California offers a lot to like, from mild weather to wild nature, hiking to beaches to wine. But the Golden State isn’t all sunshine and rainbows for retirees, either.
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Claire Kramer, who retired and moved to California a year ago, puts it succinctly: “The cost of living here is outrageous.” Sure enough, U.S. News and World Report ranks California worst in the country for cost of living.
All too many retirees regret moving to California, for some compelling reasons.
High Housing Costs
It comes as no surprise that housing costs so much in California, with Zillow reporting the average home price at $775,058.
That statewide average masks the huge variance between cities however. Stockton homes average $440,749, while San Jose homebuyers pay an average of $1,414,393. Even that “affordable” example of Stockton costs 20% more than the national average.
“I feel sorry for younger adults trying to afford a home here,” adds Kramer. “I don’t know how they can afford to live here.”
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High Taxes
California imposes notoriously high taxes, including income taxes, sales taxes and property taxes. In fact, WalletHub‘s 2025 state tax rankings put California fourth highest in the nation.
“As if the sky-high real estate prices weren’t enough, the high property taxes make California housing even less affordable,” notes financial planner Stuart Schiffman of Compound Wealth Advisors, who helped Kramer plan her move to California.
High Homeowners Insurance Premiums
Moti Gamburg works with retirees in southern California through his company CARE Homecare. Many of his clients end up moving back to lower-cost states, priced out by soaring homeowners insurance premiums.
“One retired couple I worked with had moved here to be closer to their adult children and bought a modest house outside of Los Angeles,” Gamburg noted. “Unfortunately, their homeowner’s insurance doubled in two years.”
High Crime Rate
For the high cost you pay to live there, you’d expect low crime rates. And you’d be wrong.
In fact, California ranks 45th in the nation for violent crime rates, according to U.S. News and World Report. Worse, the Council for State Governments reports that violent crime rates continue rising in California, even as nationwide rates are dropping.
Real estate expert Orin Sofrin of Eagle Cash Buyers works with retirees both moving to and leaving California.
“One of my clients decided not to move to California at the last minute, given the combination of high crime rates and outrageous cost of living,” Sofrin said.
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This article originally appeared on GOBankingRates.com: I’m Retired and Regret Moving To California — Here’s Why
