For the sixth year running, California has been identified as the American state with the highest number of residents moving away, according to a major annual survey by self-drive removals giant U-Haul.
The Growth Index: A Clear Pattern of Departure
The company's latest Growth Index, which analyses one-way truck and van rentals, places the Golden State firmly at the bottom of the rankings for 2025. This marks a sustained trend of net outbound migration, even though the absolute number of people leaving was slightly lower than in 2024.
California was not alone in seeing more people move out than in. It was joined in the bottom five by four other states typically associated with left-leaning politics: Massachusetts, New York, New Jersey, and Illinois.
Red States Reap the Rewards of Relocation
In stark contrast, Texas claimed the top spot as the highest-growth state for the seventh time in a decade. The survey noted that four of the top five destination states currently have Republican governors, underscoring a continuing pattern of migration from 'blue' to 'red' states.
While Californians are leaving in significant numbers, they are not moving far on average. Popular destinations for former residents include neighbouring Nevada, Oregon, and Washington, as well as Texas and Arizona.
U-Haul's International President, John Taylor, stated that while life events like jobs and family dictate most moves, other factors influence those seeking a change. "In-migration states are often appealing to those customers," he noted, without specifying the factors driving people from California.
Political Firestorm Ignited by Data
The report quickly ignited a fierce political debate. Republican Speaker of the House Mike Johnson seized on the findings, posting on X that it was easy to see why the exodus was happening.
"California has the highest state income tax in America — 13.3% — and now Democrats like Gavin Newsom are blocking President Trump’s Working Families Tax Cuts," Johnson wrote. He accused the state's leadership of over-taxation and poor governance, claiming the working class was being welcomed by red states.
Governor Gavin Newsom fired back, sharing a Los Angeles Times article and criticising Johnson directly. However, in a twist, the same newspaper later published a piece on 8 January detailing the ongoing challenges contributing to the state's population loss.
Underlying Crises: Fires, Crime, and Homelessness
The data follows another year where California grappled with severe and chronic issues. The state commemorated the first anniversary of the catastrophic Pacific Palisades fire on 6 January, a disaster that killed 12 people, destroyed 7,000 properties, displaced nearly 100,000 residents, and caused an estimated $28 billion in damage.
Persistent crime remains a concern, with analyses ranking California as having the eighth-highest crime rate in the United States. Furthermore, the state faces an unprecedented homelessness crisis.
According to the Public Policy Institute of California, over 187,000 people are homeless in the state, with two-thirds of them unsheltered. This accounts for almost half of the entire unsheltered homeless population in the country.
Some cities are attempting radical solutions. Sacramento's administration has proposed a multi-million dollar plan involving 1,000 'tiny homes', 20 new shelters, and 'safe parking lots'. However, these measures have so far only been partially implemented, with costs soaring.
While the U-Haul index provides a powerful snapshot of moving trends, it reflects a complex interplay of economic, environmental, and social pressures reshaping America's demographic landscape.
