Something big started shifting in Los Angeles around 2020 and it has not stopped. Thousands of homeowners who used to anchor their entire life around a commute to an office realized that the job no longer required them to live within driving distance of downtown LA or Century City or Culver City.
And a lot of them decided to cash out.
LA home equity is one of the most powerful financial tools a homeowner can have. If you bought a home five or ten years ago in almost any part of Southern California, you are sitting on a serious amount of equity. When remote work made location flexible, sellers started asking a question a lot of people had never seriously considered before: if I do not have to live here, why am I paying to live here?
Let me walk you through where LA sellers are actually moving, what is driving those choices, and what you need to think about before you make this kind of move yourself.
How Remote Work Changed the Math for LA Homeowners
Before remote work became mainstream, your job was the anchor. You lived within a reasonable distance of your office because you had to be there most days of the week. For people in Los Angeles, that often meant paying premium prices to live in areas with manageable commute times, places like the Westside, the Valley, or the South Bay.
According to the U.S. Bureau of Labor Statistics, the share of workers who worked from home at least part of the time remained significantly elevated compared to pre-2020 levels, particularly in professional, technical, and information services, which are all heavily represented in the Los Angeles job market.
When the commute disappeared, so did the need to pay $800,000 or $1.2 million for a modest house in a neighborhood you chose primarily because it was close to your job. That is when the migration started in a big way.
What LA Sellers Are Looking for in Their Next Home
Sellers leaving LA are not just chasing lower prices, though that is definitely part of it. They are chasing a different lifestyle. More space, a bigger yard, a quieter neighborhood, access to nature, and a community that does not feel like a constant race to stay ahead.
A lot of these buyers are also thinking about what their money can do somewhere else. In LA, $600,000 might get you a two-bedroom condo. In certain parts of Texas, Arizona, or Nevada, that same budget could put you in a four-bedroom home with a pool and a three-car garage. For a family that no longer needs to commute, that comparison is hard to ignore.
Top Destinations Where LA Sellers Are Relocating
Within California: Moving to More Affordable Markets
Not everyone leaving Los Angeles is leaving California. A significant number of LA sellers are moving within the state, trading in their LA property for a home in a more affordable California city where their equity goes much further.
Popular in-state destinations include Riverside and San Bernardino counties in the Inland Empire, which saw a surge in demand from LA transplants. Cities like Murrieta, Temecula, and Victorville attracted buyers who wanted more space and could accept a longer drive for occasional trips to LA. Sacramento and Fresno have also seen notable increases in buyers coming from Southern California, particularly remote workers in tech and creative fields.
| Destination | Why LA Sellers Choose It | Average Home Price vs LA |
|---|---|---|
| Inland Empire (Riverside/SB) | Close to LA, more space, lower cost | 40 to 50 percent lower |
| Sacramento | Still in California, outdoor lifestyle | 50 to 60 percent lower |
| Las Vegas, NV | No state income tax, warm climate, affordability | 55 to 65 percent lower |
| Phoenix, AZ | Low cost of living, growing job market | 50 to 60 percent lower |
| Austin, TX | Tech hub, no income tax, fast growth | Varies widely |
| Boise, ID | Outdoor lifestyle, strong community feel | 50 percent lower |
Out of State: The Most Popular Landing Spots for LA Expats
For sellers who are ready to leave California entirely, the list of top destinations is fairly consistent. Nevada, Texas, and Arizona have topped the charts for years, and that has not changed much even as those markets have grown more expensive themselves.
According to the U.S. Census Bureau, California has seen net domestic out-migration in recent years, with many former residents choosing no-income-tax states like Nevada, Texas, and Florida as their new homes. For a seller walking away from an LA home with $400,000 or $500,000 in equity, the combination of lower home prices and no state income tax in these destinations creates a financial situation that is hard to pass up.
Las Vegas is popular for its proximity to Southern California, no state income tax, and desert climate. Phoenix has grown fast and attracts people who want warm weather and a slower pace without sacrificing city amenities. Boise, Idaho and parts of Colorado have attracted buyers looking for mountains, outdoor activities, and a strong sense of community.
