California is attracting more young Americans even as its population falls overall, with Gen Z ranking the state second for one-way moves behind Texas, according to U-Haul’s latest migration data.
The company’s 2026 Midyear Migration Trends National Report tracks the net gain of one-way U-Haul trucks, trailers and U-Box containers between July 2025 and June 2026. It found that California remained a leading destination for Gen Z, while also ranking third for millennials behind Florida and Texas.
The findings contrast with California’s wider population trend. The state lost 0.5% of its residents between April 2020 and July 2025, and recorded the largest net loss of one-way U-Haul customers for the sixth consecutive year in the company’s 2025 Growth Index.
Why Gen Z is moving to California
Gen Z’s choices suggest that access to people, jobs and housing may matter as much as warm weather and lower costs. After Texas and California, the generation’s preferred states were New York, Illinois and Colorado.
New York City, Dallas–Fort Worth, Chicago, the San Francisco Bay Area and Los Angeles made up its five most popular metropolitan areas. U-Haul said the generation was being drawn to densely populated markets with universities, entry-level employment and apartments.
Texas, Florida, Nevada, Austin, Charlotte and Houston also featured among Gen Z’s top 10 destinations, showing that the Sun Belt continues to appeal to younger movers. But the results mark a shift from the recent pattern of young workers leaving San Francisco for cheaper cities such as Nashville and Orlando.
California did not feature among the top 10 destinations for baby boomers or Gen X, whose moves were concentrated in the south-east. San Diego was the only California metropolitan area on either older generation’s list, ranking ninth for Gen X.
A large job market despite economic pressure
California’s size remains a powerful draw for people starting their working lives. The state has about 39.4 million residents, roughly 11.5% of the US population, and has been the country’s most populous state since overtaking New York in 1962.
It recorded 18.2 million non-farm payroll jobs in August, more than any other state, and added 39,400 jobs during the month, the largest monthly increase in the country. California’s Employment Development Department said the state had added 138,500 jobs over the previous year.
However, its unemployment rate remains among the highest in the US. California’s Legislative Analyst’s Office has also warned that early-2026 job growth may have been overstated.
Even so, the state offers early-career workers a broad range of employers and industries, including Nvidia, Apple, Google and the major Hollywood studios.
The cost of living for young movers
Housing remains a significant obstacle. The median value of an owner-occupied home in California was $734,700, while median gross rent stood at $2,036, based on Census Bureau data covering 2020 to 2024.
Young adults are facing high housing costs across the US. A record one in three adults under 35 lived with their parents in 2025, most of them in employment. For those raised in California, moving back in with family can mean returning to the state rather than leaving it.
One analysis cited in the report found that 20% of working adults in Greater Los Angeles lived with their parents, compared with 6% in the Austin metropolitan area. A Bank of America study found that 54% of 18- to 27-year-olds paid nothing towards their housing costs.
California has some of the highest taxes in the country, but it also provides a broader social safety net than many other states, potentially offering support to workers between jobs.
Its beaches, mountains, deserts and forests, along with a mild Mediterranean climate in much of the coastal region, add to the state’s appeal. For some young movers, those lifestyle benefits appear to outweigh the expense.
U-Haul’s figures do not capture every move or permanent change of address. They are based on the age of the person signing the rental contract, and customers must be at least 18 to hire a truck, meaning the youngest members of Gen Z are not included. Millennials and Gen X account for more than 60% of the company’s one-way rentals.
Nevertheless, the figures indicate that California continues to attract young people through its concentration of jobs, large urban centres and family connections, even while the state loses residents overall.
