4 Financial Reasons To Stay in California (Even Though It’s Expensive)
Written by
J. Arky
Edited by
Rebekah Evans
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California love — there is a lot to go around, even there is not a lot of money to live there. The biggest state on the West Coast is also known as one of the most expensive states in the country. With the high cost of living, pricey insurance coverage and wealth disparity, it can be difficult to find reasons to stay in California, no matter if you were born and raised there or moved later on in life.
Still, there are some incredibly good reasons to stay in California and not all of them have to do with the weather and the ocean. In fact, there are several financial benefits to calling the Golden State home. GOBankingRates found four financial reasons to stay in California, despite it being an expensive place to live.
Also here’s the other side of the coin — four reasons to move out of California.
Lower Property Taxes
According to Rocket Mortgage, California has some fairly low property taxes when compared to other states across America. Looking at all 50 states side by side, California comes out to 19 on the list, ranking lower than 31 other states when it comes to property taxes.
The data shows that California has a 0.75% effective tax rate, with a median home value or list price of about $715,900 and average annual property tax of $5,347.48. So while it might be costly to live in California in other ways, property tax is not one of them.
Big State Economy
California is a big state — not just in actual size, but in terms of its local economy, which in 2023, was found to have gross domestic product (GDP) $3.23 trillion, according to Statista. By comparison, Vermont only had $35.07 billion, making it the lowest GDP the same year in the U.S.
For the average person, this means there is an opportunity for high earning potential in California with unparalleled job opportunities in the sectors of technology, industry and entertainment. With these careers comes the opportunity for advancements and higher wages to help offset the expensive cost of living in the state.
Affordable Healthcare
This is particularly valuable if you are an older adult or retired senior who needs to have access to medical care that will not break your bank. By living in California, residents can tap into medical programs that assist in paying for their healthcare needs.
California also provides health insurance subsidies, which only nine other states in America have. These added cost-sharing reductions help to lower out-of-pocket costs “for Silver-plan enrollees with household incomes up to 250% of the poverty level,” according to HealthInsurance.org, adding that since debuting in 2024, the program is set to expand to aid more California residents in 2025.
Return on Property Ownership
Even though there is a higher cost to buying a home in California, not to mention expensive policies to insure significant natural disasters in the state, it pays off in the long run, with homeowners seeing returns that are hard to find anywhere else in the country.
“Though expensive, owning real estate in California can pay off huge, especially at retirement,” said Casey TeVault of Casey Buys Houses, a born and raised Southern Californian. “California properties appreciate at a faster and more rapid rate than most states, allowing families to build wealth faster.”
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