- Over 630,000 Californians have moved to the Grand Canyon State over the past decade — an average of 173 people per day.
- Maricopa County and its bustling Phoenix metro area are experiencing the highest levels of incoming migration from California: 34,000 people in one year.
- Los Angeles County to Maricopa County is the busiest moving route between the two states, with almost 8,700 people hitting the road in 2022.
- In 36% of the top 50 routes from California to Arizona, most movers bought a home within their first year in the Grand Canyon State. All but three of the top routes offer savings, with the highest reaching up to $1 million.
California’s year-round mild weather and booming economy have paradoxically made it one of the least affordable housing markets in the United States. Sky-high real estate prices and an escalating cost of living are pushing residents to leave at a striking pace.
While Texas remains the top relocation destination for Californians, Arizona is quickly catching up. In fact, over the past 10 years, more than 630,000 Californians — equivalent to the population of Tucson — have moved to Arizona. Rounding out the top five destinations for Californians leaving the state are Washington, Florida, and Nevada, further highlighting the scale of the Californian exodus.
Arizona’s appeal is broad, with its lower cost of living, proximity, and booming job market making it an attractive option for Californians looking for a more relaxed living environment. One of the biggest perks Arizona offers is its relatively affordable housing market. While not cheap by any standards, Arizona homes are significantly more affordable than those in the Golden State. On average, homes in Arizona cost less than half of what they do in California ($321K vs. $659K), giving people a much better chance at homeownership. The same trend applies to rent, with Arizona apartments being 30% cheaper than in California. Although the average income in California is 27% higher, it barely makes a dent in the affordability gap between the two states.
Taxes also play a crucial role in the decision to leave California. The state’s individual income tax rate, at 13.3%, is the highest in the nation, and its corporate tax rate isn’t far behind at 8.8%. In contrast, Arizona offers an individual income tax rate of just 2.5%—a fifth of California’s—and a corporate tax rate of 4.9%, making it a far more appealing option for those seeking financial relief, be it individuals or companies.
Who is moving from California to Arizona?
Who’s leaving California’s sun for Arizona’s milder climate? Driven by a strong economy—especially in tech and healthcare—and a high quality of life, Arizona is drawing a steady flow of young professionals. According to the latest county-to-county migration data from the U.S. Census’ 5-year American Community Survey (2018-2022), Millennials lead this influx, making up 26% of newcomers, or about 17,500 people. Gen Z follows with 20%, or around 13,500 new residents annually. Many baby boomers, seeking affordable retirement options, contribute another 18%, or roughly 12,000 movers each year.
A quarter of those migrating hold a bachelor’s degree, though only 9% report working remotely. The average income for Californians who move to Arizona is around $51,000 per year, higher than the state’s overall per capita income, at $48,600. Additionally, about 46% of these new arrivals manage to purchase a home within their first year in Arizona.
Los Angeles, San Diego, and Orange counties are the top starting points for Californians heading to Arizona. But where exactly are they settling within Arizona, and which routes are the busiest? We’ve analyzed U.S. Census and IPUMS data to highlight the most popular moving routes from California to Arizona. In addition, we’ve looked into real estate and demographic trends including home prices, apartment rents, self storage rates and income data to compare how these moves stack up and which routes offer the best potential for profitability for movers.
Phoenix rocks the moving ship: Nearly 34K Californians flock to Maricopa County in just one year
Maricopa County with its buzzing Phoenix metro area is the preferred destination of Californians leaving behind LA’s notoriously expensive housing market, with almost 34K moving here in 2022.
PHX has always been a darling of tech companies, due to its top-notch universities and strong aerospace industry. Naturally, there’s a busy scene of home-grown tech companies, as well as Californian transplants. In the past few years, companies like Unical Aviation, Sendoso, and HomeLight moved their corporate headquarters from California to Maricopa County.
The Phoenix metro area has also become a veritable haven of data centers from large corporations, Apple included. The arid climate with low humidity, minimal chances for natural disasters such as hurricanes or tornadoes, abundant solar energy, and good infrastructure have led to the establishment of almost 60 data centers in the metro area.
