In recent years, the state of California has seen a substantial amount of residents move out. Between July 2024-July 2025, the state saw a net domestic migration loss of approximately 229,000. While this trend has somewhat stabilized after the pandemic, there are still challenges, including median home prices exceeding $800,000 and climbing tax rates.
In a four-year period between 2020 and 2024, the biggest interstate migration of recent history occurred when over one million Americans moved out of State. The migration was limited by a certain group, with tech workers, retirees, and families seeking more affordable and business-friendly environments.
Texas
Texas is one of the leading states when it comes to domestic migrations, with over 80,000 US citizens moving into the Lone Star State in 2024. Many of these new residents have moved over from California.
Texas is an appealing state for US citizens because of its lack of a state income tax, lower housing costs, and strong job markets in major cities like Austin, Dallas, and Houston. Texas offers opportunities in energy and tech as well as affordable living for families and professionals alike.
North Carolina
North Carolina ranks as a top state for net domestic migration, with more than 80,000 new residents coming in each year. The state is experiencing a tech boom in the Research Triangle. Charlotte’s banking sector also offers economic opportunities at lower costs than coastal states.
With a moderate climate, affordable housing, and diverse landscapes from mountains to coast, the state appeals to families and professionals. There are major companies relocating from higher-cost states, and universities are growing a strong innovation ecosystem.
South Carolina
A 1.5% annual population growth due to migration has been seen in South Carolina. The state is attracting retirees and high-earning professionals because of its tax benefits and coastal lifestyle.
Charleston not only has historic charm but also an affordable beach community, while Greenville boosts manufacturing opportunities. South Carolina is a rapidly growing destination for people seeking the southern lifestyle and lower cost of living.
Florida
Florida has always seen an influx of permanent residents, gaining 60,000 migrants every year, many of whom are from California. There are more than 400,000 new foreign-born residents moving in annually.
The state has favorable tax policies, a desirable climate, and regulations that are perfect for retirees. However, this is coupled with extreme weather risks and insurance costs going up.
Tennessee
Approximately 50,000 net interstate migrants come into Tennessee every year. Nashville has an entertainment industry and Memphis a logistics sector, which appeal to creative professionals and business leaders who are seeking opportunities without a state income tax.
These factors, alongside conservative governance and a reasonable cost of living, draw in people from high-tax states.
Arizona
For those leaving California, Arizona is an appealing choice due to its proximity, lower taxes, and housing costs.
Arizona offers a similar climate to the Golden State while having lower prices. Phoenix and Tucson have urban amenities, while smaller towns appeal to retirees looking for a southwestern lifestyle without a high cost of living.
Nevada
Nevada has some selling points that bring in US residents from other states, including California. Las Vegas is a giant in the entertainment sector, while Reno has a growing tech industry. The state isn’t too far from California and has no income tax.
There are many sectors that appeal to both entrepreneurs and job seekers, including gaming, hospitality, and technology. There are also popular spaces for outdoor activities, such as Lake Tahoe.
Idaho
Idaho continues to attract California migrants with its natural beauty and outdoor recreation, even if it has seen a slight decline from pandemic highs. The state’s conservative governance and lower living costs are an appealing prospect for specific demographics.
Key attractions for professionals are Boise’s growing tech sector, along with small-town values and access to outdoor activities. However, one setback is the rising housing prices, reducing the state’s advantages over California.
Georgia
Atlanta’s diverse business sector is making Atlanta a key destination for professionals, and Georgia’s film industry, while seeing a decline since 2022, is another sector that has a $2.6 billion spend. The state offers lower living costs and incentives for companies looking to move to the state. Hartsfield-Jackson Airport supports the influx of US citizens.
Georgia’s business-friendly environment and cultural attractions make it appealing for those seeking career growth and lifestyle improvements.
