Seniors Heading Out

An older couple called and explained, “We can’t afford to live here anymore. We need you to sell our home so we can leave the state.” When questioned about where they planned to move, they replied, “Branson, Missouri.” Ironically, a few weeks after their home closed, I received another identical call – the only difference was the final destination.

It is no secret that the cost of living in the Bay Area is escalating. Soaring housing prices coupled with general inflation has outpaced wage and income growth for many Bay Area residents. While those who are still working might anticipate wage increases, others on fixed incomes such as retirees or lower income households are finding it increasingly difficult to stay afloat. With the costs of gas, utilities, insurance, groceries and other staples higher than most other regions across the country, many – particularly seniors, are being forced to consider relocation to less expensive areas. 

There are other reasons as well that more retirees are leaving the state than are entering. Some seniors cite the fact that California’s state income tax is amongst the highest in the nation and income from pensions and retirement accounts is typically taxed as regular income. Consequently, states with lower or no income tax have a high appeal. Others are looking for a slower pace of life. Some quote local bay area crime statistics, increasing homeless populations and the overall degradation of communities that has occurred since the pandemic. Another group, citing the state’s increasing lean to the left, are heading to locations more inline with their conservative political views.

As a result, of the 50 states, California currently has the highest exit rate, followed by New York and then Illinois. In contrast, Texas is the number one destination, followed by Florida and the Carolinas.

When questioned, the couple moving to Missouri stated, “We are tired of California’s political environment, the high cost of living is killing us, our kids have already left the state and with the proceeds from the sale of our small home here, we can buy a beautiful 1,800 sq/ft home with cash.”

Even though their move would separate them from long-term friends, the prospects of moving to a more peaceful environment coupled with financial breathing room made the choice, in their minds, a no-brainer. “We can always make more friends,” they explained, “but we cannot pay bills with money we do not have.” 

Carl Medford is a licensed Realtor with Keller Williams Realty and a licensed general contractor.