In order to save money, a California company that manufactures workbenches and lab furniture is relocating to Goodyear, near Phoenix, Arizona, where it will create 30 new jobs.
Matt McConnell, director of sales and marketing for IAC Industries, said that the company is moving from Brea, Calif., to increase the stability and longevity of the business.
“The commercial property costs in California versus the commercial property costs in other states” made the decision easy, according to McConnell.
Twenty IAC employees have moved already or have committed to moving to Goodyear as well.
In 2017, the Census Bureau estimated that Arizona gained 107,628 residents, one of largest population gains in the nation. Analysts told Cronkite News that the rapid population growth should contribute to a promising job market and a strong recovery in housing.
Lower taxes are also attracting new residents to Arizona. State income taxes cost Californians nearly twice as much as Arizonans, with the individual income tax rate at 4.54 percent in Arizona and 9.3 percent in California.
North American Moving Services reported that, in 2017, California was one of the top five states in the U.S. for people moving out. Arizona was the top recipient for inbound moves.
Data from the U.S. Census American Community Surveys indicated that more than 30,000 people have left California for Arizona in each of the past three years.
Oscar Wei, senior economist at the California Association of Realtors, said the cost of living and doing business in California clearly are the main factors influencing people to leave California and move to Arizona.
Wei said, “California is about 60 percent higher than Arizona in general in terms of the state median price.”
The cost of living in Orange County is 56 percent higher than it is in Phoenix, according to NerdWallet.
This information is based upon a report written by Micah Alise Bledsoe, of Cronkite News.