Nevada lost its spot as a top U-Haul destination in 2024
In a surprising shift, Nevada saw a notable decline in new residents in 2024. According to U-Haul’s latest Growth Index, Nevada plummeted from 11th to 35th in the rankings of states attracting one-way movers. For the first time in years, Nevada recorded a net loss in U-Haul traffic, with arrivals dipping below departures. This marks a break from its status as a net-gain state in four of the previous five years. So, what’s driving this change, and what does it tell us about Nevada’s place in America’s migration landscape?
A Shift in the Silver State
U-Haul’s 2024 Growth Index, which tracks over 2.5 million one-way truck rentals, paints a clear picture: Nevada is losing some of its allure. In 2024, U-Haul customers moving to Nevada accounted for 49.7% of the state’s one-way traffic, while departures made up 50.3%. This slim margin signals a reversal, as arrivals dropped by more than 3% compared to 2023, while departures held steady. While the numbers may seem modest, they reflect a significant departure from Nevada’s recent history as a growth hotspot.
Nevada has long drawn newcomers with its low taxes, affordable housing (relative to neighboring California), and vibrant economy fueled by tourism and tech. Cities like Las Vegas and Reno have been particularly attractive for young professionals and retirees alike. The reason may lie in a mix of economic pressures and competition from other states.
Why People Move
Migration patterns often reflect where people see opportunity. States like South Carolina, which claimed the top spot in U-Haul’s 2024 rankings, along with perennial favorites Texas, North Carolina, and Florida, share a common thread: business-friendly policies, lower taxes, and fewer regulations. These states continue to draw families and businesses seeking affordability and economic freedom.
Nevada, historically a leader in this regard, boasts no state income tax and a relatively low cost of living compared to coastal states. However, rising housing costs in cities like Las Vegas, where median home prices have climbed to around $450,000 (a 20% increase since 2020, according to Zillow), may be dampening its appeal. Combine this with inflationary pressures and a competitive job market, and some potential movers may be looking elsewhere.
Fact: Nevada’s population grew by 15% from 2010 to 2020, making it one of the fastest-growing states in the U.S. during that decade, according to the U.S. Census Bureau. This growth was driven largely by domestic migration, with many fleeing high-tax states like California. The 2024 U-Haul data suggests this trend may be slowing, raising questions about Nevada’s long-term growth trajectory.
Several factors could explain Nevada’s dip in the rankings:
Housing affordability: While Nevada remains cheaper than California, home prices and rents have surged in recent years. In Las Vegas, the median rent for a one-bedroom apartment now hovers around $1,400, up 10% from 2022, per Apartment List. This may deter cost-conscious movers.
Economic competition: States like South Carolina and Texas are doubling down on pro-business policies. For example, South Carolina offers tax incentives for new businesses and has invested heavily in infrastructure, making it a rising star for relocators. Nevada, while still business-friendly, faces stiff competition.
Quality of life concerns: Southern Nevada’s harsh climate, characterized by blistering summers and scarce water resources, is increasingly deterring potential residents. Urban issues, such as crime and traffic congestion in Las Vegas, may also be driving people to look for alternatives elsewhere. Additionally, Nevada’s public school system consistently ranks among the lowest in the nation, posing concerns for families. In northern Nevada, the scarcity of parks and recreational fields remains a significant issue. Finally, the state’s shortage of healthcare providers is a critical factor for older residents, further impacting its appeal.
Stat: According to a 2023 study by the University of Nevada, Las Vegas, nearly 60% of new residents cited “economic opportunity” as their primary reason for moving to the state. However, 25% of those who left in 2023 mentioned rising living costs as a key factor.
Nevada’s slip in the U-Haul rankings offers a chance to reflect on what makes a state attractive. The success of states like South Carolina and Texas points to the power of low taxes, streamlined regulations, and investment in infrastructure. Nevada could double down on these strengths while addressing emerging challenges:
Housing solutions: Expanding affordable housing initiatives or incentivizing new construction could help keep Nevada competitive.
Diversifying the economy: While tourism and gaming remain economic pillars, further investment in tech and renewable energy could attract a broader range of workers.
Quality of life investments: Improving public services, like education and transportation, could make Nevada more appealing to families.
Spotlight: The U-Haul Growth Index, compiled annually, is a unique lens on migration trends, as it tracks real-time decisions by everyday Americans. Unlike census data, which lags by years, U-Haul’s data offers a near-instant snapshot of where people are going—and why.
Nevada remains a vibrant destination, but the 2024 U-Haul Growth Index signals a moment for reflection. As competing states attract the same pool of movers, Nevada’s leaders have a chance to strengthen policies that preserve the state’s allure. Notably, California, Nevada’s primary source of new residents, ranked last at 50th in the 2024 Growth Index, continuing its five-year streak as the state with the largest net loss of one-way U-Haul customers, with 51% departures and 49% arrivals. This ongoing out-migration from California, driven by high costs and other factors, ensures Nevada remains an attractive option due to its proximity and affordability.
For now, South Carolina, Texas, and North Carolina are leading the pack.
Sources:
U-Haul 2024 Growth Index: U-Haul Press Release
Zillow Home Price Data: Zillow Research
Apartment List Rent Reports: Apartment List
U.S. Census Bureau Population Data: Census.gov
University of Nevada, Las Vegas Migration Study: UNLV Research
