CNBC: Why People & Companies Are Fleeing California

Aditi Roy, a CNBC reporter based in San Jose, identified some of the companies moving their headquarters out of California, which she included in her “Power Lunch” story about a record number of people leaving the state.

“Spectrum Location Solutions [told] us between 2008 and 2019, 18,000 companies have left California for more tax and regulatory friendly states … those companies include Charles Schwab, McKesson and Carl’s Jr. just to name a few,” she reported.

“A new migration report by Redfin finds that in July more people are looking at leaving San Francisco and Los Angeles than any other metro area other than New York.”

Here is her report: ‘Here is what’s pushing people and companies out of California.’

Her story conjures up another CNBC piece headlined, ‘Shark Tank’ investor Herjavec: We’re about to see biggest exodus from cities in 50 years.

“This is one of the greatest moves to the suburbs from urban areas since the 1950s or the ’60s,” Herjavec said on CNBC’s “Squawk Alley.” Herjavec recently moved out of Los Angeles into a suburban area.

From the Redfin report:

“People are increasingly looking to leave expensive coastal metros like New York, San Francisco and Los Angeles,” said Redfin chief economist Daryl Fairweather. “Lower mortgage rates have made buying a home more affordable, but not affordable enough for typical homebuyers contending these areas’ sky-high home prices and taxes. The homebuyers who are heading out of town in search of affordability don’t just want to save a few hundred dollars per month, they want to save thousands of dollars per month, and the only way to achieve that kind of cost savings is to move somewhere more affordable.”

Joe Vranich can be reached confidentially at 800-508-5138 to explore whether a relocation makes sense for your company regardless of what state you are located in. It is a no-fee, no-obligation consultation.

Joe of Spectrum Location Solutions understands California’s perennially difficult business environment and his writings about the topic have been recognized by The Economist, Wall Street Journal, Investor’s Business Daily, CNBC, Forbes and countless other media outlets.