As billionaires ditch California, Gen Z is following close behind—the state saw the biggest net loss of young people, many moving to Texas

A new report reveals that Gen Z is leaving California in droves, as ultrawealthy tech founders such as Larry Page, Peter Thiel, and Travis Kalanick have moved out amid opposition to a proposed billionaire tax. In 2024, California recorded the largest net loss of Gen Z adults in the nation, with approximately 58,109 young adults departing. Texas emerged as the primary destination for these young Californians. Other states also saw notable gains in Gen Z migration, including South Carolina, Missouri, and Tennessee.

Several of these states offer a lower cost of living compared to other parts of the country, providing young adults with more financial flexibility. Despite Washington, D.C. recording a net gain of 13,905 Gen Z adults, the capital's high living costs and limited job market make it a less attractive option for many. Nationwide, nearly 11 million Gen Z adults moved in 2024, with about one-quarter making the transition.

The migration is driven by soaring costs, challenging job markets, and the restart of student loan payments, which disproportionately affect young people. Living paycheck to paycheck is a reality for 42% of Gen Z, and they cite the high cost of living as a major barrier to financial success. California, particularly the San Francisco Bay Area, remains a popular destination for both Gen Z and Millennials, despite its steep living costs.

The state's role in the AI boom, home to major companies like Anthropic and OpenAI, may attract some young workers despite the high living expenses.

However, California's appeal has not translated into stronger overall migration numbers, with the state ranking last in U-Haul's annual growth rankings for six consecutive years. Experts suggest that big cities can offer career advantages, as two-thirds of global economic growth over the next 30 years is expected to come from the world's 20 "supercities." Nonetheless, Barbara Corcoran advocates for looking for affordable properties in overlooked markets, particularly in the South, as an alternative to expensive cities.