This trend is further boosting the local tech sector and contributing to the creation of thousands of attractive jobs. Add to these incentives the 300 sunny days per year and the eerie beauty of the Sonoran Desert, and it’s easy to see why former Californians are flocking here. In fact, five of the most popular moving routes from California to Arizona lead to Maricopa County.
- From the Valley to the Valley of the Sun
Almost 8,700 former Los Angelenos traded the Pacific coastline for the Valley of the Sun, making it the most popular moving route from LA County to Maricopa County. A significant share, 35%, of those movers are millennials. The trade is paying off, particularly when it comes to housing costs. Home prices in Maricopa County stand at about half of the average cost of a home in Los Angeles County, meaning that this moving route can potentially bring $360K in savings when purchasing a home. And former Los Angelenos are taking advantage of it, with 43% of them becoming homeowners during their first year in Arizona.
Apart from more affordable homes, newcomers are also benefiting from a job market that’s far friendlier with job seekers: The unemployment rate in Los Angeles County stands at 6.5%, whereas in Maricopa County it’s just 3.8%.
- San Diego County to Maricopa County
The second-busiest moving route from California to Arizona starts in San Diego County and ends in Maricopa County, with nearly 5,200 people choosing it in 2022 alone. Interestingly, this is one of the “youngest” moving routes between the two states, with the average age of movers being around 30. This is significantly lower than the average age of all California-to-Arizona movers, which is 36.5.
Naturally, these young people are interested in climbing the property ladder, a far easier mission in the Phoenix metro area, where the price of homes, at around $371K, is about half of the average price in San Diego County. Thus, about 54% of newcomers manage to purchase a home within their first year in Arizona.
- Orange County to Maricopa County
Over 4,000 people relocated from Orange County, anchored by Santa Ana, to Maricopa County, in 2022, making it the third-most-popular route between the two states. Over half of those who trade sandy Pacific beaches for the sandy Sonoran Desert manage to purchase a home within their first year in Arizona, and at a massive 57% discount. Average home prices in Maricopa County are almost half a million less than in Orange County, where they hover around a taxing $893K.
- Riverside County to Maricopa County
About 3,300 Americans took the approximately 360-mile moving route leading from Riverside County to Maricopa County, and about a quarter of them are millennials. Home prices differences between the two locations are not quite as striking as with the other routes, but they still amount to over $91K in Maricopa’s favor. About 31% of the former residents of Riverside County managed to buy a home in Maricopa County during their first year here.
- San Bernardino County to Maricopa County
San Bernardino County is the fifth-most-likely origin place for Californians relocating to Maricopa County. About 2,650 made the move in one year alone, with 29% of them being Millennials. Homes are less expensive by over $66K at the destination, and the job opportunities are greater, with unemployment in Maricopa County almost two percentage points lower than in San Bernardino County.
- Santa Clara County to Maricopa County
Almost 20% of the 1,300 people who followed this moving route are working from home, and, most likely, they can enjoy far roomier homes and nicer home offices in Arizona than they did back home. The average home here is 72%, or $945K, less expensive than in Santa Clara County.
In fact, half of these newcomers have become homeowners during their first year here. Interestingly, those originating in Santa Clara County report the highest incomes among the newcomers to Maricopa County—almost $89K annually, with remote work for Silicon Valley companies being one of the likely reasons.
Western Arizona, a magnet for both retirees and young adventurers
A cluster of Western Arizonan counties, encompassing La Paz, Mohave, and Yuma, is also drawing significant migration from across the state border, most likely favored by its immediate proximity to California. Over 8,000 former Californian decided to relocate to one of these counties, with the city of Yuma being the largest one in the entire area.
