2025 Migration Data Reveals Shift Back to Texas as Top Destination for Movers
Phoenix, Tuesday, 6 January 2026.
Texas reclaims the top spot for inbound moves in 2025, while California ranks last for the sixth consecutive year, underscoring a persistent migration toward business-friendly environments.
Texas Returns to the Helm of Migration Growth
In a decisive shift in domestic migration patterns, Texas has reclaimed its status as the primary destination for one-way movers in the United States for 2025. According to the U-Haul Growth Index released on January 5, 2026, the Lone Star State secured the number one ranking for the seventh time in the past decade, unseating Florida, which had briefly held the title. This resurgence is driven by a measurable uptick in inbound traffic; arrivals accounted for 50.7% of all one-way U-Haul traffic in Texas, with the volume of customers moving into the state rising by 3% year-over-year [1]. While Florida slipped to the second position, the data highlights a consolidated preference for the Southeast, as the top five growth states—Texas, Florida, North Carolina, Tennessee, and South Carolina—remained unchanged in composition from the previous two years, merely shuffling in order [1].
California’s Continued Exodus
Conversely, the data illustrates a persistent outbound trend from the West Coast’s largest economy. For the sixth consecutive year, California ranked last on the Growth Index, registering the greatest net loss of one-way trucks and trailers of any state in 2025 [1]. Joining California in the bottom five were Massachusetts, New York, New Jersey, and Illinois, indicating a sustained regional disparity where traditional population centers in the Northeast and Midwest continue to bleed residents to high-growth areas in the South and West [1][2]. This ongoing deficit in California is further contextualized by the state’s tax environment; California maintains a top personal income tax rate of 13.3%, the highest among the states analyzed [2].
Fiscal Policy as a Migration Driver
The correlation between fiscal policy and migration patterns is becoming increasingly stark. Data analyzed by Americans for Tax Reform suggests that Americans are voting with their feet, favoring states with lower tax burdens. The average top state personal income tax rate for the ten best-ranked states on the index is just 3.5%, compared to an average of 7.2% for the ten worst-ranked states [2]. This represents a significant tax gap of 3.7 percentage points between the most and least desired destinations. Furthermore, the structural business environment appears to play a pivotal role; nine of the top ten growth states have enacted Right-to-Work laws, whereas none of the bottom ten states possess such legislation, operating instead as forced unionism states [2].
Volatility in Regional Rankings
While the top and bottom of the list remain relatively static, 2025 saw significant volatility elsewhere in the rankings. Oregon emerged as a surprising outlier, climbing 23 positions to rank 11th, marking a significant reversal from previous years [1][5]. Similarly, Nevada jumped 15 spots to rank 20th, with Governor Joe Lombardo attributing the rise to a focus on job creation and housing stability [3]. Conversely, Ohio experienced a precipitous drop, falling 29 positions to rank 43rd, transitioning from a net-gain state in 2024 to a net-loss state in 2025 [1][6]. Other notable declines were observed in Virginia and Indiana, which saw double-digit drops in their respective rankings [1][5].
Methodology and Economic Indicators
It is important to note that the U-Haul Growth Index is an effective gauge of proprietary migration data rather than a direct census of population growth. The index calculates the net gain of one-way trucks, trailers, and U-Box containers entering a state versus leaving it during a calendar year, based on over 2.5 million annual transactions [1][5]. While U-Haul International President John Taylor notes that life circumstances such as marriage, jobs, and family changes dictate most moves, the aggregate data provides a clear window into broader economic sentiments, revealing which regions are successfully attracting and retaining residents in the current economic climate [1][6].