According to U-Haul’s 2025 Growth Index, California led the nation in outbound moves for the sixth consecutive year as over 700,000 residents relocated to other states between 2020 and 2026. Driven primarily by high housing costs and a top state income tax rate of 12.3%, departing residents are reshaping migration patterns across the United States by moving to zero-tax states like Texas, Nevada, and Florida, as well as high-growth destinations such as Arizona and Tennessee.
Why Californians Are Relocating
California’s median home price sits at roughly $750,000, which is more than double the national average, while Bay Area median home prices exceed $1.3 million. Meanwhile, state income tax reaches up to 13.3%, prompting households earning $150,000 to seek out destinations where no state income tax allows them to keep an extra $12,000 to $15,000 annually.
Top Destination States and Cities
- Austin, Texas: A primary hub for tech industry relocations, offering a no-state-income-tax environment and a strong job market. However, median home prices have risen to roughly $625,000, and average one-bedroom rent sits near $1,850 per month.
- Dallas-Fort Worth, Texas: Serving as a more sprawling and corporate alternative to Austin, DFW features a broader job market with major employers like American Airlines, AT&T, Toyota, and Goldman Sachs. Median home prices in the metro area hover around $316,000, with average one-bedroom rent between $1,300 and $1,500 monthly.
- Nashville, Tennessee: Drawing steady migration waves due to its cultural landscape and favorable tax structures, though recent in-migration has significantly driven up local home prices.
- Phoenix, Arizona: Offering familiar warm climates and housing costs running 40 to 60 percent below California prices, Phoenix and surrounding areas like Scottsdale remain top choices for departing families.
Financial and Logistical Realities of Moving
While relocating to zero-tax states like Texas, Nevada, and Florida yields clear income tax savings, movers face distinct financial trade-offs. Furthermore, full-service interstate moving costs for a three-bedroom home from California range between $6,500 and $14,500 depending on distance and weight, though booking moves between October and April can reduce costs by 20 to 30 percent.
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