Is California Exodus Real? Why Las Vegas Austin, and Santa Fe Appeal to Californians

1512 Champion Hills Lane, Las Vegas (Tournament Hills) 53 Painted Feather Way, Las Vegas (The Ridges)

Sold price: $2.675M List price: $2.7M Sold date: 01/25/21 5 beds/7 baths 7,471 sqft/0.53ac 4-car garage Year built: 1997 DOM: 26 Sold price: $4.95M List price: $5.275M Sold date: 07/09/20 7 beds/9 baths 11,361 sqft/0.65 ac 4-car garage Year built: 2009 DOM: 189

The other affluent neighborhood is Henderson, located 18 miles southeast of the Las Vegas Strip and consisting of numerous master-planned communities. Henderson has a suburban feel, with 64 parks, a 180-mile trail system, a large recreational facility (the Multigenerational Facility at Liberty Pointe), open grassland and playgrounds, and scenic Bird Viewing Preserve. There are also shopping malls, fine dining, movie theater complexes, and casino resorts.

Examples of exclusive gated communities include MacDonald Highlands, Anthem Country Club, and Southern Highlands. Homes in these communities can range from several hundred thousand dollars to nearly $20 million.

11 Chenal Pass, Henderson (Anthem Country Club) Sold price: $1.7M List price: $1.55M Sold date: 11/12/2010 6 beds/7 baths 5,756 sqft/19,602 sqft 3-car garage Year built: 2004 DOM: 62 1485 Foothills Village Drive, Henderson (MacDonald Highlands) Sold price: $5.95M List price: $6.25M Sold date: 12/28/20 5 beds/8 baths 9,508 sqft/0.64 ac 6-car garage Year built: 2019 DOM: 103

Relisted on 4/26/2021 for $6.75M and currently under contract. Both communities enjoy easy access to smaller airports perfect for private jets, with Henderson Airport and North Las Vegas Airport laying in close proximity to Henderson and Summerlin, respectively. Also, Las Vegas McCarran International Airport offers direct flights to many places around the country and the world.

The local agents in Las Vegas have noticed that the influx of buyers from California has caused these communities to expand rapidly. High-rises are in the works and will be built in the Las Vegas areas, such as Henderson, in the coming years.

Why do Californians Move to Texas?

Since 2017, Texas has been the top state for Californian migration, with over 231,000 Californians moving there from 2017-2019, with many choosing to settle in cities such as Austin.5

Texas, the largest state in the contiguous U.S. and the second most populous state in the nation, holds tremendous appeal to Californians. First and foremost, the tax benefits Texas offers its residents are extremely tempting. Texas has no state income tax, no estate or inheritance tax, although the county and city property taxes are sometimes high compared to a similarly price home in Silicon Valley.

Second, the key industries of Texas include aerospace, aviation and defense, biotechnology and life sciences, energy, information technology, and advanced manufacturing.6 Texas is also home to numerous high-tech companies with large branches, including Samsung, Texas Instruments, Cisco, and Microsoft; automobile companies such as GM and Toyota; and other top-tier companies including Johnson & Johnson, ExxonMobil, and Fujitsu – just to name a few.7 Joining these companies are recent transplants from California, such as Oracle and HP Inc., while even Elon Musk left California for Texas last year.

Third, those on the political right who may feel under-represented in California may prefer the rightleaning political climate in Texas, where 52.1% of voters went for Trump in the 2020 Presidential race.8

With the influx of companies moving or opening offices in Austin, this city will continue to see an increase in population, and we anticipate the real estate prices in Austin will continue to appreciate in the coming years.

Why do Californians Move to New Mexico?

Although New Mexico is not in the top tier of states where Californians have migrated, there were over 20,000 Californians who left California for New Mexico between 2017 and 2019.18 According to Hire-A-Helper, New Mexico saw an increase of 11.3% people moving into the state in 2020.19 In fact, a few of my clients decided to relocate to Santa Fe, so in early April, I decided to fly there to check out the city myself and meet some top agents. And I fell in love with Santa Fe.

Founded in 1610, Santa Fe is a colorful, artistic city rich in history and is the oldest capital city in the United States; in fact, nearly 20% of the city is classified as a historic district. This city is a blending of Hispanic, Native American, and Anglo cultures, and this is reflected in the art, buildings, food, and people. This cultural uniqueness, along with the gorgeous landscape, have lured many artists and writers to the area over the years, such as Georgia O’Keeffe, Patrick Oliphant, Robert Henri, Gustave Baumann, and Cormac McCarthy. Santa Fe is the third largest art market in the nation, behind New York and Los Angeles, and boasts over 250 art galleries and studios showcasing an array of art, including traditional and contemporary painting, photography, sculpture, pottery, and textiles.

The richness of the culture is also seen in the festivals and food. There are countless festivals that the locals celebrate, such as Zozobra (festival to burn away “doom and gloom”), Pueblo Feast Days, Harvest Festival, Christmas at the Palace & Las Posadas, and New Year’s Eve Celebration on the Plaza. The food in Santa Fe reflects colorful cultures, with many dishes featuring the local staple, chiles.

With such a large artist colony, tourism, government, and small businesses play a large part in Santa Fe’s economy. Looking at New Mexico as a whole, its key industries include aerospace and defense, biosciences, cybersecurity, film and television, global trade, intelligent manufacturing, sustainable and green energy, and sustainable and valueadded agriculture.20 Some of the top companies with a presence in New Mexico include Intel, Honeywell, General Mills, Jabil, Medlin Ramps, and Tempur-Pedic.21

The political climate in New Mexico leans left, with 54.3% of voters voting for Biden in 2020.22 Santa Fe County is even more liberal, with 76% voting for Biden.23