Additional Coverage:
- Movers Left California and 9 Other States in Droves in 2025 (Is Yours on the List?) (financebuzz.com)
Americans are on the move in search of better affordability, milder climates, and improved financial prospects. Factors such as soaring housing prices, heavy tax burdens, harsh winters, retirement plans, and the flexibility offered by remote work are motivating millions to relocate across state lines.
U-Haul’s 2025 Growth Index, based on over 2.5 million one-way truck rentals, offers insight into these migration trends by comparing where trucks are picked up versus dropped off. While it doesn’t directly measure population growth, the index reveals which states are gaining momentum and which are losing residents.
Here is a look at the top states losing residents as people seek more affordable living and better opportunities:
10. Connecticut
Struggling with high taxes and expensive housing, Connecticut sees continued out-migration. The state enforces a 6.35% sales tax and a progressive income tax with rates up to 6.99%.
Median home prices average around $428,586, with property taxes among the nation’s highest, which can heavily impact fixed-income residents.
9. Michigan
Despite some economic recovery, Michigan experiences a net loss of residents. The state has a 6% sales tax and a flat 4.25% income tax.
While median home prices are more affordable at $279,079, concerns about economic stability persist in certain metro areas.
8. Ohio
Ohio has dropped significantly in the U-Haul rankings. It has a 5.75% sales tax and a flat income tax rate of 2.75% on income over $26,050.
Median home prices average about $264,129, but slower job growth and a 3.9% unemployment rate are prompting residents to leave. Additionally, 12.7% of Ohio’s population lives below the poverty line.
7. Maryland
Close to Washington, D.C., Maryland faces high living costs with a median home price of $433,570. The state applies a 6% sales tax and a progressive income tax topping out at 6.5%, squeezing residents’ budgets.
6. Pennsylvania
Pennsylvania sees steady out-migration driven by moderate housing costs paired with high taxes. Sales tax is 6% (sometimes up to 8%), with a flat income tax rate of 3.07%.
Median home prices are around $310,038, but the state’s property taxes rank 13th highest nationally. Aging housing stock adds maintenance challenges.
5. Massachusetts
Massachusetts residents face a 6.25% sales tax and a progressive income tax reaching 9%. The median home price of $652,846 creates significant affordability challenges even outside major metro areas.
4. New York
High living costs remain a major factor in New York’s population decline. State sales tax is 4%, but with local taxes, some pay up to 8.87%.
The top income tax rate is 10.9%, and median home prices are about $508,323.
3. New Jersey
Among the nation’s priciest states, New Jersey’s sales tax can reach 6.625%, and income tax rates climb to 10.75%. Median home prices near $547,195 and the highest property tax rate in the country at 2.23% make homeownership a challenge.
2. Illinois
Illinois struggles to retain residents amid housing and tax pressures. The state has a 6.25% sales tax and a flat income tax of 4.95%.
Median home prices sit at $327,918, but high property taxes and limited job mobility remain concerns.
1. California
For six consecutive years, California ranks last on the U-Haul Growth Index, reflecting a persistent exodus. The state charges a 7.25% sales tax, with local taxes up to 2%, and a top income tax rate of 13.3%, the highest nationwide.
Median home prices average $770,339, placing homeownership out of reach for many.
The Takeaway
As Americans pursue warmer weather and affordable living, high-cost states are losing more residents than they gain.
If you’re feeling squeezed by rent or taxes, understanding these migration trends may help you decide if a move makes sense. Consulting a financial expert can also provide clarity on your personal situation.
While lower-cost housing is attractive, a strong financial plan will serve you well wherever you live.
Money Tips for Everyone
No matter your financial situation, there are steps to improve your wealth:
- Increase Your Income: Consider side gigs or ways to keep more of your paycheck.
- Grow Your Savings: Leverage compound interest and get a clear picture of your finances.
Professional advice can help you retire earlier.
- Seize Opportunities: Maximize discounts, benefits, and ensure you have the best rates on expenses like car insurance.
Avoid hidden money drains.
Making smart financial moves today can set you up for a more secure tomorrow, wherever you choose to call home.