Moving To California - Is It Worth It?
Is it worth it to move to California? I’m in California now, ready to start my new job on Monday. Pretty excited about it. One of the things I struggled with was whether or not to leave Seattle and come back to California. I obviously made the decision to do it but how did I come to that conclusion? Is it really worth it?
Taxes
I’m going to start with this one because taxes is one of my favorite topics. According to one survey, California and Washington state have a tax burden of 11.5% and 11.1% respectively. This is a virtual wash. However, they go about how they collect their taxes very differently. California income tax is pretty high reaching 9.3% at the top,They also have a pretty high sales tax which can reach upwards of 8.75%. California also has fuel tax ,property tax, and a cigarette tax.
Washington also has a pretty high tax burden, but structures it very differently. Washington has NO income tax. Seattle has a sales tax of 8.8% and a Restaurant tax of 9.3%. This is of course higher than in most places in CA. They too have a property tax, and derive 30% of all revenue this way. They have a fuel tax, but it is lower than California’s. They too have a Cigarette tax which is MUCH higher than in California. I don’t smoke, so this doesn’t affect me.
In the end, most of the taxes are a wash. BUT the fact that I don’t smoke, don’t own property, I earn a high income, and I don’t spend very much, Washington is the clear winner.I estimate that I probably pay about 5% more in total taxes in California than I do in Washington. Winner: Washington
Housing
I rent. So I’ll start there.
This really depends on where you live in each area. So for sake of comparison I will use the two places I have lived, Pasadena and Redmond. Pasadena is much more “urban” which means that rents are going to be slightly more. When I left Redmond, they were about to raise the rent on my apartment to $1300 for a one bedroom apartment that was a little over 700 sq. feet. That was probably a little higher than the average, but it was close. So I would say market rate for this place was right around $1200. A similar place in Pasadena right now would probably be about $1400 right now. However, if you were to live in say Santa Clarita, a city closer to the type of town Redmond is, rents would probably be about the same.
Buying is a different matter. Despite the fact that housing prices are coming down in LA and are staying relatively flat in Seattle, buying a house is still more expensive in LA than it is in Seattle. I would estimate that buying in LA is still probably about 15-20% more expensive right now. But I expect this to correct itself in the coming year. Winner: Washington
Weather
As I type this, it is about 68 degrees in L.A right now and is very sunny. It is 43 degrees in Redmond and cloudy. I’m actually not a person who is affected that greatly by weather, but having left it and come back, I can say that it does make a difference in more ways than is obvious. First off, I don’t have to plan around weather. In Seattle, I often have to change my plans or not make them at all because of the rain or cold. I have found myself reluctant to leave the house because it was so cold.
If you are a guy, a side benefit of the nice weather are the short skirts. I also contend, that the women are just better looking in CA than in other parts of the country. Sure, it may be fake, but what does it matter if you are only looking anyway 
The one advantage Seattle has here is that it is not quite as hot in the Summer. There is a week where the heat might be really uncomfortable, where LA probably has about a month of that. But hey, isn’t that why they invented Air Conditioning?
This is one thing money just can’t buy. No matter how much money you throw at it, you aren’t going to be able to make it sunny or warm outside. Winner: California, by a lot
Cost of Living
I’ve already gone over housing, so I won’t factor that in here. A common thing you hear about living in California is that your salary will be adjusted because of the higher cost of living. I can tell you right now it’s a big lie. I am going to be making more money here than I was in Washington but that is because I’m taking a better job. I had similar offers and positions in Washington that I was considering, and I can tell you that the salaries can’t adjust for the fact that it is just plain more expensive to live in CA than in WA.
At my last job in CA, my company was acquired by a company based in Ohio. I was talking to the head of the CA operations who had moved from OH and we were talking about salaries. I asked him if he was interested in moving more of the engineering jobs from CA to OH to save on the salaries. He let me know that he wasn’t because, much to his surprise, the salaries weren’t all that different. In the end, CA loses because it is more expensive to live here but you won’t get compensated for it.
