State ranks last in company’s Growth Index as high costs drive residents to seek opportunities elsewhere
California’s population drain shows no signs of slowing, with U-Haul reporting that for the fifth consecutive year, more people rented trucks to leave the Golden State than to move in, according to the moving company’s latest data.
The rental giant’s Growth Index places California dead last among all 50 states, reflecting a persistent trend that has accelerated in recent years. While the margin remains relatively narrow—with approximately 51 percent of one-way U-Haul rentals representing outbound moves compared to 49 percent inbound—the consistent direction of the trend paints a clear picture of California’s demographic challenges.
The primary catalysts behind this exodus mirror broader national conversations about affordability and quality of life. U-Haul data identifies California’s notoriously high cost of living as the leading factor, with housing prices and state tax burdens serving as additional motivators for residents seeking greener pastures.
This migration pattern represents more than statistical curiosity—it reflects real economic pressures facing middle-class families and young professionals who find themselves priced out of the state that once symbolized opportunity and upward mobility.
The beneficiaries of California’s population loss are becoming increasingly predictable. Cities like Portland, Las Vegas, Phoenix, and Austin continue to attract former California residents, while states including Nevada, Arizona, and Florida have emerged as primary destinations.
These locations share common attributes that appeal to California emigrants: significantly lower housing costs, reduced tax burdens, and expanding job markets. Nevada, in particular, has capitalized on its proximity to California while offering no state income tax—a compelling proposition for businesses and individuals alike.
This demographic shift carries implications beyond simple population counts. When residents leave, they take their spending power, entrepreneurial energy, and tax contributions with them. For destination states, this influx can stimulate local economies and real estate markets. For California, the challenge becomes maintaining its economic dynamism while addressing the structural issues driving residents away.
The U-Haul data, while representing just one company’s rental patterns, serves as a bellwether for broader migration trends. As remote work continues to reshape where Americans choose to live, states like California face mounting pressure to address affordability concerns or risk watching their human capital continue flowing elsewhere.
The consistency of this five-year trend suggests that California’s out-migration isn’t merely a pandemic-era anomaly but possibly a shift in how Americans weigh the costs and benefits of living in high-tax, high-cost states.