Unlike the highly urbanized Maricopa County and its bustling Phoenix metro area, Western Arizona offers a quieter vibe and low living costs, very attractive for retirees. The cost of living in Yuma is 12% lower than the national average, while La Paz’s County seat, Kingman, offers similar affordability. Home prices in Western Arizona are very affordable as well, both compared to California and to other parts of the state, so it naturally appeals to those with limited economic flexibility. The region also abounds with natural attractions, from the Colorado River Valley to Lake Havasu and the Grand Canyon, which calls to young, Gen Z adventurers.
- San Bernardino County to Western Arizona
This migration route is short hop over the state border, but one with major economic implications: Homes are 54%, or $236K, less expensive, and rents are 40% cheaper in western Arizona. Baby boomers, attracted by affordable housing and a lower cost of living in general, as well as by a more peaceful lifestyle, are quick to trade the San Bernardino area for Western Arizona, with 30% of those taking the route belonging to this generation.
- San Diego County to Western Arizona
The nation’s Gen Zers are showing interest in a slower pace of life and in living situations that provide them access to the great outdoors. Western Arizona definitely ticks those boxes, especially when it comes to former residents of bustling and expensive San Diego County. About 1,650 people made this move in 2022, and a significant 31% of them belong to the Gen Z generation. The difference in home prices is a huge incentive as well. The average home in one of these three counties hovers just slightly above $200K, compared to $725K in San Diego County.
- Riverside County to Western Arizona
About 1,400 former residents of Riverside County chose to relocate to Western Arizona in 2022, and we’re talking about a mature population with an average age close to 44 – about 25% of the movers are Gen Xers. They also boast a higher income than transplants along the previous two routes: almost $55K per year. Thus, a significant 61% of them succeeded in purchasing a home within their first year in Western Arizona. The fact that homes are 56% less expensive certainly helps with that as well.
- Los Angeles County to Western Arizona
Trading vibrant and glamorous Los Angeles County for the quaint lifestyle of Western Arizona must be quite the transition. However, almost 1,400 Los Angelenos did so, and millennials are the most likely to leave he hustle and bustle of LA behind, with 42% belonging to this generation. A whopping 70% of those taking this route became homeowners soon after reaching to their destination, with wind in their sails from the $530K difference in home prices between LA County and Western Arizona.
Pima County and Tucson, attractive for remote employees
Pima County and its flagship city Tucson attracted around 7,000 Californians in one year alone, most of them pouring in from Los Angeles, San Diego, and Orange counties. Tucson and its surroundings are attractive not only through the lens of housing and living costs compared to California. The region is also burgeoning economically, with an unemployment rate generally lower compared to the origin counties of those who moved.
Optics and photonics technology companies brought the “Optics Valley” nickname to the area. There's also strong aerospace and defense presence, with major companies like Raytheon and Bombardier operating here. Because of this, combined with a growing startup scene, supported by organizations like Startup Tucson and the Arizona Technology Council, Pima County is presenting interesting professional opportunities to newcomers.
Tucson is an excellent place for remote workers as well – over 92% of the households have broadband internet, so the infrastructure is there. The region also has a reputation for being friendly and inclusive, with a strong sense of local culture and community engagement. The generally relaxed atmosphere can be a refreshing change for those coming from the fast-paced, often high-stress environments found in some Californian cities. There’s also ample opportunity for after-work outdoor activities, with the Saguaro National Park and the Santa Catalina Mountains perfect for hiking, biking, and exploring the desert landscape.
- Los Angeles County to Pima County
Close to 2,000 Los Angelenos decided to relocate to Pima County in one year alone – and 30% of them are working from home, making the most of their time in the beautiful natural surroundings. Gen Zers make up a remarkable one-third of all the movers on this route, once again emphasizing their interest in places that offer them a better chance at becoming homeowners, as well as having a tranquil, close to nature lifestyle.
- San Diego County to Pima County
This route accounted for around 1,560 movers, and it seems that many retirees of San Diego County are choosing Pima County for their golden years. Around 30% of those who relocated are baby boomers, and a third of them have become homeowners during their first year in Arizona.
