Thinking of moving to California? The state has a $4.1 trillion economy and growing industries like tech, biotech, and filmmaking. With mild weather year-round and a strong economy, California is the #2 most desirable state to move to in 2025.
But the move comes with trade-offs. The median home price is over $800,000. Rental costs are also among the highest in the country. Still, many are choosing cities like Sacramento, Fresno, and Riverside for lower living costs and a better quality of life.
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Key Takeaways:
- California has the largest economy in the US, with job opportunities in tech, entertainment, and tourism.
- The cost of living in California is 50% higher than the national average.
- The state is home to top universities like Stanford University and UC Berkeley.
- California’s taxes include a progressive income tax from 1% to 13.25%, with an additional 1% surtax on income over $1 million.
- Moving costs range from $2,200 to $6,400, depending on distance and load size.
- California’s climate is diverse, with mild coastal areas and colder, snowier regions in the Sierra Nevada foothills.
3 Reasons to Move to California
Why settle for just sunny beaches when you can also enjoy the high life? Browse through over thousands of mansions, high-rise penthouses, and spacious luxury homes for sale in California, and enjoy the finest the state has to offer.
1. Job Opportunities in California
California leads economic growth in the country with a massive $4.1 trillion economy and over 650K new job openings in 2025. Here is what you need to know about the California job market:
- Tech and Startup Hub: Silicon Valley houses over 6,600 tech companies, 384 unicorns, and 38 Fortune 500 companies as of 2025. Plus, startups in California attract almost 1/3rd of all the U.S. venture capital funds, supporting jobs across the state.
- Entertainment Industry: Hollywood in California is the hub of the entertainment industry and generates $42 billion annually. Warner Bros., Universal Pictures, Paramount Pictures, and Walt Disney Studios are among the major film studios in the region.
- Tourism: California’s tourism industry is one of the largest in the country, with around 268 million tourists visiting California every year. This massive tourist inflow supports around 1.2 million jobs in the hospitality, entertainment, and transportation sectors.
2. Education in California
California’s robust education system serves 6.5 million students with around 1,000 school districts across the state. Here is what you need to know about education in California:
- Public Schools: California boasts a strong education system with 10,000+ public schools across the state. California Academy of Mathematics and Science (CAMS) in Carson and Canyon Crest Academy (CCA) in San Diego are among the top schools in the state.
- Private Schools: California has over 3,100 private schools, mostly around urban areas. Harvard-Westlake School and The Thacher School are among the top schools in the state. The average tuition cost for a private school in California is $17,263 per year.
- Higher Education: California is home to world-renowned institutions like Stanford University and the University of California, Berkeley. Both are known for their programs in engineering, computer science, and business.
3. Healthcare in California
California has a robust healthcare system with around 95% of its residents covered by healthcare insurance. UCLA Health Center in LA and Stanford Health Care in Stanford are among the top medical institutions in the state.
Additionally, California’s Medi-Cal program provides health insurance coverage to eligible individuals with limited income. Plus, California Children’s Services (CCS) provides healthcare assistance to children under 21 years from families earning below $40,000 a year.
Pros and Cons of Living in California
Here are the major downsides and benefits of living in California:
| ✅ Pros | ❌ Cons |
|---|---|
| 1. You’ll have access to a robust job market, with high demand in tech, entertainment, and tourism. | 1. California has a progressive income tax rate of 1%-13.3%, one of the highest in the U.S.. |
| 2. California offers access to top-notch education with Stanford University and UC Berkeley. | 2. The cost of living in California is 50% higher than the national average. |
| 3. California has a diverse landscape, from sandy beaches along the Pacific Coast to mountainous regions in the Sierra Nevada. | 3. California’s unique location along the Pacific Ocean and dry climate make it prone to earthquakes and wildfires. |
| 4. With 300+ days of sunshine, California is perfect for beach activities, hiking, and exploring national parks. | 4. Roads in Southern California and the Bay Area are among the most congested roads in the U.S.. |
Things to Know Before Moving to California 📌
Here are the things to keep in mind before relocating to California:
1. Cost of Living in California
The cost of living in California is almost 50% higher than the national average. This simply means everyday expenses like utilities, food, and transportation cost more. Additionally, expensive housing is another factor to consider before moving to California.
2. Infrastructure and Transportation
Despite California’s robust economic growth, the state’s aged and overburdened infrastructure faces several challenges. Southern California and the Bay Area have the 2nd and 3rd-most-congested roads in the country.
However, California is expected to invest over $180 billion in infrastructure, including development projects in energy, transportation, and broadband infrastructure. The initiative will create around 400,000 new jobs in the state.
3. Climate in California
Most of the state experiences a Mediterranean climate with mild winters and dry summers. Coastal regions have a marine climate with cool summers and mild winters. On the other hand, the Central Valley has a continental climate with hot summers and cool winters.
The Federal Emergency Management Agency (FEMA) designates California as a very high-risk state for both earthquakes and wildfires. Los Angeles, Riverside, and parts of Northern California are prone to wildfires, while the entire state is a high-risk zone for earthquakes.
