California might be moving but it is in the wrong direction:

High rents and rising home prices are pushing one in every four Californians to consider moving elsewhere in the state or leaving California entirely, says a new statewide survey on places people call home.

While Californians value their quality of life near ocean shores and mountain views, the survey released today shows nearly one-third of those under 35 are considering moves toward cheaper prices and that 52 percent of adults are very concerned their children won't be able to buy homes in their part of the state.

Even many homeowners now see little upside to rising prices that have greatly inflated their property values, believing they couldn't afford to buy another house in their own neighborhoods, said Mark Baldassare, the study's author and statewide survey director for the Public Policy Institute of California.

"We're at a point where it's very hard for people who are moving from other states to think about coming to California," Baldassare said. Instead of being optimistic about life in California, a new generation "coming into the owning stages of their lives ... are exactly the people who are talking about moving elsewhere.

Another study revealed that the median-price of a home in California is $465,000 – a price which only 19 percent of households within the state can afford. The national median-price for a home is $186,600.

This is very sobering news facing a state which is already facing massive budget problems. Their environmental and tax policies are hampering business development and high housing costs are driving out residents. It is important to take note that the people who are leaving are not the wards of the nanny state but rather its patrons.

The old tactic of pushing today's deficit to future years is not going to work for much longer. The issues of illegal immigration, entitlements and hostile taxes will eventually lead to massive reforms and changes or a state which is completely bankrupt. Perhaps that is the only scenario which could finally bring spending to levels that are consistent with income.

The big question is what the federal government's role should be when a state goes bankrupt, especially a state as large as California.