Last updated: May 2026 | By Drew Heberer
I get a few California calls every month now. Three years ago that was almost zero. The pattern is consistent enough that it is worth writing about, because the people calling are usually solving the same problem the wrong way.
The story goes something like this. A Sacramento family bought a house in 2018 for $480,000. Today it is worth $620,000. They are sitting on $300,000-plus in equity after the mortgage payoff. They are tired of California for one of the reasons people get tired of California, and they want to cash out and move somewhere cheaper.
They have already looked at Idaho. They have looked at Tennessee. Recently they started looking at Iowa, which is why I am the one answering the phone.
This post is for two audiences: California sellers thinking about cashing out, and Iowa sellers wondering why their house is getting interest from out-of-state buyers it never got before.
The Sacramento numbers in 2026
Median sale price in Sacramento was $500,000 in March 2026 according to Redfin, down 1.2 percent year-over-year. Sacramento County overall was $533,000, down 2.7 percent. Days on market is averaging 24 days in the city, up from 17 the year before.
That last number is the one to watch. Sacramento is still a fast market relative to most of the country, but compared to its own recent history, things have slowed. Sellers who priced for a 2022 sale cycle are sitting longer than they expected.
East Sacramento, where prices run higher (median $725,000 in March 2026, down 6.5 percent year-over-year), has seen the sharpest correction. Homes there still sell in 18 days on average, but the prices realized are noticeably below where sellers thought they would be.
For California sellers reading this with an eye on cashing out, the math now is different from the math 18 months ago. You still have significant equity. You can still sell quickly. But the top-of-market number you might have hoped for is not there anymore.
Why California keeps losing residents in 2026
The numbers are real. California led the nation in net domestic migration loss for the third consecutive year in 2024-2025, with more residents leaving than arriving. The 2026 migration data is tracking the same pattern.
The reasons split into roughly three categories.
Cost. Median home prices in Sacramento at $500,000, the broader Bay Area at much higher, and a state income tax that tops out at 13.3 percent. For a remote worker or a retiree, the math against almost any other state is brutal.
**Tax. State income tax aside, California’s property tax structure (Prop 13) keeps existing owners’ bills low but penalizes new purchases. So selling a Sacramento property at $620K, then buying a $620K Iowa property at full assessment, means your annual property tax bill might be similar or higher even though the house cost the same. The arbitrage is on income tax, not property tax.
Lifestyle preference shifts. Remote work made geography optional for a meaningful share of professional workers. Once you could work from anywhere, “anywhere” started including markets with shorter commutes and lower stress.
Where Californians are actually going in 2026
The popular narrative is California-to-Texas. That is true but incomplete. The full migration map shows three major flows.
South (the big one). Texas, Tennessee, the Carolinas, Georgia, Florida. Lower cost of living, lower tax burden, warmer weather. Roughly 40 percent of California departures land in these states.
Mountain West. Arizona, Idaho, Nevada, Utah. Closer to home, similar climate to parts of California, faster property appreciation in 2020-2023 (less so in 2024-2025).
Midwest (the emerging one). This is the new flow. Iowa, Minnesota, Wisconsin, Indiana, Ohio. Cheaper homes, lower property tax in absolute dollars, four real seasons. Zillow flagged Midwest cities including South Bend, Indiana and Carmel, Indiana as among the hottest housing markets of 2025. Des Moines has shown up in similar reports.
The Midwest flow is small in absolute numbers compared to the South flow, but it is growing fast year-over-year. The kind of California seller who lands in Iowa specifically tends to be a remote worker looking for value, or a retiree with family roots in the region.
What this means if you are a Sacramento seller
Three honest moves.
Decide whether you actually want to leave or whether you are reacting to a bad year. California still has things California has. Climate, coast, scale of opportunity. If you are leaving because of one tax bill or one neighbor, you might regret it. If you have been thinking about leaving for three years and the only reason you have not is the equity math, then now is when the math works.
