Source: Fortune
Summary
California’s population declined 0.5% between 2020 and 2025, according to the U.S. Census Bureau. Despite this, Gen Z continues to move to the state, ranking it second in U-Haul’s 2026 Midyear Migration Trends. Texas led for Gen Z, while California ranked third for millennials and 10th for boomers and Gen X. U-Haul noted that Gen Z is drawn to densely populated areas with colleges, jobs, and apartments. California remains the most populous state, with a large job market, though its unemployment rate is high.
Our Reading
The numbers tell one story.
California’s population shrank but still has the largest job market.
Gen Z keeps moving in despite high costs.
Texas and New York top the list for young movers.
The state’s scale and opportunities keep pulling people in.
California’s job market remains the largest in the country.
Gen Z’s choices suggest a search for opportunity, not just climate.
High costs are a trade-off for access to industries and culture.
The state’s pull is strong, even as it loses residents overall.
Author: Evan Null
The biggest job market in the country
California’s scale is hard to compete with. It has been the most populous state since 1962, when it passed New York. Even after five years of decline, it has about 39.4 million residents, roughly 11.5% of the U.S. population.
That population supports a huge job market, which matters for a generation just starting its careers. California had 18.2 million nonfarm payroll jobs in August, more than any other state. It also led the nation in monthly job gains, adding 39,400, according to the Bureau of Labor Statistics. The state’s Employment Development Department said it added 138,500 jobs over the past year.
The picture isn’t all rosy. California’s unemployment rate remains among the highest in the country, and the state’s Legislative Analyst’s Office has warned that early-2026 job growth may have been overstated. Still, few states offer early-career workers as many employers in as many industries, from Nvidia, Apple, and Google to Hollywood’s major studios.
California’s job market remains the largest in the country, even with a shrinking population.
Employers and industries continue to attract young workers despite economic challenges.
Expensive, but so is everywhere else
California remains one of the country’s priciest places to live. The median value of an owner-occupied home is $734,700, and median gross rent is $2,036, according to Census Bureau data for 2020 to 2024.
Gen Z, though, is being squeezed almost everywhere. A record 1 in 3 adults under 35 lived with their parents in 2025, most of them employed. Because so many young Americans grew up in California, moving home often means moving back to the Golden State. One analysis cited by Fortune found that 20% of working adults in Greater Los Angeles live with their parents, compared with 6% in the Austin metro. Others are getting help from family to stay in expensive cities. A Bank of America study found that 54% of 18- to 27-year-olds pay nothing toward their housing costs.
California’s taxes are among the nation’s highest, but the state also offers a broader social safety net than many others, which can cushion young workers between jobs.
High housing costs are a shared burden for young adults across the country.
Family support helps many stay in expensive cities, even if they can’t afford it alone.
The lifestyle premium
Then there’s the pull that has drawn Americans west for generations. California has beaches, mountains, deserts, and forests, and in parts of the state you can ski in the morning and surf in the afternoon. Much of the coast enjoys a Mediterranean climate that keeps temperatures mild year-round. For many young movers, the high cost of living is a worthwhile premium.
U-Haul’s data has limits. Not every mover rents from U-Haul, and not every one-way rental is a permanent change of address. Each move is credited to the generation of whoever signs the contract, and customers must be 18 to rent a truck, so the youngest members of Gen Z aren’t captured. Millennials and Gen X together account for more than 60% of the company’s one-way rentals.
Still, the data suggests that California’s scale keeps pulling young Americans in, even as the state loses residents overall: its jobs, its people, and the family ties that bring them home.
California’s lifestyle still attracts young people, despite the high cost of living.
The state’s cultural and geographic appeal remains strong, even as it loses population overall.