- Orange County to Pima County
Slightly over 1,000 people relocated from Orange County to Pima County in 2022, with Gen Zers once more the dominant generation: 33% of all the movers. A whopping 62% of the ex-Californians who made this move managed to purchase a home during their first year in Arizona, benefitting from home prices that are 70%, or $605K, lower.
Best routes from California to Arizona for homebuying deals: Moving from LA to Phoenix can cut home prices in half, while San Mateo to Maricopa offers over $1M in savings
In 36% of the 50 most popular routes from California to Arizona, most movers have been able to buy a home within their first year in the Grand Canyon State. An impressive 91% of former San Diego County residents became homeowners in Yavapai County, a baby boomer favorite known for Prescott National Forest and the World’s Oldest Rodeo. The Stockton-to-Phoenix route, popular with millennials, also has strong homeownership numbers, with about 72% of newcomers owning a home within their first year.
Additionally, all but three of the top 50 moving routes offer significant savings, with the highest potential reaching up to $1 million.
Leaving the upscale tech hub of San Mateo County for Arizona’s largest metro, the Phoenix area in Maricopa County, brings the highest savings potential for homebuyers—up to $1,070,000. Another Silicon Valley hotspot, Santa Clara County, and its urban center of San Jose, is the starting point for the second-most-profitable route, leading to Pima County and Tucson, with potential savings of $1,058,000. Moving from San Francisco County to Maricopa County offers a similar opportunity, with potential savings of around $977,000.
Those moving from Los Angeles to Phoenix, the most popular route between the two states, can save around $361K on a home. Properties in Maricopa County are 49% cheaper than those in Los Angeles County ($371,400 vs. $732,200).
Best California to Arizona routes for renter savings: Relocating to Pima County from Santa Clara County comes with a monthly bonus of over $1,600
Naturally, not everyone relocating to Arizona from California is interested in purchasing a home, at least not right away. In fact, about 46% of them rent, at least during their first year in the new state, and certain routes between California and Arizona stand out as prime options for those hoping to maximize their renting-related savings.
Moving from Santa Clara County to Pima County, or, in other words, leaving Silicon Valley for the Optics Valley, can save around $1,648 on rent per month. A San Mateo County to Maricopa County comes with potential savings of almost $1,370 in monthly rent. Other profitable CA to AZ routes for renters include Orange County to Western Arizona and Santa Clara County to Maricopa County, both with rent savings hovering around $1,300 per month.
Arizona’s self storage sector supports relocations from California
As more Californians head to Arizona in search of affordable housing and a lower cost of living, self-storage has become an essential part of making these moves easier. For many, adjusting to temporary living arrangements while hunting for the perfect Arizona home means needing some extra storage space.
Self-storage offers a convenient, flexible solution, giving movers a safe place to keep their furniture, personal items, and other belongings during the transition and beyond. With Arizona's self-storage industry growing, especially in cities like Phoenix and Tucson, newcomers can easily find secure, affordable storage options. This makes it much simpler to manage belongings during the move, taking a bit of stress out of the process as they settle into their new life.
Renting a self storage unit in Phoenix, Arizona, which is one of the top destinations in the state for Californians, hovers around $122 per month. A self storage unit in Tucson is even more affordable, at around $109 per month. Below, you can check out self storage costs and availability in Arizona’s major cities:
Self storage Costs and Availability in Arizona’s Main Cities
StorageCafe analysis of Yardi Matrix data (September, 2024)The migration from California to Arizona highlights the challenges of California’s high housing costs and taxes while also emphasizing Arizona’s growing appeal with its lower cost of living, job opportunities and expanding infrastructure. This steady flow of new residents is reshaping Arizona’s economy and housing market, increasing demand in cities like Phoenix and Tucson and illustrating the broader impact of California’s housing crisis on neighboring states.
Below, you can see an overview of the California to Texas migration activity divided by routes, ranked from the most popular to the ones that see fewer move-ins:
What the experts are saying:
To gain further insight into migration trends from California to Texas migration trends, we've consulted experts:
George W. Hammond, Ph. D., Eller College of Management, The University of Arizona 
What are the main factors driving the migration trend from California to Arizona?
