As ultrawealthy tech founders such as Larry Page, Peter Thiel, and Travis Kalanick leave California amid opposition to its proposed billionaire tax, a new report indicates that Gen Z is also leaving the Golden State in large numbers.

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 the latest available Census data.

Texas was the biggest destination for young Californians on the move. Other states also posted sizable net gains in nationwide Gen Z migration: South Carolina added 22,843 young adults, Missouri gained 14,063, and Tennessee took in 13,537. Several of these states offer a lower cost of living than many other parts of the country, potentially giving young adults more room to stretch their paychecks.

Washington, D.C., was a notable outlier. The nation's capital recorded a net gain of 13,905 Gen Z adults despite ranking among the more expensive places to live. Still, the region's concentration of high-paying jobs may help offset its steep housing and living costs for some young professionals.

Relocating across state lines for school, a new job, or a change of scenery is nothing new for young adults. The scale of the current movement, however, is striking: nearly 11 million Gen Z adults—roughly one in four—moved in 2024.

"When you're young, and you're just getting started, you don't have to worry about moving your kids to a new school or uprooting your entire family," report author Matt Schulz told Realtor.com. "You can just kind of get up and go, and I think we're certainly seeing some of that in this."

Soaring Costs and a Tough Job Market Are Pushing Gen Z to Move

Persistent inflation, stubborn housing costs, and higher energy prices continue to strain household budgets across the country. For young people, those pressures come on top of an unwelcoming job market for entry-level workers and the restart of student loan payments, making it even harder to get their lives off the ground.

Some 42% of Gen Z are living paycheck-to-paycheck, according to a recent Bank of America study. Nearly half reported that the high cost of living is a top barrier to financial success.

Yet even as high living costs push some young adults to seek opportunities elsewhere, California continues to draw newcomers. According to U-Haul's 2026 Midyear Migration Trends report, which tracks the net gain of its one-way truck and trailer rentals, California ranked among the top three destinations for both Gen Z and Millennial movers from July 2025 through June 2026. The San Francisco Bay Area specifically ranked among the generations' top metro destinations.

The state's role at the center of the AI boom may help explain its appeal. California is home to major AI companies such as Anthropic and OpenAI, along with 56 Fortune 500 companies, ranging from Apple to Williams-Sonoma. For young workers hoping to break into technology or other high-paying industries, those opportunities may help offset the state's steep living costs.

Still, California's pull with some newcomers has not translated into stronger overall migration numbers. The state has ranked last in U-Haul's annual growth rankings for six consecutive years, highlighting the challenge of attracting new residents while others continue to leave.

From Big Cities to Overlooked Markets: Where Experts Say Gen Z Can Get Ahead

For Gen Z deciding where to put down roots, Scott Galloway, a podcaster and professor at NYU's Stern School of Business, has argued that big cities offer a career advantage. He has said that two-thirds of global economic growth over the next 30 years will come from the world's 20 "supercities"—such as London, Milan, New York, and San Francisco—where wealth, talent, and innovation are concentrated.

"When you're in a city, you're playing against Serena Williams every day," Galloway said on The Diary of a CEO podcast in 2024. "Everyone is smart, everyone is-dressed, everyone is working hard, everyone is taking chances. And you are surrounded by people who are very successful, and you are gonna bump off professional and personal [opportunities] every day."

Barbara Corcoran, the self-made millionaire real estate mogul and Shark Tank investor, offers a different approach to building wealth: look for affordable property in overlooked markets.

"Go anywhere that has a poor school district where prices are really low," Corcoran said on the Elvis Duran radio show in 2023.

The South, she added, can be a particularly promising place to find deals—but not Florida, where housing costs in some markets have surged and wealthy newcomers have helped fuel demand.

"Go anywhere in the South other than the hot spot," Corcoran said. "There's always a cheap house to buy, always. But not Florida, forget about Florida."

This story was originally featured on Fortune.com.