8 Reasons Californians Say They’re Done With the State in 2026

If you ask a Californian how things are going, the answer may be “bad” and the reason may start with “money.”

Several recent polls help explain why some residents say they’ve had enough.

Here’s what those polls say.

Note: This is general information, not financial or tax advice. Survey results and dollar figures are subject to change.

1. Paychecks and Price Hikes

About seven in ten Californians told the Public Policy Institute of California (PPIC) in February 2026 that their incomes aren’t keeping up with inflation.

That view held across demographic groups, at about two in three or more.

By May, more than half of Californians said recent price increases had caused them financial hardship.

About two in ten described that hardship as serious.

About half of Californians also named the cost of living, inflation, and housing costs and availability as the most important issues facing California.

PPIC’s September survey found about six in ten Californians, and half of likely voters, reporting hardship from recent price increases.

2. Housing Affordability

If you worry about covering your rent or mortgage, about four in ten Californians told PPIC the same in February 2026.

That included 15% who were very concerned and 27% who were somewhat concerned.

The worry was highest in the Inland Empire, at 51%, and lowest in the San Francisco Bay Area, at 32%.

The California Association of Realtors (C.A.R.) reported in August that 19% of California households could afford the $916,750 median-priced home in the second quarter of 2026.

If you’re trying to buy instead of rent, covering the $5,710 monthly payment took a minimum annual income of $228,400.

What Goes Into a $5,710 Payment

The $5,710 payment is built from principal, interest, taxes and insurance.

It assumes a 30-year fixed-rate mortgage at a 6.54% interest rate.

It also assumes 20% down, which works out to $183,350 on a $916,750 home.

That’s money you’d need up front, before your first payment.

3. Gasoline and Utility Bills

About six in ten Californians called the cost of energy a big problem in their part of California, according to PPIC’s survey of June 29 to July 6, 2026.

The question gave gasoline, natural gas and electric utility bills as examples of what you pay to use energy.

Asked about the price of gasoline at the pump, 63% called it a major problem.

That share is up 11 points from July 2025.

In May, 29% of Californians said recent gas price increases had affected their household’s finances a great deal, and 36% said somewhat.

4. Wildfire Response

Wildfires topped the list when PPIC’s July survey asked Californians to name the top environmental issue, at 19%, ahead of global warming at 16%.

Nearly six in ten, 58%, said state and local governments aren’t doing enough to address wildfires, including prevention and recovery.

5. Home Insurance Worries

The survey also asked whether Californians were worried that home insurance will become more expensive because of climate change risks.

Half of those surveyed said they were very concerned.

Among homeowners, it was 57%, seven points above the statewide share.

6. State Budget Situation

PPIC’s February survey described the state budget situation as the balance between government spending and revenues.

In that survey, 43% of adults and 47% of likely voters called it a big problem.

In May, those shares were 41% and 45%.

Another 48% of adults and 45% of likely voters called it somewhat of a problem that month.

7. Trust in Sacramento

In September, 59% of Californians told PPIC that the state government in Sacramento can be trusted only some of the time.

Another four in ten said they trust it just about always (4%) or most of the time (36%).

Approval of the state legislature came in at 45% among adults and 48% among likely voters.

Neither group reached half.

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8. Economic Expectations

In September, 71% of adults and 73% of likely voters said they expect bad economic times for California over the next year.

Expectations crossed party lines, with 61% of Democrats, 72% of independents and 90% of Republicans saying so.

In February, the shares were the same: 71% of adults and 73% of likely voters expected bad economic times over the next year.

Wrong-Direction Answers in Three Surveys

PPIC asked Californians whether the state is headed in the right direction or the wrong one in February, May and September 2026.

Adults answered wrong direction at 54% in February, 57% in May and 54% in September.

Likely voters said wrong direction at 52% in all three.

In September, 94% of Republicans, 55% of independents and 32% of Democrats said wrong direction.

Taxes Versus Services

PPIC's February 2026 survey asked Californians about taxes in two different ways.

Fifty-five percent of adults and likely voters said they'd prefer to pay lower state taxes and have fewer state services, while 61% favored higher taxes on the wealthiest.

Housing Costs After Leaving

If you've wondered how housing costs change after a move out of California, the California Policy Lab published a March 2026 report that put numbers on it.

During 2025, nearly 150,000 more people left the state than arrived.

The report tracked movers from 2016 to 2025 using data from one of the three nationwide credit bureaus.

The average mover relocated to a neighborhood where monthly housing costs were $672 lower than in the community they left.

Over a year, that difference adds up to $8,064.

Incomes in those neighborhoods averaged about $339 a month lower, about half the $672 drop in housing costs.

Seven years after leaving, movers were 11 percentage points more likely to own a home than people who stayed, even after controlling for age.

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