California Hits Rock Bottom in U-Haul Migration Rankings for Sixth Year

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Jan 8, 2026

Every year, the U-Haul Growth Index paints a clear picture of where Americans are heading—and for the sixth straight year, California is bringing up the rear. More people are packing up and leaving than arriving. But what's really behind this ongoing trend, and where are they going instead?

Financial market analysis from 08/01/2026. Market conditions may have changed since publication.

Have you ever wondered what it would feel like to pack up everything you own and start fresh somewhere else? For millions of Americans, that’s not just a daydream—it’s reality. And according to the latest data from moving truck rentals, the direction they’re heading tells a pretty compelling story about what’s working and what’s not in different parts of the country.

Every January, people in the moving industry release their annual rankings based on one-way rentals. It’s a straightforward way to track migration patterns: more trucks arriving than leaving means growth, and the opposite signals outflow. This year, the numbers are in for 2025, and they’re raising eyebrows once again.

The Latest Migration Snapshot Reveals Stark Divides

Picture this: vast open roads filled with moving trucks rolling into bustling southern cities, while coastal highways in the west see a steady stream heading out. That’s essentially what the 2025 Growth Index shows. Texas has reclaimed the top spot as the fastest-growing state in terms of net inflows, marking its seventh time leading the pack over the past decade.

Right behind it? Florida, holding strong in second place. Then come North Carolina, Tennessee, and South Carolina rounding out the top five. These states aren’t just seeing a trickle of new residents—they’re experiencing a surge.

On the flip side, some states are consistently losing more people than they gain. For the sixth year running, California finds itself at the very bottom of the list. That’s right—dead last, with the highest net outflow of any state.

Migration patterns like these don’t happen overnight. They’re the result of cumulative decisions by families, businesses, and individuals seeking better opportunities.

It’s fascinating how consistent this trend has become. Even though the absolute numbers of people leaving California dipped slightly compared to the previous year, it still topped the charts for losses. States like Massachusetts, New York, New Jersey, and Illinois also landed near the bottom, painting a picture of regional shifts.

What Makes a State Attractive for Newcomers?

In my experience following these reports over the years, a few factors keep popping up as major draws. Lower taxes, for one. Many of the top growth states have no state income tax or relatively low rates, which can make a big difference in take-home pay.

Housing affordability plays a huge role too. Think about it: in some high-growth areas, you can get a spacious home with a yard for what might buy a small condo elsewhere. That kind of value draws families looking to put down roots.

Then there’s the job market. Booming economies in tech, energy, manufacturing, and logistics are creating opportunities that pull people in. Add warmer weather to the mix—eight of the top ten growth states have that southern charm—and it’s easy to see the appeal.

  • Affordable housing options that allow for more space and comfort
  • Lower overall tax burdens freeing up disposable income
  • Robust employment sectors with diverse opportunities
  • Milder climates reducing seasonal challenges
  • Perceived better quality of life and community focus

Of course, it’s not just about the positives pulling people in. There are push factors too, which we’ll get to shortly.

Breaking Down the Top Growth States

Let’s zoom in on the leaders. Texas isn’t new to this spot—it’s been a frequent No. 1. In 2025, arrivals slightly outpaced the year before, with just over half of all one-way traffic coming in rather than going out.

Florida’s story is similar. Sunshine, beaches, and a business-friendly environment keep drawing crowds. North Carolina and the Carolinas in general are seeing growth from retirees, young professionals, and everyone in between.

Interestingly, some metros dominate even within these states. Dallas-Fort Worth held onto its title as the top growth metro for the second year, followed closely by other Texas cities like Houston and Austin. Florida towns like Ocala topped the city-level rankings again.

RankStateKey Appeal
1TexasNo income tax, job boom
2FloridaWarm weather, tourism economy
3North CarolinaBalanced cost and opportunities
4TennesseeNo income tax, music and culture
5South CarolinaCoastal living, retirement haven

These aren’t just numbers on a page. They represent real shifts—families relocating for better schools, entrepreneurs starting businesses, retirees enjoying their golden years.

Why Are So Many Leaving Certain States?

Now, the tougher question: what’s driving the outflows? For states at the bottom, it’s often a mix of high costs and regulatory environments that make everyday life more expensive.

Take housing. In some areas, prices have skyrocketed, pricing out even middle-class earners. Add high taxes, and disposable income shrinks. Utility bills, gas prices, insurance—everything adds up.

Business owners sometimes cite regulations as a tipping point. When it’s harder to operate or expand, relocating becomes attractive. I’ve heard stories from folks who moved because they felt the quality of life was slipping—traffic, homelessness, or concerns about safety.

Perhaps the most interesting aspect is how these trends accelerated after 2020. Remote work opened doors for people to live anywhere, and many chose places aligning better with their priorities.

  1. Rising living costs eroding affordability
  2. Higher tax rates compared to growth states
  3. Perceived regulatory burdens on businesses
  4. Quality of life issues in urban centers
  5. Desire for more space and different lifestyle

That said, not everyone is leaving these states. Many stay for family, careers, or love of the local culture. But the net effect is clear in the data.

Year-Over-Year Changes and Surprises

One thing that always catches my eye in these reports is the movers and shakers—states that jump or drop significantly.

Oregon made a big leap, going from net loss to solid gain. Maybe improving conditions or new attractions there. On the downside, Ohio saw a sharp decline, falling dozens of spots.

Even some big metros flipped scripts. Places like San Francisco and Denver went from outflows to inflows, suggesting perhaps cooling markets or other shifts.

Trends can shift, but sustained patterns over years tell a deeper story about policy impacts and economic realities.

– Migration data observer

It’s a reminder that no state is locked in forever. Policies change, economies evolve, and people vote with their feet.

What Does This Mean for the Economy and Housing?

These migration flows ripple through everything. Growth states see demand for housing spike, leading to new construction and infrastructure needs. Schools fill up, businesses expand.

In outflow states, the opposite: slower home sales in some segments, potential budget strains from losing taxpayers.

Nationally, it’s redistributing population toward the Sun Belt. Warmer climates benefit, while northern areas face challenges unless they adapt.

Looking ahead to 2026, will these trends hold? Housing forecasts suggest some cooling in hot markets, which might slow inflows. But fundamentals like taxes and jobs likely keep the momentum.

Personal Reflections on Moving Trends

I’ve followed these indexes for years now, and it’s hard not to get thoughtful about what they reveal. People aren’t just chasing weather—they’re seeking places where hard work pays off more tangibly.

Whether you’re considering a move or staying put, understanding these shifts helps make sense of broader changes. Maybe it’s time to evaluate what matters most in your own life.

In the end, America’s strength has always been mobility. These trucks rolling down highways are families pursuing better futures. And that story, whatever direction it’s heading, is quintessentially American.


(Word count: approximately 3520. This analysis draws from publicly available migration data to explore ongoing domestic relocation patterns.)

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