California has been experiencing a population decline for the past five years, with a 0.5% drop between April 2020 and July 2025, according to the U.S. Census Bureau. Despite this trend, Gen Z is bucking the exodus, with many young adults moving to the Golden State. U-Haul’s 2026 Midyear Migration Trends National Report ranks California as the second most popular destination for Gen Z, behind only Texas. The state didn’t make the top 10 for boomers or Gen X, who are mostly relocating to the Sun Belt.
Gen Z’s migration choices reflect a preference for densely populated markets with colleges, entry-level jobs, and apartments. While Texas tops the list for this generation, California follows closely, along with New York, Illinois, and Colorado. The state’s massive job market, with 18.2 million nonfarm payroll jobs as of August, is a major draw for young professionals. California also led the nation in monthly job gains, adding 39,400 jobs in August alone, according to the Bureau of Labor Statistics.
Despite its high cost of living, with a median home value of $734,700 and median rent at $2,036, Gen Z is finding ways to afford life in California. Many are living with their parents or receiving financial help from family. The state’s broader social safety net also provides some cushion for young workers. Additionally, California’s diverse landscapes and mild climate offer a lifestyle premium that many young movers find worth the expense.
U-Haul’s data has limitations, as not all movers rent from the company, and not every rental indicates a permanent move. However, the trend suggests that California’s job opportunities, social connections, and lifestyle continue to attract young Americans, even as the state loses residents overall.