This is my second article in which am going to reference a TV series which was part of the "Rural Purge” of shows in the early to mid-1970’s. This time it’s the “Beverly Hillbillies”. Jed Clampett, the family’s matriarch, discovers oil on his property, makes a million dollars, and loads up his family and moves to California. Now, the family was from Missouri, but Grannie was originally from Tennessee, which is close enough for the purposes of our discussion here. Used to, when you made it big you moved from rural areas to the luxury urban area, especially to California. Now it seems that the opposite tends to be true. Increasingly, residents of California are relocating to Tennessee, for whatever reason they may have. This article doesn’t discuss the reasons why there is a migration but acknowledges that people are relocating from California to Tennessee and what to expect if or when you do.

Picking up and moving halfway across the country is a big decision. If you are planning a relocation to Tennessee, it really is more than just packing boxes, hiring movers, selling your current house (if you have one), and buying a new one at your destination. Tennessee, and the South of the United States in whole, offers a different lifestyle with its unique charms but fantastic opportunities. Compared to California you can expect a lower cost of living with housing, taxes and everyday expenses being generally more affordable. Let’s take a deeper dive into why Tennessee may be your destination of choice for your relocation from California. From lifestyle changes to economic benefits, we cover it all.

Why Tennessee and Not Somewhere Else?

There is a reason why so many businesses are flocking to Tennessee. Because it is an appealing destination for business and people. If you are seeking a more “laid-back” lifestyle, slower pace and more space, it is waiting for you in Tennessee. Some may associate “laid-back” with “lazy”, but rest assured, the number of manufacturing, production, and service industries relocating or opening in Tennessee would not be doing so unless there was an educated, motivated workforce to meet their needs. The state's cultural richness adds to its allure.

Here are some examples of why people are choosing to move:

● Cost of Living: Expenses are much lower in Tennessee than in California. Two major ones are housing and energy. The median home price in California is currently $828,900 while Tennessee’s is $395,800. California’s energy cost is anywhere from 25-40% higher than Tennessee. We will get into more detail about Cost of Living later.

● No State Income Tax in Tennessee: Tennessee doesn't tax wages, a huge draw for many.

● Natural Beauty: The reason Tennessee has 3 stars on its state flag is because of its 3 distinct regions. West Tennessee with the Mississippi River and plans for crops and livestock. Middle Tennessee with a mix of pastures and rolling hills. And East Tennessee with the Smoky Mountains.

● Community Feel: Tennessee is known at the “Volunteer State”. Why? Because Tennessean’s stepped up when their country needed them, especially in the war of 1812.j Southern hospitality is not just some idealistic expression; it’s a real thing, rooted in a history of values and self-determination.

● Job Opportunities: We have seen tremendous growth in manufacturing and in the service industry sector. New vehicle production plants are planned such as Ford in Jackson, TN and Ultium Battery in Spring Hill, TN. Multiple hospital and healthcare corporations are based in the Nashville area.

● Culturally Rich Food: There is only room to talk about one dish so we will talk about grits. Grits are a Southern breakfast staple and are basically rough or fine ground corn. They can be eaten alone or with any other dish. They also come in two “traditional” colors, white and yellow. The choice is yours. People will argue the best way of making them, boiling with just some salt and water, or by adding milk, cheese, or butter. We say try them all and make up your own mind.

Cost of Living: California vs. Tennessee

One factor that attracts people to move from California to Tennessee is the difference in cost of living. Daily expenses and major purchases tend to be less expensive in Tennessee because of lower taxation, less regulatory burdens which is passed onto the consumer, and lowered labor costs. This can impact how individuals and families plan their finances.

When comparing living expenses, we must look at a few of the areas where we can have some of our largest expenditures. These include the “Big 5” of housing, utilities, groceries, transportation, and taxes.

Housing costs are typically lower in Tennessee, with rent and property prices often below those found in California. As a result, residents may be able to obtain more space for the same amount of money. Including larger homes or homes with more land. Lower housing costs are frequently cited by those choosing to relocate.

