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By Giulia Carbonaro
Senior Reporter
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Rich Californians are increasingly looking at neighboring Nevada to escape an expected increase in taxes targeting the wealthy in the Golden State, with Realtor.com data showing a growing number of high-net-worth Angelenos and San Joseans seeking homes in Las Vegas and its suburbs.
By the end of last year, over 23 percent of Realtor.com listing views in Las Vegas originated from Los Angeles, according to the real estate brokerage.
That made the City of Angels the largest source of out-of-market demand in Sin City, followed by another California city, San Jose—which represented over 8 percent of listing views for homes in Las Vegas. Riverside, also in California, placed fourth with almost 4 percent.
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Why It Matters
Housing costs have skyrocketed across the country since the pandemic, with home prices, mortgage rates, property taxes and homeowners insurance premiums shooting through the roof. In California, one of the most expensive housing markets in the country, the median sale price of a home—at $780,200—is now almost double the nationwide median of $423,261.
While the state also has one of the highest household incomes in the nation, California has been hemorrhaging residents in recent years as they seek a more affordable cost of living. This exodus includes some of California's wealthiest residents, who are being attracted by lower tax environments in other states.
What To Know
California currently has the highest concentration of billionaires in the country, estimated at 200 to 250. The prospect of a "wealth tax" targeting the rich, however, has prompted many to consider relocating to other states, according to Realtor.com.
The proposal, known as the Billionaire Tax Act, was backed by the Service Employees International Union-United Healthcare Workers West and would need about 875,000 signatures to be added to the state's general election ballot in November. If passed, it would impose a one-time 5 percent tax on the net worth of residents with assets exceeding $1 billion.
Crucially, it would work retroactively, affecting anyone who resided in California as of January 1, 2026.
"The reason they did this is obvious," Christopher Manes of Manes Law previously said in a statement, according to CNBC. "If they had made the date in November, after passage, you'd have 200 people who could get out in time and save millions of dollars."
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But the retroactive date hasn't stopped billionaires from leaving the state. California tech billionaire Peter Thiel said in December that he had "established a significant presence in Miami over the last several years, maintaining a personal residence in the city since 2020" and was planning to shift more of his time out of the Golden State.
Google co-founder Larry Page has been rumored to be contemplating a similar move out of California.
Las Vegas, a former pandemic darling that has been slumping in the past couple of years, is emerging as a winner out of California's troubles, with local Realtors reporting an increase in interest from the Golden State's high-income buyers.
"There has been a noticeable increase in affluent buyers relocating from California," Tania Jhayem, a real estate agent in the luxury division at Keller Williams the Marketplace in Las Vegas, told Realtor.com.
"Many of these clients are selling higher-priced homes in coastal markets and bringing significant equity with them, which allows them to purchase luxury properties here either with large down payments or all cash," she continued.
Compared to many of the California markets, Las Vegas offers much more affordable homes. In January, the typical home in Los Angeles and San Jose cost $1,025,000 and $1,119,000, respectively—the highest in the U.S. and almost three times the national figure, according to the latest Realtor.com monthly housing market trends report.
In the same month, the median listing price in Las Vegas was $465,000.
On top of that, Nevada has no income tax, allowing wealthy Californians who move there to save a significant portion of their earnings.
What People Are Saying
Tania Jhayem, a real estate agent at Keller Williams the Marketplace, told Realtor.com: "Buyers feel they can preserve wealth, enjoy newer housing inventory, and maintain proximity to the West Coast while benefiting from Nevada's tax structure and lower cost of ownership."
Hannah Jones, a senior economic research analyst at Realtor.com, said in a statement: "With no state income tax and far greater buying power, Vegas allows Californians to upgrade in home size, quality, or location in ways that are increasingly out of reach in coastal California markets."
What Happens Next
It remains to be seen whether the wealth tax proposal will make it onto the ballot in November. Governor Gavin Newsom has vowed to kill the proposal, saying it will drive wealthy residents out of the state.
"This will be defeated—there's no question in my mind," the Democratic governor told The New York Times in January. "I'll do what I have to do to protect the state."
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