What to Think About Before You Sell and Move
Your Equity Is the Engine of This Whole Decision
Everything about this kind of move starts with your equity position. Before you decide where to go, you need to know exactly what you will walk away with after your LA sale. That means understanding your mortgage payoff, your estimated closing costs, and whether you might owe capital gains tax on your profit.
A lot of sellers are surprised to find out how much of their equity gets eaten up by agent commissions, transfer taxes, and unexpected repair costs demanded by buyers. If you want a cleaner exit that puts more equity in your pocket, selling directly to a cash buyer is worth considering. You might also want to know how you can access some of that equity even before your house officially closes, which is covered in detail in this post: how to get an equity advance before your house closes.
Timing the Sale and the Move Together
One of the trickiest parts of the LA-to-anywhere migration is timing. You need to sell your LA home before you can buy somewhere else, but you also do not want to be homeless in between. This is something a lot of sellers do not think through carefully enough until they are in the middle of it.
A sale-leaseback arrangement is one way to handle this. You sell your home, collect your proceeds, and then rent back from the buyer for 30 to 60 days while you finalize your new home purchase or rental. We wrote about exactly how this works in this guide: how to sell your house and rent it back while you find a new home.
What the Data Says About Where People Are Actually Going
The Numbers Behind the Migration
It is easy to assume the LA exodus is just noise, but the data tells a real story. According to the National Association of Realtors, California consistently ranks among the top states for outbound migration, with Southern California driving a large share of those moves. The primary reasons cited by movers are housing affordability, high cost of living, and the ability to work remotely.
That last one is the new factor. People have always left expensive cities. But in the past, they often came back when career opportunities pulled them in. Now, for a growing share of professionals, there is no career reason to come back. The work travels with them.
What Remote Work Migrants Prioritize in Their New Markets
Sellers moving from LA are not a random sample of homebuyers. They tend to have higher-than-average home equity, stable incomes, and specific preferences for what they want in their next location. Understanding this can help you if you are still deciding where to land.
- Lower property taxes relative to home value
- No or low state income tax, which matters a lot for high earners
- Good internet infrastructure for consistent remote work
- Access to good schools, especially for families with younger kids
- Outdoor recreation and a calmer pace of daily life
- A growing local economy that is not entirely dependent on one industry
- Shorter commutes for occasional in-person meetings or travel
If you are ready to explore what your LA home could sell for and how much equity you could walk away with, visit the Buy Your Properties home page to see how the process works. And if you have questions about your specific situation, feel free to reach out through the Contact Us page and we will be glad to help.
Conclusion
The work-from-home migration out of Los Angeles is not a trend that is going to reverse itself anytime soon. Remote and hybrid work has permanently changed how people think about where they live, and LA sellers are taking advantage of that shift in a big way.
If you have been thinking about selling your LA home and relocating somewhere your equity goes further, you are not alone and you are not crazy. A lot of people have already done it and are living better for it. The key is making sure your LA sale is handled well so you walk away with the maximum amount of equity possible to fuel your next chapter.
Frequently Asked Questions
Where are most people moving after selling in Los Angeles?
The most popular destinations for LA sellers include the Inland Empire within California, along with Nevada, Arizona, Texas, Idaho, and parts of Colorado. These areas offer significantly lower home prices and, in many cases, no state income tax.
Is the work-from-home migration from LA still happening?
Yes. While the initial surge happened in 2020 and 2021, remote and hybrid work arrangements have remained common, and outbound migration from California is still above pre-pandemic levels according to recent Census Bureau data.
How much equity can an LA seller expect to walk away with?
That depends on when you bought, your mortgage balance, and how you sell. Many sellers who have owned their homes for five or more years have $300,000 to $600,000 or more in equity, though agent commissions and closing costs can reduce that number meaningfully.
What is the biggest challenge for LA sellers who want to move out of state?
Timing is usually the biggest challenge. You need to sell your LA home and then buy or rent somewhere else without a long gap in between. A rent-back agreement or a bridge loan can help manage this transition smoothly.
Should I sell my LA home before or after I find a place to move?
In most cases, it makes sense to have a clear plan for where you are going before you list your home, but you do not necessarily need to have a place under contract. Using a sale-leaseback or rent-back arrangement gives you time after closing to finalize your next home without rushing.