10 U.S. States Residents Are Leaving in 2025
Ever feel like half your neighborhood is packing up and moving? You’re not just imagining it.
A whole lot of Americans are on the move, and there’s a clear pattern to where they’re going—and where they’re leaving. The data shows a massive reshuffling is underway.
But here’s the real story: The great American reshuffle is less about chasing a dream and more about chasing affordability. People are ditching high-cost states for a better quality of life and some much-needed financial breathing room.
This isn’t just a hunch. The trend is confirmed by hard data from major moving companies like United Van Lines and U-Haul, as well as by census analysts and tax experts.
California is losing its golden sheen
For many, the California dream has become too expensive to afford. The numbers are staggering. U.S. Census Bureau data shows California had the biggest net domestic migration loss in the nation, with a jaw-dropping 239,575 residents leaving for other states between mid-2023 and mid-2024.
The main reason is the crushing cost of living. It’s 50% higher than the national average, and in cities like San Francisco, it’s nearly 90% higher. Housing is the real budget-killer, with the median home price approaching an eye-watering $900,000. That’s more than double the U.S. median.
Taxes are another huge push factor. California has the highest state income tax rate in the country at 13.3%, not to mention the highest gas tax. It’s not just people leaving; major companies have also packed up and relocated, taking jobs and opportunities with them.
New Jersey is seeing a great retirement migration
For the seventh year in a row, more people are moving out of New Jersey than any other state, according to United Van Lines. The data is crystal clear. A whopping 67% of moves involving New Jersey were outbound, a trend that has persisted for years.
A huge driver is retirement. The state is experiencing a “gray exodus,” with nearly a quarter of people leaving for their golden years. The data shows over 40% of movers leaving New Jersey are 65 or older, many cashing out their home equity and heading to warmer, lower-tax states like Florida.
And then there are the taxes. New Jersey has the highest property taxes in the nation, with the average homeowner paying over $10,000 a year. Add a top income tax rate of 10.75% and an inheritance tax, and it becomes a tough place to build or pass on wealth.
Illinois is losing people and businesses
Illinois has been a fixture on outbound lists for years, and the trend isn’t slowing down. The U.S. Census Bureau confirms a net loss of over 56,000 residents to other states.
A tough tax environment is a big part of the story. A WalletHub 2025 analysis found that Illinois ranks seventh highest in the nation for combined state and local tax burden, with residents paying over 10% of their income in taxes. The state is especially notorious for its property taxes, which are the second-highest in the country.
Much of the outflow comes from the Chicago area, where the cost of living is about 12-15% higher than the national average. While crime rates in the city have dropped significantly in recent years, lingering concerns about safety still factor into some residents’ decisions.
New York is pricing out its own residents
The Empire State is seeing a steady stream of residents heading for the exits, driven by one primary factor: an impossible cost of living. New York consistently ranks in the top five for outbound moves. It saw a net loss of over 120,000 people to other states last year, second only to California.
Housing is the number one reason. The cost of living in New York City is 74% higher than the national average. The median home price in NYC is around $800,000, but in Manhattan, it skyrockets to over $1.15 million.
On top of that, New York has one of the highest tax burdens in the country. The top state income tax rate is 10.9%, and if you live in NYC, you pay additional local income taxes.
Pennsylvania’s job market is slow to pivot
Pennsylvania is a staple on outbound migration lists, struggling with a sluggish economy and the loss of historical job opportunities. Multiple moving companies place Pennsylvania in their top five outbound states, with around 57% of moves heading out of state, according to North American Moving Services. U-Haul also ranks it in its bottom 10 for growth.
The primary driver here is economic. Pennsylvania has a rich industrial and manufacturing history, but as large companies have relocated or offshored, those job opportunities have dwindled. The state’s economy has been slow to shift, leading to fewer new jobs compared to the booming Sun Belt states that are attracting its former residents. In fact, Pennsylvania’s job openings rate in mid-2025 was below the national average.
While the cost of living is lower than the national average, it’s not low enough to compete with the top inbound states, especially when career prospects are weaker. The state’s high corporate income tax and complex local taxes also contribute to a less-than-friendly business environment.
Massachusetts is a victim of its own success
High wages and a great education system can’t overcome the astronomical cost of living for many Massachusetts residents. The state is a consistent feature on outbound lists, ranking in the top five for United Van Lines and losing a net of over 27,000 residents to other states. U-Haul ranks it 49th in the country for growth, second to last.
