Couple saves thousands annually after relocating from Los Angeles to Midwest

After living in Los Angeles for 22 years, Julie Taylor and her husband moved to Joplin, Missouri, in 2021. The transition from a large California city to the Midwest brought many changes, with one of the most significant being financial savings.

The couple decided on a change due to their daughter graduating high school and Taylor's office job becoming remote. They were also looking to escape escalating bills that had strained their finances for over two decades. The move proved financially beneficial.

In Missouri, their monthly expenses dropped to about a third of what they had been paying in California. Housing costs represented the most substantial savings. Homes in Joplin are typically listed at $224,950 compared to $1.23 million in Los Angeles. Their mortgage payment decreased from $4,012 per month to $1,349.

"Swapping mortgages added up to a savings of $31,956 per year," said Taylor.

California’s high housing costs have driven many residents out of state. "In July 2024, the median listing price in Missouri was 60% below California’s median listing price and 30% below the national median," said Hannah Jones, Realtor.com® senior economic research analyst.

Beyond housing, other living expenses were significantly lower in Missouri:

- Property taxes: Annual savings of $6,391

- Earthquake insurance: Annual savings of $681

- Auto insurance: Annual savings of $1,968

- Pet insurance: Annual savings of $768

- Wi-Fi costs: Annual savings of $624

- Gas prices: Annual savings of $4,320

According to regional price parity data comparing goods' prices across states, "California has the highest price levels of all U.S. states while Missouri is among the most affordable," said Jones.

However, not everything is cheaper in Missouri. Grocery costs remain similar between both states at around $150 per week for two people. Utilities are slightly more expensive by an additional $108 annually. Home insurance is higher in Missouri at $2,179 per year compared to California's $1,188 but comes with a lower deductible.

Missouri residents also pay personal property tax based on taxable personal property value such as boats and cars costing approximately $500 annually—a tax absent in California.

Despite these additional costs, Taylor estimates annual savings amounting to approximately $46,100 since moving.

"The median household income in Missouri was $65,000 in 2022 compared to California's $92,000 and the U.S.'s average of $75,000," noted Jones. Lower living and housing expenses allow Missourians with median incomes to afford homes comfortably—something less feasible for Californians despite higher earnings.

While there are aspects she misses about Los Angeles like diverse food options and entertainment venues such as Hollywood Bowl or Greek Theatre—now requiring travel—Taylor finds date nights cheaper and traffic lighter allowing easy access to nearby cities like Bentonville or Tulsa.

"Going out in Joplin is far more affordable than on the West Coast," shared Taylor citing U.S Census data showing average restaurant spending over two weeks being lower than California's during June 2024 period ($102.50 vs.$140 .29).

Reflecting on whether moving was worth it; although challenging leaving familiar surroundings behind—Taylor feels less stressed without dealing with Californian traffic pressures . Her husband opened 'The Living Room' bar which would have been prohibitively expensive back west enabling them greater financial freedom pursuing dreams .

"We’ve put much saved money towards our kids’ college tuition—a constant worry back home—and now sleep easier knowing life here offers affordability enabling us finally progress financially rather than merely staying afloat."