Why Californians are Moving to New Mexico (and Why You Should Too)

California has always been known for its staggering population size, wealthy communities, and prosperous business environment. While the Golden State usually captures the attention of thousands of new residents each year, the state experienced a sharp decline in population growth in 2020. Research shows that by the end of last year, California had experienced a net migration loss of 135,600 residents. 

There are many great states in which to live, of course…though we might be partial to our own. So, what makes Californians want to move? And, where are they going? The answers may surprise you.

Why are residents leaving California?

Former Golden State residents blame high taxes, high living costs, and COVID-19 restrictions as their primary reasons for relocating in 2020. California’s tax marginal rate is currently the highest in the nation, sitting at 13.3%, and tax hikes for seven-figure earners are on the horizon. Since California is home to most of our nation’s millionaires, it’s no surprise that the rich are fleeing, and taking their business ventures with them.

Blue collar Californians have been equally as affected by high living costs. In 2020, the overall cost of living in California – including income tax, housing costs, utilities, groceries, transportation and healthcare – was 38% higher than in any other average U.S. city.

Some former California residents claim that politicians’ handling of the COVID-19 pandemic has encouraged them to move to a different state. The Golden State currently has the highest number of COVID-19 cases in the nation, and Governor Gavin Newsom’s approval rating on how he has been handling the crisis has dipped below 50%.

Where are Californians moving to? Why Are Californians moving to New Mexico?

It’s clear that California residents are fleeing for several reasons, but where exactly are they going? Many are flocking to the Southwest and settling down in states like Arizona, Colorado, Texas, and New Mexico. In fact, in the early months of 2021, New Mexico ranked second (behind Idaho) as the state receiving the highest influx of new residents.

For natives like us, we get why it’s called the “Land of Enchantment,” and we aren’t surprised that California’s urbanites are arriving as our neighbors. Aside from the state’s rich culture, warm climate, delicious food, and STUNNING landscapes, we’ve listed a few other reasons why Californians should move to New Mexico in 2021.

New Mexico’s low cost of living is easy.

According to the World Population Review, New Mexico ranks as the 8th most affordable U.S. state in 2021. With an average living wage of $63,629, a comfortable life comes at a fraction of the price in comparison to California’s required annual income of $100,000 just to make ends meet.

Average home prices in New Mexico are well below the national average.

The median value of a home in New Mexico is $193,000 – a price tag well below the national average of $340,000. And, it should be noted, you can get a great home here at a low price! The state’s property tax rates are also some of the lowest in the nation, and although the same can be said for California, the median cost of a home usually hikes up overall property taxes. Imagine what you would be paying in taxes on a $700,000 house!

Say it with us: So. Much. Space.

With 121,589 square feet of land and a population just over 2 million, New Mexico is far from being crowded. Those accustomed to interstate traffic, cramped sidewalks and wall-to-wall neighborhoods might enjoy the spacious and serene landscapes found all across the state. We build a number of custom homes in New Mexico with gorgeous mountain views and plenty of outdoor space. 

New Mexico’s job market is on the upswing.

Despite a challenging year for New Mexico’s labor market, the state continues to fare better than the national unemployment rate. With large companies such as Amazon and Netflix announcing their plans to build new facilities in Albuquerque, and Virgin Galactic, New Mexico State University, and many more already here, New Mexico residents can find steady and exciting work. 

Whatever your reason for moving to New Mexico is in 2021, we want to help! Contact us today to get started on planning your dream custom home. We can also help with the difference between red and green chile if you need it.