Gen Z is defying trends and betting on California—even as older Americans flee to the Sun Belt
California’s population has shrunk since 2020, but new U-Haul data ranks it Gen Z’s No. 2 destination, behind only Texas. Big-city jobs, family ties, and lifestyle help explain the pull.
As Gen Z, born between 1997 and 2012, continues to move to California despite the state's population decline, older generations such as boomers and Gen X are increasingly heading to the Sun Belt. U-Haul's 2026 Midyear Migration Trends National Report places California at No. 2 for Gen Z, behind only Texas, while San Diego is the only California metro on the list for Gen X. Millennials rank California as No. 3, following Florida and Texas.
While Gen Z is drawn to densely populated markets with numerous colleges, entry-level jobs, and affordable apartments, the state remains one of the most expensive places to live, with a median home value of $734,700 and rent at $2,036. Despite this, high employment opportunities, diverse industries ranging from tech giants like Google and Apple to Hollywood studios, and the lifestyle benefits such as the state's diverse climate, beaches, mountains, deserts, and forests, continue to pull young Americans to California.
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