Oregon
Oregon has become a popular destination for California migrants seeking a familiar West Coast culture at lower living costs. Recent trends show moderated growth, but Portland’s tech scene and outdoor recreational opportunities continue to attract newcomers.
Certain demographics, including many Californians, admire the state’s natural beauty and progressive politics.
Washington
Seattle’s aerospace and technology sectors attract California tech workers, offering career advancement without state income tax. Big companies like Amazon, Microsoft, and Boeing create employment opportunities in Washington.
The Evergreen State has Pacific Northwest culture while offering business advantages. Eastern Washington offers affordable alternatives while maintaining access to outdoor recreation and technology employment.
Utah
Utah’s Silicon Slopes tech corridor has significantly lower living costs, ultimately attracting California professionals seeking innovation opportunities. Salt Lake City has a growing tech scene, as well as world-class skiing and business-friendly governance.
Strong job growth, access to outdoor recreation, and family-friendly communities appeal to relocating professionals.
Colorado
In the past, Colorado attracted California migrants, but in recent years, it has faced challenges that have slowed migration. Denver’s aerospace industry and outdoor recreation still draw some who seek mountain living with urban amenities and cultural diversity.
Rising costs and policy changes have reduced Colorado’s migration advantage over California. As regulatory environments have become more similar, the state now experiences more balanced migration flows.
Montana
Montana attracts those seeking a rural lifestyle who appreciate the natural beauty in America’s mountain west. The state has a low population density for those who feel claustrophobic in crowded cities.
Both Billings and Missoula provide urban services while having a small-town feeling. There are both Energy sector opportunities and tourism growth that create economic diversification beyond traditional agriculture and ranching.
Wyoming
Wyoming is another state with a rural lifestyle, lower population density, and tax advantages over other states. With a small population, the state ensures sufficient space and a conservative approach to relocating families.
The state also boasts an energy sector with employment opportunities and access to outdoor recreation, providing economic and lifestyle benefits. Wyoming’s fiscal responsibility and business-friendly policies contrast with those of high-tax states.
South Dakota
Like many other appealing states, South Dakota offers no state income tax and business-friendly policies. Families seek economic opportunity and safety, which South Dakota provides. Sioux Falls has financial services, and Rapid City’s tourism employs new residents.
Low crime rates, affordable housing, and minimal regulations appeal to business owners. The state’s fiscal responsibility and economic growth attract those seeking stable, low-tax environments.
New Mexico
In recent years, New Mexico has seen an increase in relocations among US citizens. Albuquerque has its aerospace industry, and Santa Fe has an art scene that attracts business and creative professionals alike.
Entertainment professionals are drawn to the growing film industry, and outdoor recreation attracts retirees and remote workers. Significantly lower living costs provide substantial savings compared to California markets.
North Dakota
North Dakota improved its migration profile through energy sector growth and agricultural technology development. Budget surpluses and job growth attract professionals seeking economic opportunity in America’s heartland.
Fargo’s technology sector growth and energy field opportunities provide diverse career paths. The state’s economic stability and affordable living attract those prioritizing financial advancement over coastal amenities.
Maine
Maine attracts migrants seeking New England charm with reasonable costs compared to other northeastern markets. Portland’s culinary scene and coastal beauty draw those seeking quality of life improvements and four-season recreation.
Remote work opportunities enable professionals to enjoy outdoor recreation and lower crime rates. Seasonal economy and tourism industry provide entrepreneurial opportunities for lifestyle-focused relocations.
Sources:
California Department of Finance, E-2. California County Population Estimates and Components, 2020-06-30
US Census Bureau, Migration Drives Highest Population Growth in Decades, 2024-12-18
Stanford Institute for Economic Policy Research, California’s population drain, 2023-12-31
North Carolina OSBM, North Carolina top destination for domestic migrants, 2026-01-27
Texas Standard, New census data shows Texas continues to add more, 2026-01-28
US Census Bureau, States by net domestic migration, July 2024-2025, 2026-01-27