UPDATE: Massachusetts faces a troubling reality as it ranks 46th in U-Haul’s 2026 Growth Index Report, indicating significant out-migration trends among residents. While the Bay State has slightly improved from its previous 49th position, it remains among the bottom five states for one-way U-Haul customer exits, a clear signal of growing dissatisfaction.
The report highlights that California continues to lead the pack as the state with the most residents leaving, holding the last position for the sixth consecutive year. Other states in the bottom five include New York, New Jersey, and Illinois, all experiencing similar outflows.
U-Haul’s analysis, based on data from over 24,000 rental locations, shows that Massachusetts had a 51.8% to 48.2% margin of departures over arrivals last year. This trend raises urgent questions about the state’s appeal amid high living costs and stringent regulations.
Critics, including the Massachusetts Fiscal Alliance, argue that the report underscores a persistent issue of high taxes and rising housing costs, which they believe drive residents away. Executive Director Paul Diego Craney claims the data reflects a “broader pattern” of burdensome climate mandates and tax policies. “When people are voting with their feet year after year, it’s not because of the weather,” Craney declared. “It’s because Massachusetts has become too expensive, too rigid, and too hostile to growth.”
Conversely, advocates for the state’s 4% surtax on incomes exceeding $1 million, represented by Raise Up Massachusetts, argue that the tax has helped expand the millionaire population. Spokesman Andrew Farnitano warned that the U-Haul data could be misused by corporate lobbyists to push for tax breaks for the wealthy, asserting that “working families in Massachusetts are clearly struggling with the high cost of living.”
As the debate intensifies, Massachusetts officials, including Governor Maura Healey, defend the state’s economy, touting it as the “best state for living, raising a family, and for working parents.” However, critics maintain that the realities of high taxes and living expenses are driving families out, with Texas, Florida, North Carolina, Tennessee, and South Carolina identified as the top destinations for those relocating.
U-Haul emphasized that while their rankings may not directly correlate with population growth, they serve as a vital gauge of a state’s ability to attract and retain residents. The latest findings reveal that southern states dominate the list of incoming destinations, while northern states are increasingly losing residents.
The implications of these trends are profound. As the state grapples with economic pressures, the ongoing exodus could affect everything from housing markets to workforce availability. U-Haul International President John “J.T.” Taylor noted that life circumstances—such as marriage, jobs, and education—drive most relocations.
With the stakes high and the implications clear, Massachusetts faces a critical juncture. As residents continue to leave, the pressure mounts on lawmakers to address the underlying issues contributing to this out-migration. The next steps for the state will be crucial in determining whether it can reverse these trends and retain its populace.
As this situation develops, all eyes are on state leaders to make impactful changes that may halt the flow of residents seeking more affordable living conditions. The urgency for reform is undeniable.
