A new LendingTree study found that California is losing more members of Gen Z than any other state, and Texas has emerged as the top destination for young adults leaving the Golden State. Nearly one in four Gen Zers moved to a different state in 2024, according to U.S. Specifically, the study found that 23.9 percent of young adults in Gen Z changed states during the year, making it the most mobile generation in America.
With inflationary pressures weighing heavily on most Americans, it's easy to see why many would hop to states where they can save money on expenses “ Migration trends among Gen Zers can have long-term economic and political implications. Because young adults are the future workforce, homebuyers and taxpayers of a state, a shifting population from California to Texas could affect labor markets and housing demand in the long run. California recorded the largest net loss of Gen Z residents in 2024, far exceeding any other state, according to the new report from Lending Tree, which shows it lost a net 58,109 after an estimated 186,827 moved out while 128,718 moved in.
That net loss was significantly larger than those recorded in New Jersey, which lost 37,556 Gen Z residents, and Illinois, which lost 20,031. For young Californians looking elsewhere, Texas was the most popular destination. LendingTree estimated that 19,287 Gen Z adults who left California relocated to Texas, making the Lone Star State the top landing spot for the generation.
Experts say this is largely because Texas is attracting residents with its relatively lower housing costs and growing job market. The absence of a state income tax can also be compelling for many. They can find areas such as Texas and other southern states as cheaper alternatives while still earning a decent salary, especially if remote work is still being offered on a California salary basis,” Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, told Newsweek.
Quality of life may not be the same for everyone, as seasonal weather patterns don’t always allow for the same level of outdoor life.” Generally, Gen Zers are far more likely to relocate than older Americans. While 23.9 percent of Gen Z adults moved to a different state in 2024, only 14 percent of millennials did so. The share was even lower among Gen Xers, at 7.2 percent, and baby boomers, at 5.2 percent.
The mass migration from Gen Z invariably has to do with the fact that because they are younger, they often have fewer obligations tying them to a particular location. But housing affordability is also likely playing a role. California is one of the nation's most expensive housing markets, while many areas of Texas offer lower home prices and rents as well as strong employment opportunities.
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