Source: Fortune
Summary
A LendingTree report shows California lost 58,109 Gen Z adults in 2024, with Texas and other states gaining large numbers. The migration is driven by high costs, a tough job market, and student debt. Despite high living expenses, Washington, D.C., also saw a net gain. California remains a top destination for some due to its AI industry and tech opportunities, though it ranks last in U-Haul’s migration trends. Experts suggest big cities offer career advantages, while others recommend affordable markets.
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The numbers tell one story.
California lost more Gen Z adults than any other state.
Texas, South Carolina, and Tennessee gained the most.
Washington, D.C., bucked the trend with a net gain.
The AI boom still draws some to California despite the costs.
Young adults are moving for better opportunities, not just lower costs.
High housing prices and student debt weigh heavily on Gen Z.
Some experts say big cities are still the best bet for career growth.
Others suggest looking for affordable markets outside the usual spots.
Author: Evan Null
Soaring costs and a tough job market are pushing Gen Z to flee
Persistent inflation, stubborn housing costs, and higher energy prices continue to strain household budgets across the country. For young people, those pressures come on top of an unfriendly job market for entry-level workers and the restart of student loan payments, making it even harder to get their lives off the ground.
Some 42% of Gen Z are living paycheck to paycheck, according to a recent Bank of America study. Nearly half reported that the high cost of living is a top barrier to financial success.
Yet even as high living costs push some young adults to seek opportunities elsewhere, California in particular continues to attract some newcomers.
According to U-Haul’s 2026 Midyear Migration Trends report, which tracks the net gain of its one-way truck and trailer rentals, California ranked in the top three destinations for both Gen Z and millennial movers from July 2025 through June 2026.
The state’s role at the center of the AI boom may help explain its appeal. California is home to major AI companies such as Anthropic and OpenAI, along with 56 Fortune 500 companies, ranging from Apple to Williams-Sonoma.
From big cities to overlooked markets: Where experts say Gen Z should move to get ahead
For Gen Z trying to decide where to put down roots, Scott Galloway, a podcaster and NYU Stern School of Business professor, has argued that big cities can offer a career advantage.
He said that two-thirds of global economic growth over the next 30 years will come from the world’s 20 “supercities” such as London, Milan, New York, and San Francisco, where wealth, talent, and innovation are concentrated.
“When you’re in a city, you’re playing against Serena Williams every day,” Galloway said on The Diary of a CEO podcast in 2024. “Everyone is smart, everyone is well-dressed, everyone is working hard, everyone is taking chances.”
But Barbara Corcoran, the self-made millionaire real estate mogul and Shark Tank investor, offers a different approach to building wealth: Look for affordable property in overlooked markets.
“Go anywhere that has a poor school district where prices are really low,” Corcoran said on the Elvis Duran radio show in 2023.
