By Chris Bayee
California appears to be writing another comeback story.
After three consecutive years of decreasing population, the United States’ most populous state is bouncing back, according to 2024 year-over-year data from the State of California Department of Finance’s E-5 Annual Report.
U.S. Census Bureau figures reveal the population fell by more than 350,000 residents (0.91 percent) from 2020 to ’21, by another 104,000 (0.27 percent) from ’21 to ’22, and by a little more than 75,000 (0.19 percent) the following year. However, it increased by 67,000 (0.17 percent) in 2024, nearly wiping out 2023’s losses and providing an optimistic outlook .
Here are five reasons behind the Golden State’s resurgence:
Pexels- Alyssa Deardorff
California’s Weather and Natural Beauty Are Top-Notch
The Golden State’s geographical allure remains intact despite everything from economic upheaval to natural disasters.
What type of typography floats your boat? California, which is home to scenic coastlines, breathtaking mountains, and picturesque deserts, has it all.
And the climate usually cooperates. The coasts feature moderate temperatures year-round, rarely dipping below the mid-40s and rarely pushing past 80, while the inland areas have more extremes in heat (deserts) and cold (mountains and deserts in the winter). Wherever you are, you can find year-round outdoor living, promoting a healthy and balanced lifestyle.
That’s been a draw for families from harsher climates.
“We fell in love with the area,” Allison Hallas told KPIX-TV in San Francisco. “It’s just gorgeous scenery. The weather is so nice.”
Hallas and her family moved from the Dallas area. There was a bit of sticker shock, but she said she found a job with a tech company in San Jose, and her family was ready for a change.
“Everything happened so fast, but it all feel into place like it was just meant to be,” she added.
Pexels- Issac Garcia
California Offers a Plethora of Culture and Entertainment
California has no shortage of things to see and do.
The state’s rich cultural makeup includes seminal events such as the L.A. Art Show, the Palm Springs International Film Festival, and Coachella, one of the world’s top music festivals. In addition, numerous other festivals pay homage to the diverse heritages that make up California.
In addition to Hollywood, California’s entertainment scene includes iconic attractions such as Disneyland, Legoland California, the San Diego Zoo, the Santa Cruz Beach Boardwalk, San Francisco’s Pier 39, and Alcatraz Island.
Pexels- Amita Batra
California’s Vast and Innovative Economy …
The scale of California’s economy, which would be the fifth-largest in the world if it were its own nation, is impressive. There are several sectors in which it is a world leader.
The technology scene is thriving and innovative. Its legacy reads like a who’s who of the tech world: Apple, Meta, Google, Hewlett-Packard, eBay, Intel, Cisco, Broadcom, LinkedIn, and now startups such as Open AI. Think about how many of those companies’ products and services you utilize every day.
California also is a big player in the financial services field. Seven companies boasting more than a trillion dollars in assets under management have a significant presence in the state, according to USNews.com. This includes Fidelity, Charles Schwab, Merrill Lynch, Pierce, Fenner & Smith, Inc., JP Morgan Securities, UBS, and Wells Fargo Advisors. Finance, insurance, and real estate accounted for more than $577 billion in 2022, making it the state’s largest industry by GDP.
The information services, healthcare, trade, education, and aerospace industries also are major employers in the state, per Statista.
… Begats High-Paying Job Creation
The caliber of those jobs, as well as those in industries such as tourism, film and television, and manufacturing (California has more manufacturing jobs — 1.35 million — than any state), means salaries are high, helping offset the high cost of living.
California’s average salary of $73,000 is the nation’s third-highest after Massachusetts and New York, per a Forbes report. California’s median household income is $91,551, exceeding the U.S. average by almost $17,000.
The Public Policy Institute of California noted that the recent trend of households at all income levels leaving the state has seen an interesting shift. The PPIC reported that higher-income adults moving to California increased by 30 percent since 2022, offsetting slight declines in the number exiting during the pandemic’s peak years of 2020-21.
Pexels- Matheus Bertelli
Many Large California Companies Are Bringing Back In-Person Work
One reason many families relocated during the pandemic was they could. Remote work wasn’t only in vogue; it became a necessity during the pandemic.
The tide has turned, however. Many large California companies have implemented RTO, or Return to Office, policies in a pendulum swing that is driving those wayward stragglers back to the region.
CBS News reported that companies such as X, Zoom, Disney, Amazon, and JP Morgan Chase have mandated in-person work schedules. Amazon, for example, has more employees in California (13,500) than any state. Disney employs nearly a quarter of a million people worldwide, about 180,000 in the United States, and tens of thousands of those in California.
“We’re definitely losing more people than we’re gaining, but it’s eased,” said Abby Raisz, a Senior Research Manager with the Bay Area Council Economic Institute, to KPIX-TV.
One reason why she thinks this is happening is because people who moved elsewhere for fully remote work during the pandemic are returning.
“This strict enforcement from employers working in-office, in-person at least some of the time or full-time was a major contributor,” she said.
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