California is experiencing an exodus of college-educated residents, with four of the top six metros where graduates are most likely to leave being in the state. The trend was highlighted in a study by HireAHelper, which found a 23 percent decrease in residents with degrees in California in 2023. The study pointed to housing costs, living expenses, and job prospects as key factors driving this trend, with big tech layoffs also contributing to the state’s diminishing attractiveness to job-seekers.
In contrast, Florida, Nevada, Wisconsin, and Washington State are among the top destinations for college-educated Americans. South Carolina and Nevada were the second and third most popular states for this demographic. These states offer lower costs of living, good job prospects, and the promise of a higher standard of living compared to California and New York. Cities like Oxnard, San Jose, Los Angeles, and San Francisco in California have seen the most significant net losses of college-educated residents, ranging from -25 to -51 percent.
According to research from HireAHelper drawing on 2023 U.S. Census data, the phenomenon of “brain drain” is prevalent across the country. This term refers to the trend where individuals in the top third of the national education distribution move to a state different from their birth state between the ages of 31 and 40. States like Florida and Nevada offer lower average rents for apartments and housing rentals compared to California, making them more attractive to college-educated individuals looking for affordable living options and better job prospects.
Florida currently has an average rent of $1,917 for apartments and $2,400 for housing rentals, with an average house price of $392,306 as per Zillow. In comparison, California’s average rent for apartments is $2,481, and housing rentals are $3,533. Nevada’s labor force reached an all-time high at the end of 2023, and Wisconsin is projected to add over 80,000 jobs to its economy through 2025, with significant gains in computer and mathematical occupations. The combination of job opportunities, lower living costs, and a higher standard of living makes these states a more appealing choice for college-educated individuals seeking to establish themselves in a new environment.
Overall, the trend of college-educated individuals leaving California in search of more affordable living options and better job prospects is underscored by the data from HireAHelper’s research. States like Florida, Nevada, Wisconsin, and Washington State are emerging as top destinations for this demographic, offering a lower cost of living and promising job markets. The “brain drain” effect, as defined in a congressional report, is reshaping the demographic landscape of the country as individuals seek out opportunities that align with their educational background and aspirations.
