# Gen Z flees California for cheaper states

> California lost 58,109 young adults in 2024 as Gen Z chases affordability, though the state's AI boom still draws some newcomers.
- Title: Gen Z flees California for cheaper states · Fortune | Shortify
- Summary: California lost 58,109 young adults in 2024 as Gen Z chases affordability, though the state's AI boom still draws some newcomers. California recorded its…
- Keywords: gen z, california, migration, texas, cost of living, housing affordability, ai boom, Gen, flees, cheaper, states, Fortune
- Source: Fortune — https://fortune.com/2026/10/19/gen-z-moving-american-dream-afforability-leave-california-for-the-south-but-ai-boom-still-attractive
- Author: Preston Fore
- Read time: 2 min
- Topics: gen z, california, migration, texas, cost of living, housing affordability, ai boom
## California's Gen Z exodus
California recorded the nation's largest net loss of Gen Z adults in 2024, shedding roughly 58,109 young adults, according to a new LendingTree report analyzing Census data.
## Texas leads the destinations
Texas was the biggest destination for young Californians on the move. South Carolina gained 22,843 Gen Z adults; Missouri gained 14,063; Tennessee gained 13,537.
## Why young people are moving
Persistent inflation, stubborn housing costs, and higher energy prices strain household budgets. Gen Z also faces an unfriendly job market for entry-level workers and restarted student loan payments.
## The scale of Gen Z's struggle
Some 42 percent of Gen Z are living paycheck-to-paycheck, according to a recent Bank of America study. Nearly half reported that high cost of living is a top barrier to financial success.
## California still attracts some
According to U-Haul's 2026 Midyear Migration Trends report, California ranked in the top three destinations for both Gen Z and Millennial movers from July 2025 through June 2026.
## The AI boom's pull
California is home to major AI companies such as Anthropic and OpenAI, along with 56 Fortune 500 companies ranging from Apple to Williams-Sonoma. These opportunities may help offset the state's steep living costs.
## Two paths to building wealth
Scott Galloway argues two-thirds of global economic growth over the next thirty years will come from twenty supercities like London, Milan, New York and San Francisco where wealth and talent concentrate.

> When you're in a city, you're playing against Serena Williams every day.
## Corcoran's affordable alternative
Barbara Corcoran recommends looking for affordable property in overlooked markets. Go anywhere in the South other than hot spots where prices are low, she said, but avoid Florida where housing costs have surged.

> Go anywhere in the South other than the hot spot. There's always a cheap house to buy, always. But not Florida, forget about Florida.
## Key takeaway

California recorded its largest net loss of Gen Z adults in 2024, with roughly 58,109 young people leaving, many for cheaper states like Texas.