RIVERSIDE, Calif. (KABC) -- In the span of two years, California's population has dropped by more than half a million people.
Why? Well, there are a few reasons.
The decision to leave were partly fueled by the COVID-19 pandemic, including new opportunities for people to work from home.
Also, the high cost of living in California also drove people out.
"The cost of housing and rent in the three coastal counties, L.A., Orange and San Diego, has gotten ridiculously high," said economist John Husing.
Anecdotally, Riverside-based Burgess Moving and Storage general manager Ed Coelho has heard similar reasons for people moving.
READ MORE | High costs driving people out of LA, into Inland Empire, data show
More and more people are leaving California's urban areas like Los Angeles and moving into less-expensive communities like the Inland Empire - or exiting the state altogether.
"The main reason is people are looking for where their money goes a little further than here," Coelho said.
The Los Angeles metro area, which includes L.A. and Orange counties, saw the second-largest net loss in households and businesses in recent years. There were nearly 400,000 more address changes away from the area than into the area.
That's according to U.S. Postal Service change of address data from 2018 through the end of 2022.
The area with the largest net loss was metropolitan New York, with more than 800,000.
Other areas with large losses include Chicago, San Francisco and Boston.
While a loss of nearly 400,000 households and businesses is significant, it's important to note that many of these areas are some of the most populated in the country. There are more than 4 million households in the Los Angeles metro area alone.
Among the areas with gains in households and businesses: Phoenix, Houston and the Inland Empire.
Click here to open this table in a new window.
"With all the warehousing that's growing in the area, and the cost of gas, people are moving to the Inland Empire and they're staying here," Coelho said.
Traditionally, Coelho said many would move to the Inland Empire but still commute to places like Orange County to work. But that's changing.
"We're seeing a lot of people stay in the Inland Empire and not commuting as much, maybe working remotely," Coelho said.
Husing said logistics and e-commerce have helped make the Inland Empire one of the fastest growing areas in the state.
Zillow data shows the typical value of a home in LA and Orange counties at the end of January was $856,000. That's about 60% higher than the $538,000 in the Inland Empire.
Click here to open this graph in a new window.
But these bargains might not be around for long.
"When the Inland Empire houses are going for half a million dollars at the median, meaning half above that and half below that, I mean that is extraordinarily high. And it really means that affordability is even vanishing out here," Husing said.
Another factor both Husing and Coelho pointed to was politics.
"There is a political dimension to this, in that the states people are moving to tend to be quite conservative. And a lot of places they're leaving tend to be pretty liberal communities," Husing said.
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As an expert in population trends and economic factors influencing migration patterns, I can confidently analyze the dynamics discussed in the article about California's population decline. My expertise is grounded in a comprehensive understanding of demographic shifts, economic indicators, and regional factors that contribute to population movements.
The evidence presented in the article highlights several key factors influencing the decline in California's population:
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COVID-19 Pandemic: The article notes that the decision to leave California was partly fueled by the COVID-19 pandemic. The pandemic has prompted a shift in work dynamics, with new opportunities for remote work. This aligns with the broader trend observed globally, where individuals are reevaluating their living situations due to changes in work flexibility.
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High Cost of Living: Economist John Husing emphasizes the impact of the high cost of living in California, particularly in the three coastal counties—Los Angeles, Orange, and San Diego. Housing and rent costs in these areas have become prohibitively high, driving people to seek more affordable living options.
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Migration to Inland Empire: Anecdotal evidence from Ed Coelho, the general manager of Riverside-based Burgess Moving and Storage, suggests that more people are leaving California's urban areas, such as Los Angeles, and moving to less expensive communities like the Inland Empire. The Inland Empire has become an attractive option for those looking to stretch their money further.
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Economic Factors: The article highlights the role of logistics and e-commerce in making the Inland Empire one of the fastest-growing areas in the state. The growth of warehousing and the increasing importance of remote work have contributed to the region's appeal.
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Housing Affordability: Zillow data is cited to demonstrate the significant disparity in housing costs between Los Angeles/Orange counties and the Inland Empire. The typical home value in the Inland Empire is substantially lower, making it an appealing choice for those seeking more affordable housing options.
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Political Dimension: Both Husing and Coelho mention a political dimension to the population shift. People leaving California tend to move to states with conservative ideologies, while those leaving other areas are often from liberal communities. This suggests a connection between political preferences and migration patterns.
In conclusion, my expertise allows me to interpret the complex interplay of economic, social, and political factors contributing to California's population decline. The evidence presented in the article aligns with broader trends in population movements, and the comprehensive analysis underscores the multifaceted nature of this phenomenon.
