What to Know Before Moving to California

California is the most populous state in the country and the fifth-largest economy in the world. From the tech corridors of Silicon Valley and the entertainment capital of Los Angeles to the biotech hubs of San Diego and the agricultural powerhouse of the Central Valley, the state offers career and lifestyle options that simply don’t exist anywhere else.

It’s also one of the most expensive states to live in. The statewide median home price hovers around $850,000, the unemployment rate runs above the national average, and the combined state income tax can reach 13.3% — the highest in the country. Moving to California is a decision that rewards careful planning.

This guide covers everything you need to make that decision — housing costs by region, the real state of the job market, what to expect from the tax burden, and the interstate moving logistics that are unique to California’s size and geography.

Pros of Moving to California

✔ Global Economy: California’s $4.1 trillion GDP would rank 5th globally. It leads the U.S. in tech, entertainment, agriculture, biotech, and clean energy — producing roughly 14% of the national GDP.

✔ Year-Round Climate: Much of the state enjoys 260–300 sunny days per year. Southern California averages 70°F year-round, and even Northern California offers mild winters compared to most of the country.

✔ Natural Diversity: From Yosemite and Big Sur to Lake Tahoe, Joshua Tree, and 840 miles of coastline, California has more national parks (9) than any other state. Weekend escapes are always within reach.

✔ Top-Tier Education: Home to Stanford, Caltech, the UC system (Berkeley, UCLA, UCSD), and the largest community college system in the U.S. The Cal Grant program covers tuition for qualifying low- and middle-income families.

✔ Cultural & Culinary Capital: 800+ languages spoken, the most diverse food scene in the country, and world-class museums, music, film, and arts institutions across the state.

Cons of Moving to California

✘ Extreme Housing Costs: The statewide median home price is ~$850,000 — roughly double the national average. Only 18% of California households can afford the median-priced home.

✘ Highest State Income Tax: California’s top marginal rate is 13.3%, and the progressive bracket starts relatively low. No local income tax, but the state rate alone is the highest in the nation.

✘ Traffic & Commutes: LA and the Bay Area consistently rank among the worst commutes in the country. Average one-way commute times in Los Angeles metro exceed 30 minutes, and many residents spend 60–90 minutes each way.

✘ Natural Disaster Risk: Wildfires, earthquakes, and drought are real and recurring. The 2025 Southern California fires displaced thousands and impacted home prices in affected areas significantly.

✘ Above-Average Unemployment: California’s 5.5% rate (Dec 2025) consistently runs above the 4.4% national average, driven by the state’s larger workforce and higher cost of market entry.

Cost of Living in California

The cost of living in California varies dramatically by region. The statewide median single-family home price was $823,180 in January 2026 (C.A.R.), but that number masks enormous regional differences — San Francisco’s median sits at $1.3 million, while Sacramento’s is around $500,000 and inland cities like Fresno and Bakersfield offer homes under $400,000.

Rents follow a similar pattern. A one-bedroom apartment averages $3,000+ in San Francisco, $2,500 in Los Angeles, and $2,600 in San Diego — while Sacramento averages around $1,400. California’s salaries tend to run 10–20% above national averages for comparable roles, but the housing premium often absorbs that difference and then some.

One cost advantage: California has no estate tax, no inheritance tax, and property taxes are capped under Proposition 13 at roughly 1% of the purchase price (increasing no more than 2% annually). Long-term homeowners benefit significantly from this — but new buyers enter at current market values.

Housing Market Trends in California

California’s housing market is stabilizing after years of pandemic-era volatility. The California Association of REALTORS® (C.A.R.) reported a statewide median single-family home price of $850,680 in December 2025 — down 1.2% year-over-year — with homes spending a median of 36 days on market, up from 31 the year prior. The sales-to-list-price ratio slipped to 97.9%, signaling buyers are gaining more negotiating room.

Looking ahead, C.A.R. forecasts the 2026 median will rise to $905,000, driven by mortgage rates easing toward 6.0% and active listings rising roughly 10%. Only 18% of California households can currently afford the median-priced home — up from 16% in 2024, but still far below the 35% affordability rate seen in 2019.

