Apartment developers and investors are always in the market for good information before they consider a project. A Storage Cafe research team recently analyzed why Arizona has become a hub for Southern California residents.

With about 173 Californians moving to Arizona every day, the state is quickly becoming one of the West’s hottest relocation hubs. In the last decade, over 630,000 Californians—roughly the size of Tucson’s population— have made Arizona their new home.

Major Draws:

• With home prices averaging $321,000—nearly half of California’s $659,000—Arizona offers a far more attainable path to homeownership.
• Renters also benefit, saving an average of 30% as Arizona apartments come at a fraction of California’s prices.
• Plus, Arizona’s income tax rate is just 2.5%, a stark contrast to California’s 13.3%, offering newcomers significant financial relief.

Who’s Moving?

• Millennials: Leading the way, millennials make up 26% of newcomers, with about 17,500 people relocating annually.
• Gen Z: Close behind, Gen Z accounts for 20% of the migration, bringing in around 13,500 new residents each year.
• Baby Boomers: Representing 18% of movers, roughly 12,000 baby boomers relocate annually, often drawn by Arizona’s affordable retirement options.