Back in August, we did a story on Pennsylvania’s relocation trends, with the top destination states that PA residents are moving to, as well as the top states where residents are coming from when they move to PA. Now, The Queen Zone has compiled a list for 2025 of the top 10 states that residents are departing from.
Top 10 States Residents Are Leaving
- California: California leads the nation in net migration loss, with a total of almost 240,000 residents leaving from mid–2023 to mid–2024. The two main reasons are (1) extremely high cost of living—50% higher than the national average, largely driven by housing costs—and (2) high taxes, with California having the highest state income tax at 13.3%, as well as the highest gas tax in the country. Major companies are also leaving for the same reason, taking jobs with them.
- New Jersey: New Jersey continues to see more people leaving than moving in, with an incredible 67% of all moves being outbound for 2025. Retirees lead the way here, as over 40% of those leaving are 65 or older. Taxes are the main issue—New Jersey has the highest property taxes in the nation, a state income tax rate of 10.75%, and even an inheritance tax.
- Illinois: Illinois has been an outbound state for years, losing over 56,000 residents this past year. Taxes are again the main factor. Illinois has the 7th highest combined state and local tax rate (over 10% of income) and the 2nd highest property tax rate in the country.
- New York: New York consistently ranks in the top 5 outbound states and lost over 120,000 people in the past year. The main culprit is the high cost of housing—median home prices in NYC are 74% higher than the national average. Add to that one of the highest state income tax rates at 10.9%, plus local income taxes for NYC residents.
- Pennsylvania: Pennsylvania remains among the top outbound states, with 57% of moves leaving the state. The biggest issue is the economy. Once known for its strong industrial and manufacturing base, Pennsylvania has lost many large companies and has been slow to adapt. The state’s high corporate tax rate hasn’t helped retain major employers.
- Massachusetts: Despite high wages and excellent education, Massachusetts lost over 27,000 residents this year. The reason is simple—the high cost of living, which is 44% above the national average. Housing costs alone are more than double the U.S. average, and a “millionaire’s tax” pushes the top income rate to 9%.
- Washington: A newcomer to the top outbound list, Washington now averages 54% outbound moves. Once a haven for Californians seeking lower costs, the influx of new residents has driven prices up. The cost of living is now well above average, and recent job losses in professional and business sectors have added pressure.
- Colorado: Another new addition to the list, Colorado’s outbound rate has hit 54%. Once a top inbound destination, the state’s popularity has driven housing and living costs 13% above the national average. High tax rates have also contributed to the exodus.
- Michigan: Michigan is now an outbound state, despite having an average cost of living. The key issue is job instability—major companies have announced layoffs, and the manufacturing sector is facing further cuts.
- Connecticut: Connecticut’s story is familiar: high cost of living and high taxes. The state’s cost of living is 13% above the national average, with high property taxes, an estate and gift tax, and a seven-bracket income tax system. A stagnant job market has made matters worse.
Common Theme: Economics Drive the Exodus
The common thread across these states is clear—economics. Residents are leaving high-cost, high-tax states in favor of more affordable areas with stronger job markets and growing opportunities. People are seeking a better balance—lower taxes, reasonable home prices, and a higher quality of life.
Planning an Interstate Move? Let Us Get You There
If you’re preparing for a long-distance or out-of-state move, we at O’Brien’s Moving & Storage are here to help make it seamless. With decades of experience managing interstate relocations, we specialize in helping families and individuals relocate efficiently across state lines.
- Professional long-distance and cross-country moving services.
- Expert coordination and logistics for multi-state moves
- Comprehensive packing, loading, and secure transport
- Real-time tracking and dependable delivery timelines
- Personalized moving plans tailored to your destination and schedule
As an agent of Allied Van Lines, we proudly serve customers moving from Pennsylvania, New Jersey, and beyond to destinations across the country. Whether you’re heading to the Carolinas, Florida, Texas, or anywhere nationwide, we’ll ensure your interstate move is smooth, organized, and stress-free from start to finish.
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