Hollywood’s Great Escape: Why Celebrities and Film Crews Are Fleeing L.A.—and What It Means for Real Estate

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Once the undisputed capital of global entertainment, Los Angeles is facing a quiet but seismic shift. For decades, it was the city of stars, where every street corner might play host to a movie shoot and every hillside mansion belonged to someone with an Oscar on the shelf. But now, many of those stars are packing up, heading for the hills—and not the Hollywood kind.

Only around 20% of American films and TV shows are still filmed in Los Angeles. The rest have migrated to places like Georgia, Texas, Nevada, and even Canada and Australia, drawn by tax incentives, lower costs, and fewer logistical headaches. As the industry’s gravitational pull weakens, both celebrities and behind-the-scenes professionals are reevaluating whether L.A. is still worth the price.

Mark Wahlberg made headlines when he sold his Beverly Hills estate and relocated to Las Vegas. He didn’t just move—he invested in the city’s future as a production hub, backing a massive studio complex project. Others followed suit: Kevin Costner is building a $100 million studio in Southern Utah, while Zachary Levi is raising funds for a similar project near Austin. The message is clear—Hollywood is no longer tethered to California.

But it’s not just the A-listers. The exodus is happening behind the camera, too. A veteran assistant director who once lived in a cramped Burbank bungalow relocated to a spacious new home in a master-planned Florida community—complete with parks, pools, and peace of mind. “I already flew around for jobs all the time. Now I just do it from a place I actually enjoy living in,” he says.

This migration trend is already reflected in real estate data. In June 2025, nearly 40% of L.A.-based home shoppers on Realtor.com were browsing listings in other states. Popular destinations include Las Vegas, Phoenix, Dallas, and Portland. And it’s easy to see why: the median listing price in Los Angeles is $1.2 million, while it’s just $420,000 in Atlanta and $325,000 in New Orleans. The math is simple—and for many, undeniable.

Add to that the cost of living, which remains one of the highest in the country. “It’s not just whether you can afford it, but whether it’s worth it,” says one real estate agent. For many middle-class professionals, even renting feels like a stretch. And for homeowners, recent challenges like skyrocketing insurance premiums and wildfire risks have made things even more precarious.

The so-called "mansion tax" hasn’t helped, either. A new policy adds a 4% surcharge on properties sold above $5 million, and 5.5% above $10 million. Some sellers have lowered their asking prices to dodge the tax altogether. Others have pulled their listings or opted to skip L.A. real estate entirely.

Then there are the wildfires. In early 2025, more than 12,000 homes and commercial buildings were damaged in fires that swept through areas like Altadena and the Pacific Palisades. New fire zone maps, set to be released this summer, are expected to expand high-risk zones significantly. That means more expensive—and harder-to-obtain—insurance, creating new obstacles for buyers.

But not everyone is moving purely for financial reasons. For some, it’s about privacy and quality of life. “In L.A., you feel watched all the time—by paparazzi, drones, even your neighbors,” says one celebrity real estate agent. “In other states, with big gated lots and fewer prying eyes, people can live with the curtains open.”

The shift isn’t about abandoning dreams—it’s about finding a more livable version of the dream. Luxury homes in suburbs of Austin, the outskirts of Atlanta, even Vancouver, are increasingly being snapped up by entertainment professionals seeking space, peace, and sanity. Many still keep a foothold in L.A., but the city no longer feels like the necessary home base it once was.

Of course, Los Angeles isn’t done for. Real estate is cyclical, and many agents argue that now may actually be a great time to buy. The city’s unmatched weather, cultural diversity, and proximity to mountains and beaches still make it deeply attractive. And for some, the romance of Hollywood still lingers.

Maybe the new reality isn’t one where Hollywood disappears from L.A.—but one where it spreads out, decentralizes, and redefines what it means to be a part of the industry. The cameras might roll in Atlanta or Austin, but the magic? That might still live under the California sun.