California exodus spikes again as more Americans flee — dead last U-Haul ranking for 6th straight year. Here’s Gavin Newsom’s biggest problem

For the sixth year in a row, California recorded the highest number of residents moving to other states, according to the 2025 U-Haul Growth Index.

Even with that continued outflow, the state’s overall population is still increasing. Data from the California Department of Finance shows that in the 12 months ending July 1, 2025, California’s population grew by about 19,200 people. This marks the third straight year the state has posted population gains.

Governor Gavin Newsom has pushed back on the idea that California is experiencing a long-term population collapse. On his official website, he noted that the state has only experienced a brief decline in population during its 174-year history, which occurred during the height of the COVID pandemic.

The situation highlights a complicated demographic pattern: many residents are leaving the state while the population continues to grow overall. California’s economic opportunities continue to draw newcomers, even as certain challenges drive longtime residents away.

A long-running migration trend

The trend of more people leaving California than moving there from other parts of the United States is not new. According to the Department of Finance, the state has experienced negative net domestic migration for more than two decades. This means that each year, more people relocate to other states than move into California from elsewhere in the country.

However, international migration has largely balanced out those losses. In the year ending July 1, 2025, California gained about 126,000 people through net international migration.

For decades, the state has attracted people from around the world, including students, researchers, entrepreneurs, and skilled workers. This steady influx of international residents has played a major role in supporting California’s economic growth.

The Public Policy Institute of California reports that roughly 22 percent of all foreign-born residents in the United States live in California. In addition, immigrants make up about one-third of the state’s prime working-age population.

California’s reputation as a global hub for talent continues to support its economy. But rapid growth and demand have also contributed to one of the state’s most persistent problems: the high cost of living.

Cost pressures driving people away

By mid-2025, California ranked as the third most expensive state in the country, according to the Missouri Economic Research and Information Center. Housing, groceries, and other everyday costs remain significantly higher than in many other parts of the United States.

Housing prices in particular have risen much faster than wages. Between January 2020 and September 2025, monthly payments for mid-priced homes increased by 74 percent. Payments for lower-priced homes rose even more, climbing 78 percent.

During that same period, average hourly wages increased only about 25 percent.

Renters have also been affected. The Legislative Analyst’s Office reported that rents rose 42 percent during those years, again far outpacing income growth.

Because of these rising costs, housing affordability is widely seen as the main factor behind residents leaving the state. Research from the Public Policy Institute of California found that about 34 percent of Californians have thought about moving to another state due to housing costs.

Combined with higher prices for food, energy, and other essentials, the affordability issue has become one of the state’s biggest long-term challenges.

Newsom acknowledged the seriousness of the problem during a December 2025 interview with Ezra Klein, saying that the state’s affordability crisis has deep roots and has been building for decades.

State leaders have proposed several approaches to address the issue, including removing regulatory barriers to construction, encouraging local governments to approve more housing, lowering building costs, and limiting the influence of large institutional investors in the housing market.

Steps residents can consider

While some Californians may choose to relocate, leaving the state is not a practical option for many families. Those who plan to remain in California can look into several programs designed to help offset high living costs.

Many residents qualify for state tax credits and assistance programs but do not always take advantage of them.

For example, CalWORKS provides childcare subsidies through a voucher system. The California Earned Income Tax Credit and the Young Child Tax Credit can return between $1,189 and $3,756 to eligible families. The California Housing Finance Agency also offers financing programs aimed at helping residents buy homes and supporting the construction of more affordable housing.

Although these programs do not fully solve California’s cost-of-living challenges, they can help some households reduce financial pressure and make living in the state more manageable.