Sell strategically, not desperately. A traditional listing in Sacramento still sells in three weeks on average if the property is in decent condition. That is faster than most of the country. You do not need to take a fire-sale offer just because the market cooled a little. Get two CMAs from local agents, get a backup cash offer, then list with realistic pricing.
Plan the destination side before the Sacramento side. Most California-to-Midwest moves I see go wrong because the seller did not actually pick a destination before they put the Sacramento house on the market. They sell, they wire $300K to an escrow account, and they are now homeless in California with three months to figure out where to land. That is a stressful way to make a million-dollar decision.
For Sacramento sellers who do need a fast cash exit (timeline pressure, inherited property, deferred maintenance, divorce, foreclosure timeline), Sacramento Property Solutions is a local team that buys properties as-is and closes in cash on the seller’s timeline. I refer Sacramento sellers their way when the traditional listing path does not fit the situation. They are local, they know the neighborhoods, and they price the property based on a real walkthrough rather than an algorithmic offer from a national platform.
What this means if you are an Iowa seller
Iowa sellers reading this from the home side of the conversation should know that the buyer pool for an Iowa property in 2026 is broader than it was in 2022.
The traditional Iowa buyer was a local move-up family, a retiree relocating from Illinois, or a small landlord. That has not changed. What has changed is that there is now a small but growing layer of out-of-state buyers, including some California refugees, looking for affordable Midwest markets with real seasons and good public schools.
That does not mean you should hold out for the magical California buyer who pays above market. They do not exist. California sellers landing in Iowa pay what local Iowa buyers pay, because the comps set the price either way. But it does mean there are more bidders than there were two years ago, and the market is healthier than the headline numbers suggest.
If you have a Des Moines metro, Cedar Rapids, or surrounding-area property and want a real cash number with a fast close, the form on the homepage is the fastest path.
FAQ
Are California sellers really moving to Iowa in 2026?
Yes, but the absolute numbers are small. The bigger California outflow goes to Texas, Tennessee, and Arizona. The Midwest flow including Iowa has grown year-over-year and now shows up in migration data, but it is still a niche move. Most California-to-Iowa migrants are remote workers, retirees with family roots, or people priced out of mountain-west destinations.
What is the median home price in Sacramento in 2026?
Per Redfin, the City of Sacramento was $500,000 in March 2026 (down 1.2 percent year-over-year), and Sacramento County was $533,000 (down 2.7 percent). East Sacramento ran higher at $725,000.
How fast can I sell my Sacramento house for cash?
A local Sacramento cash buyer typically closes in 7 to 21 days. The exact timeline depends on title issues, HOA payoffs, and whether the property is occupied. Clean title with vacant possession is the 7-day case. Probate, divorce, or active lien situations stretch to 21 days.
Do California cash buyers pay closing costs?
Most local Sacramento cash buyers, including Sacramento Property Solutions, cover standard closing costs as part of the offer. That offsets some of the gap between the cash offer and what a traditional listing would net.
What is the property tax difference between California and Iowa?
Complicated. California’s Prop 13 keeps existing owners’ bills low but resets to market value on sale, so a new $620K California purchase has a significantly higher annual tax bill than a long-held property of the same value. Iowa’s effective property tax rate is higher than California’s nominal rate but the absolute dollars are similar or lower because Iowa home values are lower. Run the actual numbers on the specific properties before assuming Iowa is cheaper on property tax.
Should I list my Sacramento house or sell for cash?
List if the house is in good condition and you have 30 to 60 days. Cash sale if you have a hard timeline, deferred maintenance, or a complicated ownership situation. The cash offer will run 10 to 20 percent below retail, which is the cost of speed and certainty.
If you are on the Iowa side and want a number on your Des Moines metro, Cedar Rapids, or surrounding area property, the offer form on the homepage is the fastest path. If you are on the Sacramento side, the team at sacramentopropertysolutions.com is the call.
About the author
Drew Heberer is a real estate investor with more than a decade in the business. He has helped over a thousand homeowners buy or sell properties in distressed situations across every walk of life. His focus is education. He spends most of his time helping homeowners understand the real options they have when the typical agent path does not fit their situation.