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Over recent years, a notable migration pattern has emerged as many Americans opt to leave high-cost states in favor of more affordable locales. While initially sparked by the pandemic, this trend has solidified into a lasting shift, especially among retirees seeking to stretch their savings.
Data from the U.S. Census and moving companies highlight that states with steep living expenses are experiencing significant outbound migration. Here’s a closer look at the states retirees are departing-and the destinations drawing them in.
States Seeing the Most Outbound Retiree Migration
1. California
California tops the list as a major source of outbound movers. IRS data indicates the state lost about $11.9 billion in adjusted gross income due to domestic migration, along with a net population decline of over 250,000 residents.
High taxes on retirement income and some of the nation’s priciest housing markets are key reasons retirees are heading elsewhere.
2. New Jersey
Frequently appearing near the top of outbound migration statistics, New Jersey saw 62% of moves involving the state in 2025 being outbound, according to United Van Lines. Although the state boasts excellent healthcare and public services, elevated property taxes and overall living costs are pushing retirees away.
3. Illinois
Illinois continues to export more residents than it attracts, despite a slight balancing in recent years. High property and income taxes, combined with soaring housing costs, are common concerns prompting retirees to look for more affordable alternatives.
4. Connecticut
Despite high marks for healthcare and quality of life, Connecticut recorded fewer inbound moves relative to outbound ones in early 2026. Rising taxes, housing prices, and insurance costs are making it harder for retirees’ savings to keep pace.
5. Louisiana
Louisiana faces significant outbound migration, with 66% of moves being outbound in 2025. Factors include housing affordability challenges, elevated home insurance costs in hurricane-prone areas, and many homeowners struggling with underwater mortgages.
Popular Retirement Destinations Gaining Momentum
1. Florida
Florida remains the top retirement destination, welcoming a net gain of over 44,000 retirees in 2025. However, rising home prices, high insurance premiums, and concerns about climate and congestion are causing some retirees to reconsider or delay their moves.
2. South Carolina
Emerging as a strong competitor to Florida, South Carolina boasts an inbound-to-outbound move ratio above 2.0 in 2026. Affordable housing, lower property taxes, and manageable living costs attract a growing number of retirees, particularly in areas like Myrtle Beach.
3. Texas
Though Texas’ rapid growth has moderated, it still draws retirees with its lack of state income tax and pockets of affordable housing. The inbound-to-outbound migration ratio, while lower than its 2021 peak, remains favorable.
4. North Carolina
North Carolina continues to draw retirees due to its affordable housing, pleasant climate, expanding healthcare options, and attractive natural surroundings. United Van Lines reported nearly 58% of moves to the state were inbound in 2025.
5. Tennessee
Tennessee has consistently ranked as a top inbound migration state, with Nashville in particular attracting retirees seeking lower costs alongside vibrant urban amenities. The absence of a state income tax is a strong incentive.
6. Idaho
Idaho is one of the standout success stories, ranking second nationally for inbound migration in mid-2026. Many retirees are relocating from high-cost states like California and Washington, attracted by outdoor recreation, lower taxes, and reduced congestion.
The Bottom Line
Retirement migration is increasingly driven by economic factors rather than just climate or lifestyle preferences. Escaping high taxes and unaffordable living expenses allows retirees to maximize their savings and benefits. Analysts predict states such as Alaska, Idaho, South Carolina, Maine, and Arkansas will continue to see strong inbound migration through the end of 2026.
Practical Money Tips for Retirees and All Savers
No matter your age or income, there are always opportunities to improve your financial health:
- Increase your income: Explore side gigs or other avenues to supplement your earnings, even while working full time.
- Grow your wealth: Start with a clear understanding of your finances and consider working with a professional to leverage time and compound interest effectively.
- Maximize savings: Take advantage of senior discounts, shop for better insurance rates, and steer clear of financial pitfalls that quietly drain your resources.
By making moves grounded in financial sense, retirees are reshaping the migration landscape-proving that when it comes to relocation, the numbers often tell the most compelling story.