As more Americans are moving from high tax states in search of affordability and opportunity, communities like the San Gabriel Valley are experiencing the ripple effects—facing both the benefits of inbound migration and the challenges of preparing for future growth.
More Are Moving from High Tax States
The number of Americans moving increased in early 2025 for the first time in four years, according to Bank of America account data. Though overall migration remains 25% below pre-COVID levels, local moves within metro areas rose 11% year-over-year in the first quarter, while cross-metro moves increased by 7%. This uptick reflects a growing willingness among Americans to adapt to changing financial conditions, despite persistent challenges like mortgage rate lock-ins and higher borrowing costs.
Many individuals are responding to life events and new opportunities, relocating to better align with personal or financial needs. Moving from high tax states like California and New York to lower-cost regions has become a leading trend, supported by consistent findings across major surveys.
Affordability and Jobs Top Reasons
A key driver behind the shift is affordability. Americans are leaving expensive markets in search of more space, lower taxes, and cheaper housing. A 2025 Penske consumer trends report showed that 23% of respondents moved for cost-of-living reasons, while another 23% moved to find more space. Similar findings were reported by PODS and MOVEbuddha, with migration data showing high outbound rates from states with high living costs and strong inbound rates to places like Florida, Texas, and Tennessee.
Job opportunities remain another leading factor. According to the same Penske survey, 27% of respondents moved for work-related reasons. Southern metros with growing job markets and lower business costs continue to attract professionals seeking stable employment and career growth.
Family and Quality of Life Matter
While finances remain central, personal factors like proximity to family and quality of life also influence decisions. Bank of America’s 2025 Homebuyer Insights Report shows that more than half of prospective buyers feel this year is a better time to purchase than last year. The report noted that 52% of homebuyers feel positive about market conditions—a steady climb from 38% in 2023.
The same report emphasizes that despite rate pressures, Americans are warming to new market realities and planning relocations tied to major life changes: marriage, children, retirement, and caregiving. Being closer to family or choosing politically aligned or culturally familiar communities often ranks among top motivations.
Implications for San Gabriel Valley
These shifting patterns may affect the San Gabriel Valley in several ways. As higher-income residents exit the state, housing inventory may slowly rise and prices could stabilize in some areas. At the same time, the region may continue to attract in-migration from dense urban centers like Los Angeles, driven by families seeking more space within Southern California.
Lower-income residents in the valley may also face increased housing competition as prices in nearby communities drop and become more attractive to remote workers or retirees. Cities like El Monte, Baldwin Park, and Rosemead will need to monitor demographic and economic changes closely. Strategic planning in housing, infrastructure, and economic development will be essential to maintaining stability in the face of evolving migration patterns.
As Americans continue moving from high tax states to more affordable areas, the San Gabriel Valley stands at a crossroads—balancing opportunity with the responsibility to manage growth thoughtfully.
