Why are so Many Dow Incorporated Retirees Moving to California?

In 2022, California experienced a significant demographic shift, with an inflow of 475,803 residents from other states, positioning it as the third most popular destination for domestic movers in the United States. This influx, comparable in scale to the populations of cities like Long Beach or Oakland, is primarily comprised of individuals relocating from Texas, Washington, New York, Florida, and Arizona. These states collectively contributed over 161,310 new Californians. In contrast, states like West Virginia, North Dakota, South Dakota, New Hampshire, and Mississippi witnessed minimal outmigration to California, with West Virginia only losing 42 residents.

Interestingly, when analyzed relative to the originating states' populations, Hawaii leads in per capita migration to California, with 75 out of every 10,000 residents relocating. This is followed by Nevada, the District of Columbia, Oregon, and Washington. Conversely, the least migration relative to state population came from West Virginia, Mississippi, and Arkansas.

California's appeal varied across the nation. The state saw a substantial increase in newcomers from Texas, Nevada, Utah, New Jersey, and Florida. However, it experienced a decline in migrants from Washington, Wisconsin, Oklahoma, Arkansas, and South Dakota. The most significant proportional increases were from Maine, Utah, and Idaho, while the largest declines were from West Virginia, North Dakota, and South Dakota.

Despite these influxes, California faced a net outmigration of 341,866 people, the highest in the country, driven by 817,669 residents leaving the state. This net loss highlights California's challenge in attracting new residents compared to its large population. Its resident attraction rate stands at 1.2%, the lowest among all states. Other states like New York, Michigan, Louisiana, and Ohio also have low attraction rates, while the District of Columbia, Alaska, Wyoming, Idaho, and Delaware have the highest proportions of new residents relative to their populations.

Texas and Florida, often considered California's primary competitors in attracting new residents, rank 40th and 19th, respectively, in terms of their resident attraction rates. This comparison underscores the unique demographic challenges and opportunities each state faces in the ever-evolving landscape of domestic migration in the United States.

California, known for its higher cost of living, also imposes one of the highest state income tax rates in the U.S., which can significantly affect retirement income. This is crucial for retirees or those nearing retirement, as they often rely on fixed incomes. According to a Kiplinger report published in May 2023, California does not offer any special tax breaks for Social Security income or other types of retirement income, which could influence the financial planning of Dow Incorporated retirees considering relocating to the state.

The implications of these migration trends are multifaceted, affecting economic, social, and political dynamics within California and across the nation. As states continue to compete for residents, understanding and adapting to these patterns becomes crucial for policymakers, businesses, and communities alike.

California's influx of 475,803 new residents in 2022 can be likened to a well-attended grand reunion, where Dow Incorporated retirees from various states, most notably Texas, Washington, New York, Florida, and Arizona, converge in one place. Much like how a reunion brings together family members from across the country, California has become a melting pot for Dow Incorporated professionals from diverse states, each bringing their unique backgrounds and experiences to the Golden State. This demographic gathering echoes the interests of seasoned professionals and retirees who value diverse communities, economic opportunities, and the blending of different cultures and ideas, much like a reunion enriches family bonds and creates a tapestry of shared experiences.