Texas Reclaims Top Spot in U-Haul Index as Americans Move South

PHOENIX, AZ – January 05, 2026 – The familiar sight of a U-Haul truck on the highway continues to tell a story of a nation in motion, and according to new data, that motion is overwhelmingly directed southward. The 2025 U-Haul Growth Index, released today, shows Texas reclaiming its throne as the number one growth state for do-it-yourself movers, marking the seventh time in the last decade it has held the top spot. The findings underscore a powerful and persistent demographic shift reshaping America's economic and political landscape.

Based on an analysis of more than 2.5 million one-way customer transactions, the index paints a clear picture of migration patterns. While Texas climbed back to the top from its No. 2 position in 2024, Florida surged two spots to become the second-most popular destination. The top of the list is a familiar roll call of Sunbelt states, with North Carolina, Tennessee, and South Carolina rounding out the top five. South Carolina, the previous year's leader, slipped to fifth place but remained a prime destination.

On the other end of the spectrum, California anchored the bottom of the list at No. 50 for the sixth consecutive year, experiencing the largest net loss of one-way movers. It was joined in the bottom five by Illinois (49), New Jersey (48), New York (47), and Massachusetts (46), reinforcing a trend of population outflow from high-cost coastal and northern states. While U-Haul notes its index is not a direct measure of population growth, it serves as a potent indicator of how well states are attracting and retaining residents.

The Economics of Exodus and Arrival

Behind the rankings lies a complex interplay of economic forces, policy decisions, and lifestyle choices. The magnetic pull of states like Texas and Florida is strongly correlated with robust job markets and favorable tax policies. Official data from the Bureau of Labor Statistics (BLS) validates this trend, showing Texas led the nation in job creation over the last year, adding 168,000 jobs. Florida also posted strong numbers, with its private sector job growth consistently outpacing the national average.

Both states famously levy no state income tax, a significant draw for individuals and businesses alike. This pro-business stance is further bolstered by active economic development initiatives. Texas, for instance, has been recognized for 13 straight years for leading the nation in job-creating corporate relocation and expansion projects. Similarly, North Carolina (No. 3) has aggressively cut its corporate and personal income tax rates, making it a highly competitive destination for capital investment.

"We continue to find that life circumstances — marriage, children, a death in the family, college, jobs and other events — dictate the need for most moves,” said John “J.T.” Taylor, U-Haul International president, in the company's press release. “But other factors can be important to people who are looking to change their surroundings. In-migration states are often appealing to those customers.”

However, the allure of the Sunbelt is not without its growing pains. The influx of new residents has placed immense pressure on housing markets. In Florida, median home prices have soared, with housing costs in early 2025 consuming nearly 40% of a typical buyer's income. While Texas offers more land and comparatively more affordable options, its major metro areas are also grappling with rising costs, and homeowners face some of the highest property taxes in the nation. This emerging affordability crisis in destination states complicates the narrative of a simple, low-cost exodus.

Conversely, the primary drivers of out-migration from states like California, New York, and Illinois are well-documented: high taxes, burdensome regulations, and a severe lack of affordable housing. According to the latest U.S. Census Bureau data on domestic migration, California lost nearly a quarter-million residents to other states, with New York seeing a net loss of over 120,000. These figures, which align closely with U-Haul's findings, highlight the 'push' factors that are making it untenable for many residents to stay.

A Redward Shift and Surprising Volatility

The migration patterns also reveal a distinct political dimension. The press release notes a clear "blue-to-red state migration" trend, a phenomenon that has gained traction since 2020. Seven of the top 10 growth states in the U-Haul index have Republican governors, and nine voted for the Republican candidate in the last presidential election. Conversely, nine of the bottom 10 states for growth are led by Democratic governors, and seven went for the Democratic candidate. While movers may not be explicitly choosing states based on politics, they are flocking to areas whose economic and social policies are often reflective of a more conservative political climate.

Beyond the headline-grabbing shifts at the top and bottom of the list, the 2025 index also reveals significant volatility in the middle ranks, suggesting that state fortunes can change rapidly. The most dramatic gainer was Oregon, which rocketed 23 spots from 34th (a net-loss state) in 2024 to 11th (a net-gain state) in 2025. This remarkable turnaround suggests a potential shift in the state's appeal or economic conditions.

Other notable climbers included Mississippi (+18 spots), Colorado (+17), and Nevada (+15), indicating a broadening of desirable destinations beyond the traditional southern powerhouses. These shifts point to more nuanced, localized factors influencing where Americans choose to put down new roots.

On the other side of the coin, Ohio experienced the most precipitous drop, plummeting 29 positions from a healthy 14th place in 2024 to 43rd in 2025, firmly in net-loss territory. Virginia (-19 spots) and Indiana (-17) also saw significant declines. Such dramatic falls can signal underlying economic headwinds or policy changes that have made a state less attractive over a single year. These movements highlight the dynamic nature of internal migration and serve as a crucial barometer for state-level competitiveness in the ongoing national reshuffling.