Real estate CEO warns of growing ‘exodus’ as people have ‘given up’ on California — but where are they going?

California has always been a dream destination for many with its stunning coastlines, perfect weather, and rich cultural tapestry. However, according to Don Peebles, the founder and CEO of The Peebles Corporation, the state’s charm is fading as residents are leaving in droves. Peebles highlighted the challenges of doing business in California, particularly in Southern California, citing lack of government support for projects like the $1.6 billion development in downtown LA.

The exodus from California has been a hot topic, especially during the pandemic. While the pace has slowed, the trend continues with over 690,000 residents leaving the state in 2023. Texas emerged as the top destination for Californians, with nearly 94,000 people making the move in the same year.

Various factors contribute to the mass exodus, including high taxes and the soaring cost of living. The median home price in California stands at a staggering $859,700, almost double the national average. A household in California needs an annual income of over $213,000 to afford a typical home in the state.

Real estate investment remains a popular choice for those looking to hedge against rising living costs. Platforms like Arrived and Homeshares offer opportunities for everyday investors to dip their toes into the real estate market without the hassle of property management. With the potential for rental income and property appreciation, real estate investment can be a lucrative venture.

For accredited investors, options like First National Realty Partners (FNRP) provide opportunities to diversify portfolios through commercial properties leased by national brands like Whole Foods and Walmart. With a minimum investment of $50,000, investors can own a share of these properties without the responsibilities of being a landlord.

In conclusion, California’s allure is waning as residents seek greener pastures in states like Texas and Arizona. Real estate investment presents a viable option for both everyday investors and accredited investors to navigate the shifting landscape of the California housing market. As the exodus continues, exploring alternative investment opportunities in real estate could prove to be a wise financial move.