The reason is simple: it’s incredibly expensive. RentCafe reports that the cost of living is 44% higher than the national average. Housing is the biggest hurdle, costing a staggering 106% more than the U.S. average. The median single-family home price hit $600,000 in early 2025. In Boston, one of the priciest rental markets in the country, the average apartment rent is nearly $3,200, according to Zillow.
Taxes don’t help. The state has a complex tax system, including a “millionaire’s tax” that pushes the top income tax rate to 9% for high earners, making for a burdensome tax environment.
Washington’s affordability is fading
Once a haven for those fleeing California’s high prices, Washington is now seeing its own residents look elsewhere for relief. Multiple van lines now place Washington in their top five outbound states, with 52-56% of moves heading out.
The state’s popularity has come at a cost. The overall cost of living is significantly higher than the national average, especially around Seattle. The statewide median home price has climbed to $675,600, while in Seattle’s King County, it has soared past $1 million.
At the same time, the job market has cooled off. The state’s economy lost thousands of jobs in late summer 2025. Key sectors like professional and business services have seen significant job losses over the past year.
Colorado’s boom is becoming a burden
Colorado was a top destination for years, but now the high cost of that popularity is pushing people out. In a dramatic reversal, Allied Van Lines now lists Colorado as a top-five outbound state, with 54% of moves being outbound. Just a few years ago, it was one of the hottest inbound states.
What happened? The massive influx of new residents drove up the cost of living, which is now 13% higher than the national average.
Housing in the Denver metro area is a key example, with the median price for a single-family home hitting $630,000. High tax rates were also cited as a reason for leaving. The job market is also showing signs of weakness, with an unemployment rate that’s ticked above the national average.
Michigan is struggling with job losses and a slow recovery
Despite an affordable cost of living, Michigan is seeing more U-Hauls leaving than arriving, largely due to a shaky job market. U-Haul ranks Michigan 43rd in its growth index, placing it firmly in the bottom 10 for net migration.
The state’s job market has been described by experts as “stagnant” and “weak.” Major companies in key sectors have announced significant layoffs. While some industries like healthcare are projected to grow, the critical manufacturing sector is expected to see the largest job losses in the Detroit Metro region.
Michigan’s cost of living is the same as the national average, with a median home price of around $270,000. However, this affordability isn’t enough to keep residents who are worried about their long-term career prospects.
Connecticut’s high costs overshadow its quality of life
Like its neighbors, New York and New Jersey, Connecticut is a high-cost, high-tax state that is seeing residents vote with their feet. U-Haul places Connecticut 41st on its growth index, marking it as another bottom-10 state for net migration.
The reasons are familiar. Living in Connecticut is 13% more expensive than the national average. Housing is a major driver, with the median home price now over $460,000.
The state also has one of the least competitive tax climates in the country. It features a complex, seven-bracket income tax system, high property taxes, and an estate and gift tax, making it unattractive for both workers and retirees. The state’s job growth has been minimal, and the unemployment rate has been ticking up.
Key takeaway
The 2025 migration trends paint a clear picture. Americans are making strategic financial decisions, moving away from states where the cost of living and tax burdens have become unsustainable. The exodus from places like California, New Jersey, and New York is a deliberate search for affordable housing, lower taxes, and a better overall quality of life.
The destination is clear: movers are flocking to the Southeast and Sun Belt, where a combination of lower costs and growing job markets offers a more attractive value proposition. The great American reshuffle is a powerful reminder that when paychecks don’t stretch far enough, people will pack their bags and find a place where they do.
16 Best Jobs for Pregnant Women
16 Best Jobs for Pregnant Women
Pregnancy is a transformative and joyous period in a woman’s life, but it comes with unique challenges and demands. One of the most crucial aspects during this time is ensuring a healthy work-life balance.
Finding the right job during pregnancy is not just about earning an income; it’s about maintaining your health, well-being, and peace of mind.
Science Tells Us What To Expect As We Age: Strategies for Thriving in Later Life
Science Tells Us What To Expect As We Age: Strategies for Thriving in Later Life
How does aging affect our bodies and minds, and how can we adapt to those differences? These are questions that pertain to us all. Aging gradually alters people over decades, a long period shaped by individuals’ economic and social circumstances, their behaviors, their neighborhoods, and other factors. Also, while people experience common physiological issues in later life, they don’t follow a well-charted, developmentally predetermined path. Let’s take a look at what science has told us to expect.
