Additional Coverage:
- Movers Left California and 9 Other States in Droves in 2025 (Is Yours on the List?) (financebuzz.com)
The Great American Exodus: Where Are Folks Fleeing From in 2025?
It seems Americans are feeling a bit antsy these days, with millions packing up their lives and heading for greener pastures – or, more accurately, warmer, more affordable pastures. From skyrocketing housing costs to hefty tax bills and the ever-present chill of winter, a mix of factors, including the rise of remote work, is fueling a significant cross-state migration.
So, where exactly are people ditching their old digs? U-Haul, everyone’s favorite moving partner, has given us a peek into these shifting patterns with their latest Growth Index.
This isn’t about population numbers directly, but rather a fascinating look at where those familiar orange trucks are picked up and, more importantly, where they’re dropped off. By tracking over 2.5 million one-way rentals in 2025, U-Haul ranks states by their net balance of inbound versus outbound movers, giving us a clear picture of who’s losing residents and why.
The trend is clear: many are seeking financial relief, escaping high-cost regions in pursuit of a better bottom line. Here are the states that saw the largest outflow of residents:
10. Connecticut
Connecticut continues to wave goodbye to movers, as a potent cocktail of high taxes and steep housing costs makes staying put a challenge. The state boasts a 6.35% sales tax, with additional levies on certain big-ticket items.
On top of that, a progressive state income tax can hit top earners with a 6.9% rate. With a median home sale price hovering around $442,500 and property taxes ranking as the third highest in the nation, fixed-income households are feeling the squeeze.
9. Michigan
Despite glimmers of economic recovery in some areas, Michigan remains a net-loss state, with more residents opting to leave than settle in. Residents here face a 6% sales tax and a flat income tax rate of 4.25%. While median home prices are relatively affordable at $267,000, population declines in certain metropolitan areas suggest ongoing concerns about the state’s long-term economic stability.
8. Ohio
Ohio experienced one of the most dramatic drops in the U-Haul Growth Index rankings this past year. The Buckeye State has a 5.75% sales tax and a progressive income tax that can be particularly heavy for those earning $100,000 or more.
Though the median home sales price is a relatively palatable $260,000, sluggish job growth is pushing residents elsewhere. Ohio shares the nation’s 13th-highest unemployment rate with New York, at 4.5%, and also ties for the 13th-highest poverty rate, with 9.2% of its population living below the poverty line.
7. Maryland
Given its close proximity to Washington, D.C., Maryland often inherits some of the capital city’s notoriously high costs. The median home sale price here has climbed to $521,146. Adding to the financial strain are the state’s 6% sales tax and a progressive income tax that can reach as high as 6.5%.
6. Pennsylvania
Pennsylvania is another state grappling with a net out-migration, as residents navigate moderate housing costs alongside a relatively high tax burden. The state levies a 6% sales tax (which can climb to 8% in some areas) and a flat income tax rate of 3.07%.
While the median home sales price is around $305,000, Pennsylvania’s property taxes are a significant concern, ranking as the 13th-highest in the nation. The challenge of maintaining an aging housing stock also presents a considerable financial hurdle.
5. Massachusetts
Massachusetts residents contend with a 6.25% sales tax and a graduated state income tax rate that can climb to 9% for the highest earners. The median home sale price, a staggering $638,000, further exacerbates affordability issues, even extending into the state’s suburban and exurban communities.
4. New York
The notoriously high cost of living in New York remains a primary catalyst for residents seeking opportunities elsewhere. While the statewide sales tax is 4%, local sales taxes can push the combined rate up to 8.75% in some areas. Compounding the financial pressure, the top state income tax rate is a formidable 10.9%, and median home prices have reached $400,000.
3. New Jersey
New Jersey continues to hold its position as one of the most expensive states to call home. Residents face sales taxes up to 6.625% and a progressive income tax that can top out at an eye-watering 10.75%.
With a median home sales price nearing $590,000, homeownership is simply out of reach for many. Furthermore, New Jersey boasts the nation’s highest effective owner-occupied property tax rate, at 2.23%, according to the Tax Foundation.
2. Illinois
Illinois is experiencing a continued exodus of movers, driven by significant housing and tax pressures. The state applies a 6.25% sales tax and a flat income tax rate of 4.95%. While home prices are lower than on the coasts, the median cost of $299,000 still presents a struggle for residents who are also contending with high property taxes and limited job mobility.
1. California
For the sixth consecutive year, California has landed at the very bottom of the U-Haul Growth Index, reflecting a sustained outflow of residents that feels almost like a modern-day “Grapes of Wrath” – in reverse. The Golden State levies a statewide sales tax of 7.25%, with local taxes potentially adding another 2.00%.
Its progressive income tax features the highest top rate in the nation, at 13.3%. Median home prices remain incredibly steep, reaching $873,900 in 2025 and projected to hit $905,000 in 2026, pushing affordability further out of reach for countless households.
The Bottom Line
The message from 2025 is loud and clear: Americans are on the hunt for warmer weather and housing they can actually afford. States with high housing costs are consistently losing more residents than they gain, signaling a powerful trend.
If you’re feeling the squeeze from your rent or tax bill, understanding these migration patterns could be the nudge you need to consider a move. But before you start packing, it’s always wise to consult with a financial expert. While a lower-cost home is certainly appealing, a solid financial strategy can put you in a stronger position no matter where you choose to lay your hat.