I think that the main factors driving migration from California to Arizona are the cost of living/cost of doing business. Even though housing affordability has declined significantly nationally and in Arizona, Arizona housing remains much more affordable that it is in California. That’s particularly true for the major metropolitan areas in southern California from which Arizona draws a large share of its domestic migrants.
How is this migration pattern affecting housing and living costs in Arizona?
Migration patterns and housing affordability/living costs influence each other. Thus, migration from California to Arizona does put upward pressure on housing costs. Even so, housing remains much more affordable in Arizona than in the major metropolitan areas of California.
How do you anticipate the California-to-Arizona migration trend will evolve in the future?
Arizona will continue to draw large numbers of migrants from California, particularly the major metropolitan areas in southern California. Arizona’s housing cost advantage remains significant and will continue to be a draw for people looking to move from California. Arizona may face more challenges drawing migrants from states/metropolitan areas where the local housing cost advantage has declined, for instance, Texas, Colorado, and Utah.
Doug Ressler, Business Intelligence Manager - Yardi Matrix
What are the main factors driving the migration trend from California to Arizona?
Californians are drawn to Arizona for several compelling reasons:
- The lower cost of living: Arizona generally offers a more affordable cost of living compared to California. This includes lower housing costs, taxes, and everyday expenses.
- Affordable housing: The housing market in Arizona often provides more affordable options, allowing people to get more for their money in terms of square footage and amenities.
- Job opportunities: Arizona’s growing economy and job market, particularly in industries like technology, healthcare, and manufacturing, attract individuals seeking new career opportunities with less traffic congestion.
How can Californians leverage home equity and navigate taxes when moving to Arizona?
Californians who have gained significant home equity from selling their homes and moving to another state have several options to consider for utilizing that equity.
Many choose to reinvest their equity into purchasing a new home in their new state. This can often result in buying a larger or more desirable property, especially if moving to a state with a lower cost of living.
When selling a home in California, any profit (capital gain) is subject to California’s capital gains tax, which is taxed as ordinary income. However, you may qualify for an exclusion of up to $250,000 for single filers or $500,000 for married couples if the home was your primary residence for at least two of the last five years.
On the federal level, capital gains from the sale of a home are also subject to tax, but similar exclusions apply. Long-term capital gains (for assets held over a year) are taxed at rates of 0%, 15%, or 20%, depending on your income.
Arizona does not have a specific tax on the gain from the sale of a personal residence if it is excluded from federal adjusted gross income. Therefore, if your gain is excluded federally, it will also be excluded from Arizona gross income and not subject to Arizona income tax. In addition, Arizona does not impose a real estate transfer tax, which can be a financial relief compared to some other states.
Methodology
This analysis was done by StorageCafe, an online platform that provides storage unit listings across the nation.
For this report, we investigated the most recent California to Arizona moving data provided by the U.S. Census American Community Survey 5-year Estimates Public Use Microdata Sample, 2022.
We identified 50 popular moving routes leading from California to Arizona and ranked them based on individual move-ins by county. Additional data on home and rent values, generational demographics, homeownership or rental status, educational attainment, remote work status, and per capita income were also sourced from the U.S. Census's American Community Survey.
To assess cost savings for homebuyers and renters, we calculated both the numerical and percentage differences in home and rent prices between California and Arizona counties.
Self-storage data was provided by StorageCafe's sister division, Yardi Matrix, a comprehensive business development and asset management tool serving brokers, sponsors, banks, and equity sources across multifamily, office, industrial, and self-storage sectors.
Unemployment statistics were sourced from the U.S. Bureau of Labor Statistics, reflecting data for July 2024.
Fair use and distribution
This study serves as a resource for the general public on issues of common interest and should not be regarded as investment advice. The data is true to the best of our knowledge but may change if amendments to it are made. We agree to the distribution of this content but we do require a mention in return for attribution purposes.