Regional variation is extreme. San Francisco‘s median sale price is $1.3 million (Redfin, Jan 2026), up 2.8% year-over-year, with homes selling in just 44 days. Los Angeles city sits at $975,000 but saw a notable 9% decline — partly reflecting wildfire impacts in affected neighborhoods. San Diego remains competitive at $970,000, up 3.2%. For affordability, inland cities like Sacramento, Fresno, and Bakersfield offer medians well below $500,000.

Job Market and Employment in California

California’s unemployment rate was 5.5% in December 2025 (EDD), above the 4.4% national average — a consistent pattern for the state. Total nonfarm employment stood at 18,021,200, though December marked the first year-over decline (-11,200 jobs) since March 2021. The strongest sector was private education and health services, which added jobs for 47 consecutive months as California’s population ages.

Despite the headline rate, California’s economy remains one of the most powerful and diverse in the world. Silicon Valley (Apple, Google, Meta, NVIDIA) and San Francisco anchor the global tech industry. Los Angeles drives entertainment, media, fashion, and aerospace (SpaceX, Northrop Grumman). San Diego is a national leader in biotech, defense (Navy, Marine Corps), and clean energy. The Central Valley produces over a third of the country’s vegetables and two-thirds of its fruits and nuts.

California’s minimum wage is $16.50/hour — one of the highest in the U.S. — and salaries across most industries run 10–20% above national averages. For remote workers, California’s cost of living can be offset by relocating to Sacramento, the Inland Empire, or the Central Coast while maintaining a California or national-market salary.

Education and Schools in California

California has the largest public higher education system in the country, structured across three tiers: the University of California (UC) system (10 research campuses), the California State University (CSU) system (23 campuses), and the California Community Colleges (116 campuses). The Cal Grant program covers tuition for qualifying families, and the California Promise program offers two free years of community college.

For higher education, California offers nationally recognized institutions:

✔ Stanford University — Private research university in Palo Alto, consistently ranked among the top 5 globally

✔ Caltech — World-leading science and engineering institution in Pasadena

✔ UC Berkeley & UCLA — Flagships of the UC system, both ranked among the top public universities in the world

✔ UC San Diego, UC Davis, USC — Major research universities driving biotech, agriculture, and the creative arts

For K-12, California’s school quality varies widely by district. Top-ranked districts are concentrated in the Bay Area (Palo Alto, Cupertino), Orange County (Irvine), parts of LA County (San Marino, La Cañada Flintridge), and San Diego County (Poway, Del Mar). California spends approximately $23,000 per pupil — above the national average — but results vary significantly by district.

Resources for Moving to California

Relocating to California involves updating your identification, registration, and residency within specific timelines. California requires a new driver’s license within 10 days of establishing residency — one of the shortest windows in the country. Here are the essential resources:

✔ Transfer Your Driver’s License — Apply within 10 days of establishing California residency

✔ Register Your Vehicle — California requires a smog check for most vehicles before registration

✔ Register to Vote — Online voter registration through the California Secretary of State

✔ Certificate of Insurance (COI) — Many California apartment buildings and HOA communities require a COI from your mover

How to Prepare for Your Move to California

California is a long-distance move for most people, and the state’s size means delivery logistics matter. Having a solid moving checklist is essential for staying on track.

1. Book Early — Especially for Summer: California is one of the top inbound moving destinations in the country. Summer and early fall are peak season. Book your long-distance move at least 6–8 weeks in advance.

2. Understand the Distance Factor: Cross-country moves to California (from the East Coast or Midwest) typically take 7–14 days for delivery. Get a firm delivery window and track your shipment.

3. Budget for California-Specific Costs: Expect higher security deposits (typically 1–2 months’ rent), smog check and registration fees for vehicles, and potentially a COI for your building. Professional packing can protect valuables on long transits.

4. Set Up Utilities in Advance: PG&E (Northern California), SoCal Edison (Southern California), and SDG&E (San Diego) all require account setup. Water and trash are often handled by the city or HOA.

5. Get Renter’s Insurance: California landlords typically require proof of renter’s insurance before move-in. Policies are affordable ($15–$30/month) and provide essential protection.

Get a Free Quote for Your California Move

Whether you’re heading to a studio in San Francisco, a house in San Diego, or starting fresh in Sacramento, Poseidon Moving has the experience and infrastructure to handle your California relocation from start to finish — including full-service moving, packing, and long-distance delivery across the country.