California’s Economic Collapse Coming

Man speaking with flags in the background

California has hemorrhaged a staggering $102 billion in taxpayer income over the past decade as working families and businesses flee the state’s crushing tax burden and skyrocketing cost of living.

Story Highlights

California lost $24 billion in taxpayer income in 2022 alone, marking the largest state exodus in the nation
U-Haul data shows California ranking dead last for net migration for six consecutive years
Housing costs averaging 58% above national levels drive sustained outflow of younger, educated workers
State population projections slashed from 53 million to 40 million by 2060 due to continued domestic flight

Decade of Financial Hemorrhaging

IRS migration data reveals the devastating scope of California’s taxpayer exodus, with the Golden State losing $102 billion in adjusted gross income between 2011 and 2021. This financial bleeding accelerated dramatically in 2022, when California shed another $24 billion in taxpayer wealth—more than any other state in the union. The departing residents are disproportionately younger, higher-income, and college-educated households who can no longer justify the state’s punishing combination of high taxes and extreme living costs.

Housing Crisis Fuels Mass Departure

California’s housing market has become a primary driver of the sustained outflow, with costs averaging 57.8% above the national average according to Bureau of Economic Analysis data. Overall living expenses run 12.6% higher than typical American communities. Hans Johnson of the Public Policy Institute of California confirms that housing affordability has emerged as the dominant factor pushing families to seek opportunities in lower-cost states like Texas, Arizona, Nevada, and Florida.

Moving Data Confirms Sustained Flight

U-Haul’s 2025 Growth Index provides stark evidence of California’s population drain, ranking the state dead last among all 50 states for net one-way moves for the sixth consecutive year. Arizona, Nevada, Oregon, Washington, and Texas top the list of destinations for California refugees fleeing the state’s increasingly hostile business environment and regulatory overreach. The moving company’s data encompasses 2.5 million trips nationwide, making it a reliable indicator of actual migration patterns.

Long-Term Population Collapse

California’s Department of Finance has dramatically revised its population projections, slashing estimates from 53 million residents by 2060 down to roughly 40 million—essentially flat growth from current levels. The state experienced its first absolute population decline in over a century during 2020-2022, losing more than 500,000 residents. While international immigration and births provide some population stability, domestic net migration remains strongly negative at approximately 240,000 departures in 2024 alone.

This sustained exodus represents more than statistical shifts—it reflects the failure of progressive policies that prioritize ideological goals over basic economic prosperity. As families vote with their feet, California’s remaining taxpayers face an increasingly unsustainable burden of supporting bloated government programs while the productive tax base continues shrinking toward more business-friendly states.