With the consolidation of Grass Valley (the company) and Miranda Technologies, Belden, the new owner, will be downsizing their work force, thus some folks my be looking for a U-Haul Truck. Some of those laid off may be thinking about going to Texas, where the economy is booming. If they do they will be contributing to the high demand for U-Haul trucks.
The American Enterprise Institute found an interesting and revealing market-based measure of the relative attractiveness (and migration patterns) of the two states is to compare the cost of a one-way U-Haul truck going from California to Texas vs. the cost going in the other direction. To rent a 26-foot truck one-way, here are the current prices being quoted by U-Haul for June 18:
Torrance, CA to Plano, TX: $2,626
Plano, TX to Torrance, CA: $1,264
Los Angeles, CA to Dallas, TX: $2,558
Dallas TX to Los Angeles: $1,232
Bottom Line: The cost of a one-way U-Haul truck leaving California for Texas is more than twice the cost to rent that same truck going from Texas to California, suggesting that there are twice as many trucks and people leaving California for Texas than vice-versa. Based on the huge difference in demand for one-way truck rentals, there is a premium of more than 100% for Californians to rent trucks going to Texas, and large discounts for trucks going in the opposite direction to California. U-Haul’s market-based pricing seems to confirm the California exodus to Texas of jobs, people and businesses like Toyota and Occidental.