4. Laws and Regulations
- Environmental Laws: Cars must pass the smog test. If your car fails to meet the standards, you may have to upgrade your vehicle.
- Housing and Rent Laws: In California, especially in areas like Los Angeles and San Francisco, rent control laws exist. The rent increase is capped under the California Tenant Protection Act.
- To Carry a Firearm: A state-issued concealed carry permit (CCW) is mandatory to carry a firearm in public. You will also need to register it with the California Department of Justice within 60 days of establishing residency.
- Vehicle and Driver’s License Registration: After moving to CA, you must register your vehicle within 20 days of moving here. You must also apply for and obtain a new California driver’s license within 10 days of establishing your residency.
5. Tax Burden in California
California is known to have a higher tax burden. Here’s a detailed breakdown of California’s primary tax burden for an individual:
- Income Tax: California has progressive income tax rates ranging from 1%-13.3% of your annual income. Additionally, individuals with an income of more than $1 million pay a 1.1% payroll tax (uncapped).
- Sales Tax: Sales tax in California is among the highest in the country. The state levies a 7.25% sales tax. Plus, local authorities often impose local taxes, which can raise the effective sales tax rate as high as 10.25% in some areas.
- Property Tax: The average property tax in California is 0.71%, which is significantly lower than the national average of 0.90%. This is due to Proposition 13, a law that legally restricts general property tax collections to 1% of the property’s assessed value.
How to Move to California?
Before buying a house in California, follow this step-by-step guide for a seamless move:
1. How to Plan Your Logistics?
- If you want to skip all the heavy lifting, consider hiring a professional mover. You can expect to pay around $122[3] per hour. However, this amount can vary depending on the size of your belongings and the distance.
- If you are into DIY, hiring a truck is a better option. The average cost to rent a mid-sized truck with a load capacity of 4,000-6,000 pounds ranges between $40 and $80[4] per day. Be sure to factor in additional charges for mileage, fuel, and insurance.
2. How to Set Up Utilities?
Getting your utilities set up is a straightforward process in California:
- Electricity and Gas: If you are moving to NorCal or the Central Valley, your electricity and gas will likely be provided by PG&E (Pacific Gas and Electric). You can start the early transfer of your services online or through their helpline.
- Water: California Water Service (Cal Water) and the Los Angeles Department of Water and Power are the largest water and sewer service providers in California. You can start your services by visiting their website.
- Internet: Depending on your location, California has several popular internet providers like Xfinity, AT&T, and Spectrum. Additionally, areas with a high presence of tech companies, like the Bay Area, have fiber-optic options like Sonic or Frontier.
3. How to Enroll Your Kids in School?
Most schools in California let you register online:
- For Kindergarten: Children must be 5 years old for kindergarten, and 6 for the first grade by September 1. You will need the child’s birth certificate, vaccination records, proof of residency, and a photo ID.
- For Older Kids: For older children, you will need all the above-mentioned documents, in addition to transcripts or report cards from their previous school. If your kids are high school athletes, check the eligibility first to avoid any complications.
4. How to Transfer Your Job or Find a New One?
- Work From Home: Around 3.2 million (17%) of Californians work from their homes. If you are someone who works remotely, just make sure that your employer follows all the California tax and employment rules.
- Find a New Job: Explore platforms like Indeed, LinkedIn, and CalCareers, and join local groups or events to network. Top job markets include LA for entertainment, the Bay Area for tech, San Diego for biotech, and Sacramento for government work.
5. How to Find the Perfect House?
The California housing market is highly competitive for buyers. The median home price in California is $786K, significantly higher than the national average. Here is what you need to know about the housing market in California:
- In popular cities like LA, San Francisco, and San Diego, the average rent is around $2,800[2]. Depending on nearby amenities and the neighborhood you are moving to.
- If you plan to buy a home in a coastal city, homes for sale in Los Angeles cost around of $1.03M[2]. On the other hand, inland cities like Sacramento and Stockton offer affordable options with median house prices of $510K and $440K, respectively.
Should I Move to California?
Yes, you should definitely move to California. The state combines new opportunities, a good quality of life, and friendly communities. However, relocating to California isn’t easy. It takes time, careful planning, and effort to find the perfect place to call your home.
With Houzeo, California’s best home-buying website, buying a house in the Golden State is simple. You can browse through the latest listings, save your favorites, schedule showings, and submit offers, all at your fingertips.
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Data Sources
To help you make a smart move to California, we analyzed key data points that impact relocation costs, lifestyle, and employment prospects. We’ve sourced reliable, up-to-date data across the following categories:
- Statistical Atlas: Major employers
- Zillow: Average rent, Median home price
- MoveBuddha: Estimated moving costs
- Thisoldhouse: DIY truck rental rates, Average cost of moving
By backing our insights with real numbers, we give you a clear picture of what it really takes to relocate to California, long before the moving boxes are packed.
