California’s population growth rate at record low

More people are leaving the state than moving in; that, coupled with fewer births, continues trend.

SACRAMENTO >> More people are leaving California than moving here, continuing a trend that coupled with fewer births has slowed the growth rate in the nation’s most populous state to a record low amid a pandemic that is reshaping its future.

Officially, California added 21,200 people from July 1, 2019, to July 1, 2020, increasing the state’s population a paltry 0.05% to 39.78 million people — still by far the most of any state.

But the bigger news from Wednesday’s new population estimate was that 135,600 more people left the state than moved here. It’s only the 12th time since 1900 the state has had a net migration loss, and the third largest ever recorded.

California became a state in 1850 after a gold rush spurred a massive migration of people moving west to seek their fortune. The state boomed again following World War II because of the aerospace and defense industry, and again in the 1980s and early 1990s as technology companies made Silicon Valley a household name.

That growth slowed for the first time in the mid1990s after the U.S. cut back on its aerospace spending following the end of the Cold War. It happened again during the leadup to the Great Recession in the late 2000s. New population estimates released Wednesday by the state Department of Finance show it’s now happening a third time, as California recorded its third consecutive year of net migration loss.

The reasons why aren’t yet fully understood. In recent weeks, a string of highprofile business leaders have announced they are leaving California for states with lower taxes and fewer regulations — including Tesla CEO Elon Musk and the headquarters of tech giants Oracle and HewlettPackard, whose roots trace back to the founding of Silicon Valley.

A niche industry has emerged around the trend, with real estate agents starting websites like “exitcalifornia.org” and “leavingthebayarea.com” as the state’s median home price hit a record high of more than $712,000 in September.

“With COVID and a lot of tech companies allowing people to work remotely, it’s certainly opened up the door for a lot of people to consider making the move out of California,” said Scott Fuller, a real estate agent.