weather, stunning beaches, entertainment options, and tech industries, people are leaving the Golden State in droves. My family and I faced this same decision 7 years ago when we started researching possible states with similarities to California.

One of the questions I'm asked most frequently is why we moved to Raleigh, North Carolina from California and if we miss it. While I grew up in California and it will always hold a special place in my heart, I'm now proudly a Carolina girl. Today I'll share the top 10 reasons people are making an exodus from California to North Carolina, including my family's experience and why we'll never move back.

1. Natural Disasters

Growing up in Southern California, I remember constant issues with droughts, wildfires, mudslides, and earthquakes. Even now, as of September 2024, many of my friends are in harm's way from multiple wildfires due to extreme heat. This year alone, California has reported over 432,000 emergency responses with nearly 1 million acres burned.

These disasters have created an insurance crisis, with major companies canceling existing policies and refusing to issue new ones. Between summer 2023 and early 2024, five additional companies stopped writing new home insurance policies in California. Several large insurers including Geico, Allstate, and Liberty Mutual have even pulled out of California's auto insurance market.

While North Carolina does experience some tornadoes and hurricanes, the data from 1851-2022 shows that despite ranking fourth for hurricane frequency, the state hasn't experienced any Category 5 storms, only one Category 4, and just six Category 3 hurricanes. In Raleigh, being inland from the coast, we typically experience wind, rain, and occasional power outages during hurricane season. After our first outage, we installed a generator with an electrical switch for immediate power if needed. It's wise to be prepared, but hurricanes shouldn't be a major concern for most inland areas.

2. High Cost of Living

California consistently ranks among the most expensive states, with housing, transportation, food, and utilities costs far exceeding national averages. This was a huge factor in our relocation decision. Using BestPlaces.net to compare Long Beach to Raleigh with our annual salary, we found the cost of living was 35% lower overall, with housing 42% cheaper.

While the cost of living has increased everywhere, California's combination of income tax, sales tax, property tax, and fuel costs creates a significant financial burden. When I last spoke with friends in California, gas prices were about $2.50 more per gallon than in Raleigh—I can almost fill my tank twice for what one California fill-up costs.

Some expenses, like health insurance and groceries, didn't seem much cheaper in North Carolina. However, overall, goods and services are more affordable, and our lower taxes provide a better standard of living.

College affordability was also important for our family. I was surprised to find that North Carolina ranks in the top 10 for affordable tuition and fees, while California's college acceptance rate is nearly 11% lower than the national average. Raleigh spends 29% less per student than San Diego, with student-to-teacher ratios over 33% lower. The Triangle area offers excellent higher education options, including NC State, Duke University, UNC-Chapel Hill, Meredith, Shaw, William Peace, Wake Tech, and more.

3. Housing Affordability

Home ownership in California has become unattainable for many, with California Association of Realtors reporting median home prices around $800,000 statewide, and considerably higher in coastal metropolitan areas. Affordable housing plays a significant role in North Carolina's lower cost of living. According to recent real estate data, the Raleigh area's median home price is in the $450,000-$500,000 range, making homeownership an achievable dream for many transplants.

Prices do vary by location, with popular cities and suburbs in the Triangle area commanding premiums above the median. Still, the combination of affordable housing and reasonable property taxes makes North Carolina an attractive option for homebuyers, especially those coming from high-cost-of-living states like California.

4. Quality of Life

Many Californians feel their quality of life is diminished by high costs, homelessness, and everyday stressors. In contrast, Raleigh offers a blend of urban amenities with a relaxed Southern atmosphere. According to WalletHub's 2024 rankings, Raleigh ranks among the top state capitals for affordability and quality of life based on jobs, safety, educational opportunities, and more.

Outdoor enthusiasts will appreciate Raleigh's 200+ parks (nearly 10,000 acres) and over 100 miles of greenways for walking, hiking, and biking. The area's numerous lakes and rivers are perfect for fishing, kayaking, and swimming.

Healthcare was a crucial factor in our relocation decision. As we age and with our daughter having a heart tumor, leaving her lifelong doctor in California was concerning. Fortunately, the Triangle area offers exceptional medical facilities, with Durham known as the "City of Medicine" due to the presence of Duke University Medical Center and other top healthcare institutions.

North Carolina is also recognized for its reputable schools and universities. Wake County Public School System consistently ranks among the top districts in North Carolina, and according to U.S. News & World Report, the Raleigh-Durham area is home to several highly-ranked universities—an important consideration for families prioritizing education.

5. Lower Taxes

California's 13.3% state income tax rate (the nation's highest), combined with steep sales and gas taxes, drives many residents to states with lower tax burdens. North Carolina offers more competitive tax rates for both individuals and businesses.

The state sales tax in North Carolina is 4.75%, with local sales tax adding 2.75% in some areas (totaling up to 7.5%). The state has a flat income tax rate of 4.75% for individuals and 2.5% for corporations. Property taxes are assessed at the county level and vary by location, but they're generally much lower than California's rates.

6. Job Opportunities

California's job growth has lagged behind the national average in recent years, while many businesses are leaving the state due to high operating costs and strict regulations. The rise of remote work has made it easier for professionals to live elsewhere while maintaining employment.

The Raleigh-Durham Triangle continues to attract people in research, technology, education, and healthcare. North Carolina ranks among the top states nationally for bioscience employment, with the Research Triangle Regional Partnership reporting over 600 life science companies in the region. Research Triangle Park, one of the largest research parks in the world, houses more than 300 companies and organizations on its 7,000-acre campus. According to the Bureau of Labor Statistics and local economic development data, the Raleigh area is projected to see job growth significantly exceeding the national average over the next decade.

7. Traffic Congestion

California's major cities are infamous for severe traffic problems, leading to stressful, time-consuming commutes. During our last visit, it took an hour to travel just 5 miles. While Raleigh's traffic has increased over the past 7 years, it's still much more manageable.

Most Triangle suburbs are within a 20-30 minute drive to downtown Raleigh, with rush hour adding only about 15 minutes—not hours—to commute times. The country roads and more reasonable traffic patterns make daily travel much less stressful.

8. Crime Rates

Some of California's major cities experience higher crime rates compared to other large metropolitan areas. By contrast, Raleigh and many surrounding suburbs consistently rank among the top safest cities to live in nationally.

9. Homelessness

Cities like Los Angeles and San Francisco face significant homelessness crises, leading to concerns about safety and quality of life. According to the U.S. Department of Housing and Urban Development's 2023 Annual Homeless Assessment Report, California accounts for about 30% of the nation's homeless population despite having only about 12% of the total U.S. population. The report found that approximately 181,000 people were experiencing homelessness in California.

While Raleigh isn't immune to homelessness issues, the scale is dramatically different. The 2023 Point-in-Time count for Wake County identified fewer than 1,000 individuals experiencing homelessness, a fraction of California's numbers even when adjusted for population. The visible impact is also notably different, with far fewer encampments and street homelessness than in major California cities.

10. Political Climate

Some Californians, particularly conservatives, are leaving due to disagreements with the state's liberal politics, strict regulations, and social programs. North Carolina is considered a "purple state" with a good mix of liberal, conservative, and libertarian residents. Cities tend to be more liberal, while areas 30-45 minutes outside Raleigh generally become more conservative.

When looking for a community that matches your political preferences, I advise clients to notice neighborhood signage during visits. Unlike California when I lived there, political flags and signs are common indicators of an area's leanings.

Is North Carolina Right for You?

If you're considering relocating from California to the Raleigh area, I'd love to help you find your perfect home. Having made this cross-country move myself, I understand the challenges and rewards of starting fresh in North Carolina.