Gen Z movers are heading to warmer climates, willing to pay higher housing costs: Zillow
Some Gen Zers are taking advantage of low home prices in Florida and Texas. (iStock)
Gen Z’s moving habits show a preference for warmer states, even if moving there means paying higher rent costs, a Zillow report showed.
The three states that saw the largest influx of Gen Zers in 2022 were Texas, California and Florida. California saw the largest outflux of residents in general, with nearly 215,000 residents leaving. Still, 44,000 Gen Zers moved to the state, according to Zillow. Texas saw the largest influx of Gen Zers, over California and Florida, with a net gain of more than 76,000 movers.
The other states Gen Z moved to most often included North Carolina, Washington, Colorado, Virginia, Illinois, Georgia and Arizona.
"Compared to all interstate movers, Gen Z adults who moved to California, Washington, Colorado or Virginia were more likely to have a four-year college degree, more likely to be serving in the military, and more likely to work in tech, ACS data shows," Edward Berchick, a principal population scientist at Zillow, said. "Gen Z movers are likely drawn to the job opportunities in these states, despite the higher costs of housing."
"They may also be in a stage of life where they're willing and able to be flexible in their standards of living while starting their careers," Berchick continued.
A large portion of the younger generation that moved opted to rent, Zillow found. In some states, this meant higher rent payments than the national average. In California, the average rent price is $1,856, in Washington it’s $1,592, and in Virginia it’s $1,440. The country’s national average is just $1,300.
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New England saw the lowest net migrations
Rural areas and states with colder climates didn’t see nearly as many Gen Z movers, according to Zillow’s report.
Michigan was the only state that saw more Gen Zers move out of state than in — 2,858 Gen Z residents moved out of state. Maryland and Idaho also saw the lowest net migrations. New England, with its cold weather and smaller population, isn’t as desirable for younger generations. Vermont, Maine, New Hampshire and Rhode Island all had very few Gen Zers moving in.
Gen Zers overlap with other generations in a few states. Maryland had very few Gen Zers move in, and even more residents from other generations moved out. The state saw a negative net migration of -36,632 in general, meaning more people moved out than moved in.
Florida was also a popular state for movers in general. It was one of the top states for Gen Zers looking to move and the top state for the general population.
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Housing prices are falling in certain states
While housing prices remain high across the U.S., certain states are seeing housing costs drop due to a variety of factors. Condo prices in many Florida markets are dropping, largely due to high homeowners insurance costs, Redfin reported.
In Jacksonville, the average condo price declined by approximately 7% year-over-year in January. The same goes for Miami, where condo prices fell by 3% year-over-year. HOA and maintenance fees are also driving buyers away, forcing sellers to lower prices on the condos they’re selling.
"Condo costs are shocking," said Juan Castro, a Redfin Premier agent in Orlando. "Condos that used to have a $400 monthly maintenance fee may now have a $700 fee. It’s causing buyers to rethink their plans."
Outside of Florida, home prices in Jackson, Mississippi decreased at the end of 2023, according to a Business Insider analysis of National Association of Realtors (NAR) data. Prices decreased by 14.1% in Jackson year-over-year.
Cleveland, Ohio also saw home prices decrease by 8.6%. The average price in Cleveland was $190,700 at the end of 2023, but it was $236,700 in Q3 2023.
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