Gen Z and Millennials Are Fleeing Expensive Coasts for Smaller Cities

Young Americans Are Reimagining Where They Live

As the cost of living continues to rise across the United States, young Americans are making significant changes to where they call home. A new analysis by Redfin shows that both Gen Zers and millennials are leaving some of the nation's most expensive coastal cities for smaller, more affordable metropolitan areas—though their motivations and destinations differ considerably.

This shift in migration patterns reflects a changing demographic landscape, with younger generations increasingly prioritizing career opportunities over housing affordability. Meanwhile, millennials appear to be placing a premium on economic stability and home ownership as they enter the next phase of life.

"Gen Zers are chasing opportunity, while millennials are chasing space," said Sheharyar Bokhari, principal economist at Redfin.

The data comes from the U.S. Census Bureau's American Community Survey (ACS) 1-year microdata for 2014, 2019, and 2024, focusing exclusively on adults aged 19 and older. The youngest Gen Zers are now 14 years old.

Where Are Gen Zers Moving To?

San Antonio leads the list of preferred destinations for Gen Zers, with a net inflow of 10,678 individuals. Washington, D.C., comes in second place with 8,631 newcomers, followed by Austin at 8,590.

• San Antonio
• Washington, D.C.
• Austin
• Nashville
• Dallas

These five cities have one thing in common: they offer robust entry-level job markets that are increasingly rare in other parts of the country. The share of 19- to 24-year-olds who left their metro area fell from 15.3% in 2014 to 13.5% in 2024.

Entry-level job postings have declined by roughly 35% since early 2023, according to Revelio Labs data. Meanwhile, the unemployment rate for recent graduates hovers around 5.7%, significantly higher than the national average of 4.1%.

"When entry-level hiring is tight, fewer young workers can afford to relocate on speculation," Bokhari explained. "Those who do move go to metros with the deepest job markets for early-career workers like D.C., Austin and Nashville."

While San Antonio's healthcare industry offers numerous opportunities in hospitals and nursing, Washington, D.C. provides strong career paths for political science, public policy, and communications graduates. Austin combines tech and healthcare sectors while offering a vibrant cultural scene.

Interestingly, despite higher housing costs in cities like Austin, Gen Zers are choosing these locations because the value proposition is clear—jobs and lifestyle at an affordable price point. The median home sale price in Austin was $549,636 in August 2026, compared to the national average of $398,596, and far below Los Angeles ($1.05 million) or San Francisco ($1.6 million).

Millennials' Migration Trends

For millennials—ages 30 to 45—the most popular destination is Houston, with a net inflow of 16,365 individuals. Dallas and Baltimore follow with 13,072 and 11,724 respectively.

• Houston
• Dallas
• Baltimore
• Las Vegas
• Atlanta

All five cities have median home-sale prices under $450,000, which aligns with the needs of this generation—often seeking family stability and the ability to purchase a home without breaking their budget.

Millennials' migration reflects not only financial pragmatism but also demographic shifts. According to the National Association of Realtors' latest generational report, millennials accounted for 26% of all buyers in the housing market—compared to just 4% for Gen Zers. Boomers represented 42%, and Gen Xers made up 25%.

Many millennials are now at a life stage where they're focused on starting or expanding families, making them more inclined to seek places with strong job markets and affordable housing options.

Which Cities Are Young Americans Leaving?

Both generations are leaving similar cities, though in different numbers. New York tops the list of cities losing Gen Zers, with a net outflow of 29,554 individuals. Los Angeles is next at -16,465.

For millennials, New York is again the biggest departure point with a net outflow of 42,698, followed by Los Angeles (-31,107), Miami (-21,373), Washington, D.C. (-12,364), and San Francisco (-11,819).

Washington, D.C., presents a particularly interesting case: it's attractive to recent graduates but less so for established professionals who may be starting families. The long-term risk is that cities like Los Angeles and New York lose their future workforce and tax base if young residents continue to leave.

Moving Less, And Less Far

General trends indicate a broader shift toward fewer relocations among young Americans. In 2024, only about 14% of 19- to 24-year-olds moved away from their metro area, down from approximately 15% in 2014.

Similarly, the percentage of 25- to 34-year-olds who relocated declined from 11% in 2014 to 9% in 2024. The main factor driving this behavior is higher housing costs, keeping Americans rooted to their current locations or making only short moves within the same state or region.

The most common route for Gen Zers moving between cities includes Los Angeles to Riverside, California (10,261 movers), followed by New York to Philadelphia (9,284 movers) and Los Angeles to San Diego (9,237 movers).

For millennials, the top routes are Los Angeles to Riverside (19,983 movers), Washington, D.C. to Baltimore (11,343 movers), and San Jose to San Francisco (11,302 movers).

What these patterns reveal is a new normal: young people are no longer moving across the country in search of dreams. Instead, they're making calculated decisions based on economic realities and lifestyle preferences, often staying within familiar regions.

Implications for Future Growth

The data paints a clear picture of shifting priorities among American youth. Gen Zers are more focused on launching their careers and building social networks, while millennials prioritize financial security through homeownership.

As these trends continue, it's likely that smaller cities in the South and Midwest will see continued growth, while coastal hubs may face challenges maintaining their appeal to younger demographics. The migration map of America is changing—one city at a time.