Utility rates are lower in Tennessee because of less regulatory burdens by the State government and less demand on the supply and infrastructure. Tennessee benefits from the Tennessee Valley Authority (TVA) which is a Federally owned utility that provides low-cost power through a mix of sources such as hydroelectric, nuclear, and fossil fuel power plants. California, on the other hand, relies heavily on natural gas, renewable energy, and imported energy which is not as reliable and is more expensive due to infrastructure cost and market fluctuations.

Grocery prices in Tennessee are generally less expensive than in California due to lower transportation costs for delivering products to market, thanks to the state’s proximity to agricultural hubs in the Midwest and South. The competitive retail market within the state, along with streamlined supply chains, also contribute to maintaining lower grocery prices.

Labor costs are lower in Tennessee reducing overhead for retailers, and the lower cost of living allows retailers to price goods more affordably for customers. Operating in a less regulated environment further decreases costs, as Tennessee has fewer compliance burdens than California’s stringent regulations.

Transportation costs are also lower in Tennessee. The cost of a gallon of gasoline in Tennessee is about 40% lower than that of California. Also, commutes are less congested and therefor take less time burning less fuel. Tennessee’s public transportation system is less developed than California but that does keep its cost lower and less of a tax burden.

Living in Tennessee offers the advantage of low property taxes and no state income tax, significantly reducing overall living costs. Without a state income tax residents are allowed to retain more of their earnings, making the state more highly attractive. These financial benefits result in substantial savings compared to California, where high taxes increase those same expenses. The combination of lower taxes and affordable daily expenses makes relocating from California to Tennessee particularly appealing. These savings may not only enhance your financial flexibility but your overall quality of life as well.

Tennessee Housing Market

Many Californians discover they can afford larger, more spacious homes in Tennessee due to the state’s competitive yet reasonably priced real estate market, making the dream of owning a comfortable home more realistic. California’s median home price is currently almost double that of Tennessee. Homes with land and room for horses, mini-farms, outdoor recreation and activities are more than just a dream in Tennessee, they are attainable. With Tennessee’s growth many new construction communities have been developed or are currently under development. The luxury home market in Tennessee has also begun to flourish. The migration of high-income earners from other states has also brought the need for more high-end custom homes and developments. Like anywhere else, the farther one gets from urban hubs the more affordable housing becomes, so location is still key in Tennessee real estate.

Education and Schools

California has been traditionally blessed with several excellent post-secondary institutions. California does spend more per pupil than Tennessee, $14,000-16,000 versus $10,000-$11,000 respectively. However, that does not translate into higher scores on standardized tests. Both states rank below the national average with Tennessee doing a little better than California.

Tennessee has been focusing on school choice voucher programs and in 2025 the Governor signed the “Tennessee Education Freedom Scholarship Act” which provides school voucher funds for all Tennessee K-12 students, who are state residents and lawfully present in the U.S., regardless of income or prior school enrollment. Each scholarship provides around $7,300 a year, which can be used for private school tuition, fees, uniforms, technology, transportation, tutoring, afterschool programs, college entrance exams, or state-recognized certifications. Families will cover any additional costs, as the voucher may not fully cover all the private school tuition.

Final Thoughts: Embracing Life in Tennessee

No matter where you are locating from, Tennessee has something to offer for everyone, from the plains of the Mississippi delta to the Smoky Mountains and rolling hills in between. Over the last few years, there have been a lot of people who are new to Tennessee but came here because of what Tennessee is, a place to find your home, raise your family, and opportunity to grow personally and financially.

Both states have beautiful natural scenery and wonderful people. Relocating, especially from family, friends, or lifelong roots to a community is difficult. If you decide that relocation is necessary, Team Romines at Keller Williams Realty would love to be your real estate agent of choice. You can trust us for your relocation from California to Tennessee. We are expert real estate agents specialized in finding the right home for you in one of Tennessee’s vibrant communities. With deep knowledge of the Middle Tennessee housing market and Southern lifestyle, we are here to guide you through every step of your move. Trust us for your personalized service, leveraging our expertise in Tennessee real estate and connections across the state to secure your dream home.