California has recorded the highest net outflow of U-Haul rental equipment for the sixth consecutive year, according to the company's annual migration trends report. The data, based on over 2.5 million one-way U-Haul trips across the U.S. in the past year, indicates that more individuals are moving out of California than into it using their services.
Key Migration Trends from U-Haul Data
- Outflow Dominance: In 2025, 50.6% of one-way U-Haul customers in California were departing the state, while 49.4% were arriving.
- Top Destinations: The primary destinations for individuals relocating from California using U-Haul services were Arizona, Nevada, Oregon, Washington, and Texas.
- National Context: California is among several states experiencing significant net outflows of U-Haul users, including Massachusetts, New York, New Jersey, and Illinois.
- Decrease in Out-migration: Despite the net outflow, California's out-of-state migration in 2025 was lower than in 2024.
U-Haul International President John Taylor noted that life circumstances such as marriage, children, family events, college, and jobs are common drivers for most moves. The company also observed a continuing trend of migration from states with Democratic governors to states with Republican governors, a pattern that became more pronounced after 2020. Texas, Florida, and North Carolina were identified as top growth states for U-Haul customers, with Dallas, Houston, and Austin leading in metro area growth. San Diego and San Francisco were notable exceptions within California, registering a net inflow of U-Haul customers.
Reasons for Relocation
California demographers attribute the primary reasons for departure to the state's cost of living and housing affordability. Hans Johnson, a senior fellow at the Public Policy Institute of California (PPIC), stated that over the last two decades, housing affordability has been the leading factor for net out-migration from the state, surpassing reasons like employment or family.
- Cost of Living: Living in California is 12.6% more expensive than the national average, according to the U.S. Bureau of Economic Analysis.
- Housing Costs: Housing in California is 57.8% more expensive than the national average.
Eric McGhee, another senior fellow at PPIC, suggests that political leanings are increasingly influencing migration patterns. He noted that individuals moving out of California are more likely to identify as Republican, while those moving in are more likely to identify as Democratic. While partisanship may not be the primary driver, it can be a contributing factor alongside traditional elements such as cost of living, family connections, and job opportunities.
California's Population Data
The California Department of Finance reported a marginal population growth of 0.05% in the year ending July 2025, bringing the total population to 39.5 million people. This marks the third consecutive year of population growth for California after two years of decline following the 2020 pandemic. Although international migration has rebounded, the number of California residents moving out increased to 216,000, aligning with levels observed in 2018 and 2019.