Is Your West Coast State Quietly Draining Your Wealth? 5 More Affordable States for West Coasters to Grow Wealth

John Csiszar

Sun, February 22, 2026 at 6:03 PM GMT+9 4 min read

For many Americans, living on the West Coast is a dream. From the glitz and glamor of Southern California to the outdoorsy Pacific Northwest — and everywhere in between — the West Coast has a lot to offer. In many cases, this includes higher salaries and a higher cost of living.

The U.S. Bureau of Economic Analysis (BEA) tracks overall price levels across states through its Regional Price Parities (RPPs). California is consistently among the most expensive states by this measure, driven heavily by housing costs.

Zillow’s Home Value Index shows the gap starkly: the average California home value is about $756,323, versus roughly $417,884 in Arizona and $441,355 in Nevada. This difference can translate into thousands per month in housing-related cash flow, including mortgage, taxes, maintenance and insurance.

Taxes can add another layer. The Tax Foundation’s 2025 data shows California’s top marginal state income tax rate at 13.3%, among the highest in the nation. When combined with its high housing expenses, there’s no denying that California is a high-cost state.

If you’re looking to enjoy a pleasant lifestyle but want a bit more room in your budget, here are five states that many movers consider as good replacements for the West Coast.

1. Arizona

Arizona is a California substitute for many Americans because of its warm weather and plentiful recreational opportunities. It’s also much more cost-effective for the average American.

For starters, the average home value in Arizona is just $417,540, according to Zillow. This means housing and housing-related expenses are roughly 55% of what the average Californian pays.

Taxes are also generally simpler — and more affordable — in Arizona. Per the Tax Foundation, the state now has a flat income tax rate of just 2.5%.

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2. Nevada

Nevada is another state that shares a border with California and offers numerous financial advantages.

Probably the most famous financial advantage Nevada offers is that it has no state income tax. This is of particular note to high earners, who might otherwise face a state tax of 13.3% in California on top of regular federal income tax.

Housing is also particularly inexpensive in Nevada as compared with California, with an average home price of just $440,161 per Zillow.

3. Idaho

U.S. Census Bureau data shows that migration to Idaho is hot, with 4.2% of the entire population of Idaho having moved there in the past year.

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Idaho offers a combination of appealing factors for those who might otherwise consider the West Coast, including plenty of outdoor activities and lower average home values of $462,426, per Zillow. Many parts of Idaho also offer a smaller-city lifestyle.

4. Utah

Utah is a step further inland than Nevada or Arizona, but it offers incredible beauty and outdoor adventures that often appeal to those who might otherwise live closer to the coast. Housing costs are a bit elevated in Utah, averaging $527,752 according to Zillow, but that’s still just 70% of the average in California.

Utah is another state with a flat tax rate, which can help upper-income residents. Per the Tax Foundation, Utah’s flat tax rate is 4.55%, which is above the rate in some states but well below the upper tiers in the West Coast states of California, Oregon and Washington.

5. Texas

Texas is often mentioned as one of the states that has seen a surge in migration from the West Coast, particularly from California, and the data backs that up. According to the Fall 2024 Texas Relocation Report from Texas Realtors, Texas showed a net migration of 55,000 Californians in 2023. This was likely due in large part to the fact that Texas has no state income tax.

On an overall basis, homes in Texas are also cheap, at an average price of $294,807 according to Zillow. That average should be taken with a grain of salt, however, as much of Texas is rural and costs are much higher in larger cities like San Antonio, Dallas and Houston.

The Bottom Line

California, Oregon and Washington have a lot to offer, but it can cost a pretty penny to enjoy a life there. If you’re willing to part with some of the amenities those states have to offer, you can likely save more money for the long term by hopping a few states over.

With lower housing costs, taxes, and overall cost of living, the five states listed above could be the answer if you don’t want your wealth drained by the West Coast.

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This article originally appeared on GOBankingRates.com: Is Your West Coast State Quietly Draining Your Wealth? 5 More Affordable States for West Coasters to Grow Wealth

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