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California’s high costs aren’t deterring Gen Z from moving there: Zillow | Black Kite Express

TO Zillow analysis of US Census Bureau Data released Friday shows that the youngest group of prospective homebuyers, Generation Z, is bucking a larger trend by moving to California.

While California lost nearly 215,000 residents to net migration in 2022, census data also shows the Golden State saw a net gain of nearly 44,000 Gen Z adults (people born between 1996 and 2004, excluding students) who They moved there from other states.

Across all age groups, California led all states in net outmigration in 2022, but was second only to Texas (77,000) in having the most net immigration of Generation Z residents.

Zillow noted that California is not the only state with a relatively high cost of living that has attracted younger residents, even as net migration among other age groups has declined or remained stable.

A cost of living index maintained by the Missouri Economic Research and Information Center found that California was the third most expensive state last year (behind only Hawaii and Massachusetts). Washington, Colorado and Virginia also ranked in the bottom half of states in terms of affordable living, but joined California among the 10 states with the highest net immigration among Generation Z.

“Compared to all those who moved interstate, Gen Z adults who moved to California, Washington, Colorado, or Virginia were more likely to have a four-year college degree, more likely to serve in the military, and more likely to to work in technology. Edward Berchick, senior population scientist at Zillow, in a news release.

Zillow also found that 77% of Gen Z adults who moved to these four states are renters. And each of these states, according to census data, had monthly housing rental costs higher than the American median price of $1,300, led by California at $1,856 a month.

“Generation Z is likely attracted to job opportunities in these states, despite higher housing costs,” Berchick added. “They may also be at a stage in life where they are willing and able to be flexible in their living standards as they begin their careers.”

Generation Z remains a small portion of the homebuyer market at 4%, according to a 2023 report from the National Association of Realtors (NAR). That proportion increased from 3% the previous year. And Generation Z represents the largest proportion of single female homebuyers at 31%, NAR reported.

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