Where the shine of the Empire State and the Garden State wasn’t just fading but peeling off in chunks, for many years these two powerhouses have been a magnet to dreamers chasing careers, culture, and city lights. Reality hit hard in 2025-harder than a January wind off the Hudson-more people packed up and headed out than moved in. The latest National Movers Study from United Van Lines confirms what many suspected: New York and New Jersey are topping the nation in outbound migration. But the reasons aren’t solely about weather or wanderlust; they’re rooted in taxes, housing costs, lifestyle shifts, and a post-pandemic craving for breathing room.
It is not a trickle-this is a trend rewriting the map. From retirees eyeing sunnier, cheaper locales to young professionals in hot pursuit of opportunity in emerging hubs, this wave of migration rewrites America’s living patterns. Here’s a closer look at what’s driving this exodus-and where everybody’s landing:
1. New Jersey’s Eight-Year Reign as the Most Abandoned State
New Jersey topped the outbound list for the eighth year in a row, with 62% of moves handled by United Van Lines leaving the state. For younger professionals, it may be more of a “launch state” to begin careers, but older residents are fleeing en masse, many post-retirement. A recent Monmouth University Poll showed that a combined 48% of residents want to leave at some point, with property taxes at 39% and cost of living at 24% dominating the concerns of those wanting to leave. The much-heralded Stay NJ program, which will cut property taxes for seniors, isn’t enough to sway more than half of likely leavers.
2. Shrinking Allure of New York
New York State is not far behind, with 58% of moves being outbound. The ambitious job seekers still arrive, but the state bleeds residents driven by retirement, affordability, and lifestyle changes. That gets worse with the highest income tax rate in the nation at 13.6%, besides Manhattan rents reaching new highs late in 2025. Aggressive taxation and sky-high housing seem to be forcing many to reconsider their zip code.
3. Taxes and Lifetime Earnings Drain
New York and New Jersey residents rank in the top five for paying the most in combined federal and state taxes over lifetime earnings. This effect is overwhelming on high earners. The financial squeeze, combined with inflationary pressures, further quickens the search for states with friendlier tax codes and lower living expenses.
4. Retirement Migration Southward
Its biggest driver is retirement. Nationally, retirement accounted for 14% of interstate moves in 2025. Places like South Carolina, Alabama, and Florida offer lower costs, warmer climates, and a very slow pace of life. “You can almost get a mansion with what $700,000 will buy in Maryland,” said Realty agent Melissa Sprouse Browne in South Carolina, hinting at the gap in affordability.
5. Oregon’s Rise as a Migration Magnet
For the first time, Oregon took the top inbound spot with 65% of moves coming into the state. The state’s expanding tech industry, taken in concert with the healthcare sector, plus more affordable housing options like Springfield, is attracting job seekers: 36 percent of moves to Oregon were for employment. At 85%, Eugene-Springfield was a very strong metro destination.
6. West Virginia’s Family and Job Appeal
With 62%, West Virginia was ranked second for inbound migration. The Mountain State is a favorite of those people relocating for jobs, with 33%, while 22% would like to be closer to family. Its affordability and lower-density living are consistent with the wider post-pandemic trend toward smaller cities and towns.
7. Preference for lower-density living post-pandemic
COVID-era preferences for “lower-density living” continue to influence moves, notes economist Michael Stoll. By allowing-frequently encouraging-workers to work from home, the pandemic dispensed with a need for proximity to urban job centers. That has fed migration to smaller metros and rural areas, where housing is relatively more affordable and lifestyles less frenetic.
8. Rural Revival-but Close to Cities
Data shows the biggest gains are concentrated for rural areas proximate to urban centers. In Spain, villages with less than 2,000 residents within a 40-kilometer radius of cities captured the most significant net migration gains. In the United States, rural counties under 30,000 residents flipped from net losses pre-pandemic to gains during 2020–2021, reflecting a desire for space without total isolation.
9. Balanced Migration in former hotspots
Formerly dominant inbound magnets like Texas and Florida today are balanced. Increasing housing costs temper their appeal, and affordability, it seems, has now become a decisive factor even in traditionally popular destinations. The 2025 migration story isn’t about leaving as much as it is about recalibrating.
High-cost, high-tax states such as New York and New Jersey continue to shed residents looking for financial relief, space, and a lifestyle reset. Meanwhile, new winners including Oregon and West Virginia cash in on economic opportunity and livability. For policymakers, the message cannot be clearer: dismiss affordability and quality-of-life concerns, and watch the moving trucks roll out.
