California sees continued out-migration as residents seek affordability

California Leads in Population Net-Loss

LOS ANGELES – California continues to lead the nation in population net-loss, according to the latest 2025 U-Haul Growth Index. This index tracks more than 2.5 million annual one-way moving transactions.

Texas Reclaims Title as Growth State

The U-Haul Growth Index shows that Texas has reclaimed its title as the number one growth state in the country. Arrivals in Texas accounted for 50.7% of all one-way traffic in the state, according to the latest data.

Top Five Growth States

Following Texas in the top five are Florida, North Carolina, Tennessee, and South Carolina. In contrast, California saw more people leaving via one-way trucks, trailers, and boxes than any other state.

California’s Ongoing Out-Migration

While California saw a slightly smaller net loss compared to 2024, it remains at the bottom of the rankings for the sixth year in a row. Residents are looking for more affordable regions.

Bottom Five States

Joining California in the bottom five are Massachusetts, New York, New Jersey, and Illinois. The data indicates that Southern states are successfully attracting residents, with eight of the top 10 growth states located in the South.

Geographic and Political Patterns

The movement of residents appears to follow distinct geographic and political patterns. Northern states, particularly in the Northeast and Midwest, make up eight of the bottom 10 markets for migration.

Weather and Growth

On the other hand, sunshine and warmer weather continue to be a draw. The Southeast claims four of the top five growth spots.

Political Trends in Migration

The report also highlights a political trend in migration. Nine of the top 10 growth states voted Republican in the last presidential election. Seven currently feature Republican governors, according to the latest data.

Democratic States in the Bottom Ten

In the bottom 10, nine states have Democratic governors. Seven voted for the Democratic candidate in the most recent presidential cycle.

Understanding the U-Haul Growth Index

The U-Haul Growth Index is compiled from one-way transactions across the U.S. and Canada. While these rankings do not correlate directly to total population or economic growth, they serve as a widely used indicator of how well states and cities are maintaining their resident base.

California Exodus and Cost of Living

For California, the trend of high out-migration is not new. Affordability concerns have driven a multi-year exodus of do-it-yourself movers. The “California Exodus” is often driven by a search for lower costs.

Considerations for Movers

Movers should be aware that “no-income-tax” states like Texas or Florida often make up that revenue through higher property or sales taxes. Before finalizing your move, calculate the “all-in” cost of living to ensure your relocation achieves the financial relief you’re looking for.