California Among 5 States Losing Population as Migration Drops by Half, New Census Data Shows
International migration into the United States collapsed by nearly half between mid-2024 and mid-2025, plummeting from 2.7 million people to just 1.3 million, according to newly released Census Bureau estimates. The historic drop created ripple effects across the country, slowing national population growth to just 0.5 percent and pushing five states into outright decline. California, Hawaii, New Mexico, Vermont, and West Virginia all lost residents during the 12 months ending in July 2025, marking a shift in American demographic patterns.
The slowdown represents the weakest population growth the nation has recorded since 2021, when pandemic disruptions held the rate to just 0.2 percent. Christine Hartley, assistant division chief for Estimates and Projections at the Census Bureau, said in a statement that birth and death rates held steady compared to the prior year. The sharp decline in net international migration, she explained, is the primary reason for the slower growth rate.
The nationwide population still increased by 1.8 million people overall, but the contrast with 2024 is stark. Just one year earlier, the United States added 3.2 million residents and grew by a full percentage point, the fastest annual expansion since 2006. While most states continued adding residents despite the slowdown, the five declining states face a complex mix of economic pressures, cost-of-living burdens, and shifting job markets that international migration once helped offset.
Vermont Declined Fastest, While California Lost the Most People
Vermont experienced the steepest rate of decline among all states, dropping 0.29 percent as roughly 1,800 residents departed. Hawaii followed at a negative 0.15 percent, losing slightly more than 2,000 people, according to Census Bureau data. West Virginia declined by 0.07 percent, New Mexico by 0.06 percent, and California brought up the rear at just 0.02 percent. Despite having the smallest percentage decline, California’s massive population meant it shed more than 9,000 residents, the largest raw number loss of any state.
The reasons behind each state’s population loss vary considerably. California and Hawaii share the burden of extremely high costs of living, with housing prices, taxes, and everyday expenses driving residents toward more affordable regions. Meanwhile, states like West Virginia, New Mexico, and Vermont face different challenges, including aging populations, stagnating economies, and limited job prospects. New Mexico’s population dropped by slightly over 1,000 people, while West Virginia and Vermont each lost between 1,000 and 2,000 residents.
Michael Ryan, founder of MichaelRyanMoney.com, told Newsweek the type of residents leaving California creates particular concern. When a 35-year-old software engineer relocates from California to Texas, he explained, the state loses someone with potentially 30 years of peak earning years ahead. That means three decades of lost income taxes, property taxes, and sales tax revenue from wealth building. What remains behind, Ryan noted, are retirees and people who cannot afford to leave, creating what he calls a fiscal scissors effect.
South Carolina and Texas Lead Growth as Midwest Stays Strong
While five states declined, others surged ahead. South Carolina posted the fastest growth rate at 1.46 percent, adding nearly 80,000 residents to reach a total population exceeding 5.57 million. Idaho followed closely at 1.44 percent, with North Carolina at 1.32 percent, Texas at 1.25 percent, and Utah rounding out the top five at 1.03 percent. The Midwest stood out as the only region where every single state recorded population growth between 2024 and 2025.
Texas claimed the crown for the largest raw population increase, gaining more than 391,000 residents to bring its total to 31.7 million people. The Lone Star State received over 550,000 new residents from other states in 2024 alone, maintaining its position as the nation’s second most populous state behind California. Since 2020, Texas has added nearly 2.5 million people, the largest five-year gain of any state. Florida trailed close behind with an estimated 1.87 million residents added during the same period.
The flow of residents from California to Texas illustrates the broader migration pattern. Roughly 77,000 people relocated from California to Texas between 2024 and 2025, representing the largest state-to-state population transfer in the country, according to Census Bureau migration data. California has lost more than 170,000 residents since 2020, the largest five-year decline of any state. The difference came down to immigration numbers, which dropped from 361,000 net immigrants in 2024 to just 109,000 in 2025 for California.
States Face Pressure to Address Affordability and Job Growth
Drew Powers, founder of Illinois-based Powers Financial Group, told Newsweek that negative net migration creates a ripple effect for affected states. A smaller tax base puts pressure on local public services, including education, utilities, and infrastructure, which can drive even more residents to leave. Businesses struggle to find workers and may relocate, with residents following the jobs elsewhere. Home prices fall, local economies shrink, and community bonds weaken under the strain of sustained population loss.
The five declining states share tightened immigration policies as a common thread, Powers told Newsweek. California has dealt with domestic out-migration for decades, but historically offset losses through international migration. California and Hawaii both carry high cost-of-living burdens, while Hawaii adds geographic isolation to the equation. New Mexico, West Virginia, and Vermont show aging populations and historically low migration rates, making them particularly vulnerable when international arrivals slow across the entire nation.
To reverse population declines, these states will need to tackle fundamental challenges around affordability and economic opportunity. Powers told Newsweek the states must address affordability issues, encourage growth in higher-paying industries, and expand services attractive to younger families, or they risk entering a downward economic spiral. Only Montana and West Virginia avoided seeing their population growth rates slow or their decline accelerate between the two measurement periods, suggesting most states face demographic headwinds regardless of their current trajectory.