What is Causing the Business Exodus From California?
According to a November 2017 report from the U.S Census Bureau, California has had 142,932 more residents exit to live in other states than people arriving from other states. This domestic out-migration was the second largest outflow in the U.S. behind New York and New Jersey. It was up 11 percent (13,699 net departures) compared to 2015.
What is more serious is the number of California-based companies that have left or signaled their intention to leave the state. Last year marks the first anniversary of the announcement that Carl’s Jr., a California burger icon for more than six decades, was relocating its headquarters to Nashville Tennessee. It’s a symbol for what’s become a stream of businesses that have quit California. What was once an almost quiet exodus of companies now looks more like a stampede.
Among the roll call of businesses abandoning California for more hospitable business environments includes Nissan North America (who left for Nashville a decade before Carl’s Jr. did), Manufacturing firms account for the largest group of businesses that sought greener pastures, followed by pharmaceutical companies, medical device makers, biotech firms, health and dental businesses and veterinary businesses.
The passing of proposition 30 in 2012 triggered $6 billion in new annual taxes pushed companies to abandon the Golden State for greater opportunities in states such as Tennessee.
From 2008 through 2015, there were at least 1,687 California companies taking advantage of varying benefits to relocating their business to other states.
Business relocation expert Joe Vranich who, as president of Irvine-based Spectrum Location Services, has been tracking the departure of companies of all sizes. He also mentioned to Investor’s Business Daily (IBD) that from 2008 through 2015, there were at least 1,687 California companies taking advantage of varying benefits to relocating their business to other states. And those are only the reported ones. It is also being stated that as a rule of thumb among business site-selection experts that for each company reported in the press, five companies actually leave. So the real statistic is likely that as many as 10,000 companies have left in recent years.
Apart from having higher taxes, extreme housing costs and a longer list of regulations than nearly any other state, IBD indicates that California’s unusual laws have turned the Golden State into a venue of choice for activist groups to file costly class action lawsuits — or to launch anti-corporate PR campaigns against big, wealthy targets.
“Finally, we are enjoying a superior qualify-of-life here.
We bought a house larger than what we had in California for about half the cost. We can afford to engage in more activities because the cost-of-living is 44 percent lower than in Irvine,” Vranich said.
Concern about California’s costs is widespread. Statewide, 58 percent of Millennials and 65 percent of parents echoed the sentiment that “I am considering moving away from California because of the high cost of living,” according to a recent poll by the PR firm Edelman.
We here at Premiere Properties Group (PPG) in the Nashville – Franklin Tennessee area are enjoying helping families from California find excellent homes at reasonable prices and lower taxes. Please visit us at NashvillePremiereHomes.com and we look forward to hearing from you!
For other articles, please click on the following links:
https://nashvillepremierehomes.com/homes-for-sale/how-much-will-200k/
CREDITS – Excerpts from an article from Chief Executive; By J.P. Donlon