Other than that, goods cost the same. Food and other items are a push. Gas is slightly more expensive in CA by a couple of cents. Winner: Washington
Jobs
If you are looking for a tech job, California wins here hands down. Seattle tech jobs are dominated by Microsoft and Amazon. Google is also starting to make strides in the area. But if you decide, like I did, that you don’t want to work for one of these firms, you are going to be out of luck. You could take a tech job in a company like Boeing, Washington Mutual or Starbucks but if you are like me you want to work for a tech company, not do tech work at a company.
The Southern California job market is just much more diverse. No one employer dominates the area. This hold true outside the tech industry as well. If you are looking for jobs in Entertainment, defense, finance, bio-tech, or any number of other industries you will have better luck here. If you are like me, and your partner is not in the tech industry, this becomes a crucial fact because your partner has to be able to find a job too. Winner: California
Things To Do
This is barely even worth talking about. Southern California just has more to do. Almost anything you can find in Seattle, you can find in Southern California, but the reverse is just not true. Seattle has some great outdoor activities, but so does California, and in California they are accessible year round. California has better arts and entertainment, museums, beaches, shopping, restaurants and attractions. Winner: California
Traffic
However much Seattlites like to complain about the traffic, California is worse. If you don’t like traffic, if it grates on your nerves, then LA might not be the place for you. I try to live close to work to minimize this effect, but the fact remains. Traffic is a bitch in L.A. Winner: Washington
Bottom Line
There can be many factors which way in on your decision to move. The above are mine. I also have family in the L.A. area which is a factor. I also grew up with the smog, so it doesn’t bother me at all. I figure it is probably about 8%-10% more expensive to live in California than Seattle. If you make six-figures like I do, that can be more than $10,000. For that money, you get the nicer weather, more things to do, more job choices, and of course, the short skirts.
What’s that worth to you?
Work, Save, Invest. This is the formula for a successful life. I have used it to make a good life for myself and I hope I can share my thoughts and experiences to help you in yours.
Damnit, you’re just trying to get me to quit my job and move to L.A.!
If it works …
I don’t need to try and convince you to come down here. Just come down here, LA will do all the convincing on its own.
This might fall under “Things to do,” but I’m a food person, so I’m going to call this out as a different category: Diversity of Authentic Ethnic Foods. I love that about CA!
I’m not a food person, hence my reasoning to lump it together with the “Things to do” category. It’s a good point.
Guess the ladies would need the warm weather to wear short skirts. Hmm… you’ve got me thinking about my next vacation spot.
I cannot live without snowboarding.
Winner: Colorado
You can snowboard in California. Might not be quite as good as Colorado, but the snow isn’t bad.
[…] It seems like Double Journey has moved to California! In this post, he talks about whether it was worth it to come down. […]
Terrence, I just found your blog via a FMF comment. Your comparison with CA and WA sparked my interest because it sure feels like a lot of Californians are moving up here!
I do want to respond to your point on cigarette taxes: “They too have a Cigarette tax which is MUCH higher than in California. I don’t smoke, so this doesn’t affect me.”
I’d agree with this statement if you revised it to say “directly affect.” Unfortunately, politicians use this sentiment to get increases pushed through and new taxes created.
The reality is taxes always remove money from the public sector where they can be used productively to the government side of the equation where they likely won’t be used productively. Even when our tax dollars are used well, a percentage of the funds is lost to bureaucracy).
Hi Aaron, Thanks for dropping by and leaving a comment. I know what you mean about it seeming like a lot of people are moving to the NW. It is probably true, especially the last few years because of CA’s ridiculous house prices. But given Seattle’s now equally ridiculous housing prices, and I expect that trend to slow own.
About the cigarette tax. If you know me, you know I hate almost all forms of taxes. I realize they are a necessary evil to live in our society, but think it is silly for government to try and pick sides by making special taxes. It was a point, for the sake of the post, I did not want to make.
Also, being an economist by training, I know that the incidence of the tax is not the same as who is paying for it. So even though I “don’t smoke” I am probably affected by it more than what appears on the surface. Again, not a point I wanted to make in this particular blog post.
