Real estate CEO warns of growing ‘exodus’ as people have ‘given up’ on California — but where are they going?
- - - Real estate CEO warns of growing ‘exodus’ as people have ‘given up’ on California — but where are they going?
Jing PanJuly 10, 2025 at 3:33 AM
Don Peebles
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With its beautiful weather, breathtaking coastlines and vibrant culture, California has always held a special allure. But according to Don Peebles — founder, chairman and CEO of real estate investment and development firm The Peebles Corporation — the Golden State’s appeal is rapidly fading as residents pack up and head for the exits.
“California, and especially Southern California, is the most difficult place to do business in the United States,” he stated bluntly in a Fox Business interview. “We were trying to build a $1.6 billion development in downtown LA, and stuck with it during the COVID crisis, and yet we could get no support from the government.”
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Peebles didn’t mince words, arguing that the state’s policies “were hurting businesses.”
He also pointed to the growing wave of people leaving California.
“People are fleeing, they have given up, and they're going to other places,” he said. “We're going to see more of an exodus out of California, because the quality of life has diminished as well.”
The California exodus by the numbers
Talk of a California exodus gained momentum during the pandemic, and although the pace has slowed, the outflow of residents hasn’t stopped.
According to the latest U.S. Census Bureau data on state-to-state migration flows, 690,127 people left California for another state in 2023 — following an even larger outflow of 817,669 residents the year before.
Where did they go?
Texas topped the list. In 2023, 93,970 Californians relocated to the Lone Star State. In fact, Texas has consistently been the most popular destination for those leaving California:
107,546 Californians moved there in 2021
102,442 more followed in 2022
Arizona and Florida were also major draws, attracting 54,222 and 39,052 former Californians, respectively, during the most recent reporting period.
Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
Rising costs of living — and how to hedge against them
There are many theories about why so many Californians are leaving. High taxes are often cited — for example, neither Texas nor Florida imposes a state income tax. But perhaps just as important is the sky-high cost of living.
Housing costs alone are enough to make headlines. According to data from real estate brokerage Redfin, the median home price in California currently stands at $859,700 — nearly twice the national median of $440,892.
A recent Bankrate study found that a household in California needs an annual income of $213,447 to afford a typical home in the state.
Yet real estate remains a popular investment choice for those looking to hedge against rising living costs. When inflation goes up, property values often climb as well, reflecting the higher costs of materials, labor and land.
At the same time, rental income tends to rise, providing landlords with a revenue stream that adjusts with inflation.
Over the past five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has surged more than 50%.
These days, you don’t need to buy an entire property outright to benefit from real estate investing. Crowdfunding platforms like Arrived have made it easier than ever for everyday investors to gain exposure to this income-generating asset class.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving positive rental income distributions from your investment.
For accredited investors, Homeshares gives access to the $35 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Source: AOL Money