Having lived in both places myself, the comparison is spot-on. The terrible traffic in LA leads me to another conclusion: considering that LA is so spread out, jobs are also more spread out. Bad traffic is something you don’t get used to, and can have a lasting negative effect on your happiness (source: The Happiness Hypothesis by Haidt). This means purchasing a house is probably a bad idea in the LA area, unless you think you’re going to work for the same place for more than 5 years, or get lucky enough to find multiple appealing jobs close to your house. I’d ask everyone, how long have you been in *your* current job?
Terrence, I’ve noticed a significant slow down in house and raw land sales in Kitsap county so the demand for housing is definitely slowing to a more reasonable pace.
Regarding taxes, I’m glad I subscribed. I suspect your insights will be interesting. Have you run across EconTalk before? It is a regular “Economics podcasts for daily life” hosted by Russ Roberts. Roberts, a professor, is particularly interested in making economics accessible to the public and has published to novels to that end.
[…] @ Double Journey compares living in California to Washington state. Overall, he’s happy with his decision even though it seems like Washington won more […]
Just thought of something else I really love about CA (albeit food related): In-N-Out (burgers) and Juice-It-Up (smoothies). If anyone ever visits CA, definitely add those two spots in your trip planning.
Very nice writeup and comparison…almost had me convinced to leave Cali.
I wish you focused more on the one crucial fact:
“If you make six-figures like I do” …hmm chances are most people don’t.
This is a bare min. of income in order to rent and not feel as if 70% of your income goes for these “sunny privileges” of having a place to sleep.
Buying a house in Cali is really not an option unless you were born with a bank account or willing sign away next 50 years of your life. Sure, living in outskirts is an option but be ready to hop into your car around 5 am to make it to your 8:00 job. Not to mention the fact that getting there is almost like playing Russian Rule with the rest of the sleepy drivers on the freeways. You should make it home around 8 pm to see your children asleep who probably are more connected to their babysitter than you.
Fake girls are really easy on the eyes and summers are just lovely…you stare at their “investments” while they gage yours located in your back pocket or chrome reflected of your car and accessories.
Bottom line…bring the coins and you will have a time of your life. Come here with intent of earning coins…be prepared to do a lot window shopping and have no quality of life.
Sure there is a lot to do and see in this ‘candy land’…beaches, mountains,rivers,deserts…all in 50-100 miles radius (read 5-6 hours of a road trip)…oh and 5 million other people trying to do the same weekend thing.
At the end of the day it is a rat-race…the only difference is you are rat wearing a short sleeves.
I am here because they make good burgers and smoothies just like Liz said…well, I said “almost had me convinced”.
Thanks for the comment OC Joe.
I do agree, it is definitely harder here to get by on less money. Even with my higher than average salary, I don’t live luxuriously, but part of that is admittedly by choice.
Buying a house is definitely out of the question for most people, but part of that it just inflated housing cost. I think it will go down over the next few years. Look for my post on that subject soon.
All that said, cost of living is expensive in a lot of places outside California. Almost anywhere on either coast is going to be expensive. If you can live in the midwest, and it doesn’t drive you crazy, you can definitely live better for less money. i’ve actually wondered why more people don’t do this.
[…] that I think about it, I actually don’t spend much more money living in California vs. Washington. My rent is $1700 per month. That is about $300 more than a similar place in Washington. Add to the […]
[…] been a little bit over three months since I moved back to California. Was it worth it? Well there are a couple of things to consider. Let’s talk about the negatives […]
hope you don’t plan on having kids…
[…] have no plans to move out of the sunshine anytime soon, but they are making it very hard for me to justify living in California. All I hear on the radio is how L.A. County is about to layoff thousands of teachers. At the […]
[…] to California if you have no money. I have actually never blogged about this, I blogged about the advantages California has as a place to live, but I think it is a pretty interesting idea so I decided to actually write a blog post about […]
[…] this mostly because there have been many things on my mind, not the least of which has been if it is really worth it to live in California. For the most part I think it is. I love most of the things that California has to offer and I […]
when i graduate high school i am moving to california for college and after that i guess im going to stay! =)
[…] on to the question. Was it worth it to move back to California from Washington? Ironically I answer this question the same day that it was pouring rain in Los Angeles. But […]