Yahoo Finance Top 15 Cities Where Gen Z is Moving in the US
In this article, we will take a look at the top 15 cities where Gen Z is moving in the US. If you want to read our discussion on the relocation trends, you can go directly to the Top 5 Cities Where Gen Z is Moving in the US.
Gen Z, especially those reaching adulthood, are making an impact on local economies through their migration patterns. Driven by factors like college, career opportunities, or a desire for new experiences, Gen Zers are relocating in large numbers. In fact, the movement rate of Gen Z during the last year stood at 17%, which was far above the national average, according to the Annual Social and Economic Supplement of the Current Population Survey.
The US cities Gen that Z is moving to show the stark differences in their preferences as compared to other generations. They are moving to large cities while other generations are leaving the same cities. Moreover, job opportunities and sunshine seem to be among the important considerations for Gen Zers. The top 10 states Gen Zers are moving to as of 2022 include Texas, California, and Florida.
While job opportunities play a major role, other factors, such as education, also influence Gen Z migration patterns. College towns particularly remain popular destinations. College towns like Ann Arbor, Michigan (home to the University of Michigan) and College Station, Texas (home to Texas A&M University) saw significant inflows of Gen Z residents. These cities offer a lively atmosphere along with access to educational resources.
Key Players in the US Moving Services Market
Due to the quantum of migration within the US and to other countries, it is no wonder that the US moving services market is expected to see a significant growth of approximately $3.92 billion at a compound annual growth rate (CAGR) of 3.68% between the years 2022 and 2027. Within this market, the residential segment is the largest. The pandemic and subsequent rise of remote work were the major contributors to the growth of this segment as they fueled people's movement towards more affordable locations.
Other major drivers of this industry include the growth of the real estate industry, an increase in immigration, and a rise in corporate relocations. The high cost of moving and the challenges in finding suita0ble housing are two factors that can have a negative impact on the growth of this sector. Key players within the market include ArcBest Corporation (NASDAQ:ARCB), XPO, Inc. (NYSE:XPO), and FedEx Corporation (NYSE:FDX).
ArcBest Corporation (NASDAQ:ARCB) is a big name in the US moving services market and is one of the biggest trucking companies in the US. It is a multibillion-dollar logistics company that provides a comprehensive set of supply chain solutions, including less-than-truckload (LTL) shipping, truckload shipping, warehousing and distribution, intermodal services, and more. ArcBest Corporation (NASDAQ:ARCB) has beat earnings estimates by an average of 30.91% for the last two quarters and is expected to beat projected earnings again in the next quarter.
XPO, Inc. (NYSE:XPO) is another major player in the moving and transport services industry. The company specializes in less-than-truckload (LTL) freight, a key service for customers who need to ship goods that don't fill an entire truck. XPO, Inc. (NYSE:XPO) recently opened three new service centers to provide better services to customers. Currently, the company’s network in America consists of 297 such service centers.
FedEx Corporation (NYSE:FDX) is a global logistics giant offering a suite of services, including shipping, freight, trucking, and e-commerce solutions. It has different companies operating under the umbrella brand of FedEx. Here’s what Artisan Partners said about FedEx Corporation (NYSE:FDX) in its Q4 2023 investor letter:
“Other Q4 laggards were global reinsurer Arch Capital and shipping company FedEx Corporation (NYSE:FDX)—holdings that pulled back following large gains. Back in September 2022, FedEx was selling for less than 8X our estimate of normalized earnings due to substantial pessimism. Although the demand environment remains challenging globally, particularly in the Express segment, the company is delivering solid earnings growth driven by cost savings initiatives. FedEx’s DRIVE program, which seeks to deliver $4 billion in permanent cost reductions by creating an integrated air-ground network similar to that of rival UPS, is showing progress, and workforce reductions have also been enacted. While operating results can be choppy, FedEx’s longer term business economics are highly favorable given the global shipping industry’s consolidated structure and massive barriers to entry that afford operators with pricing power to counter cost inflation and earn respectable returns on capital over the business cycle.”
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Our Methodology
To shortlist the top 15 cities where Gen Z is moving in the US, we referred to the 1-Year American Community Survey from the US Census Bureau. Data for over 250 cities was analyzed. Gen Z included all people between the ages of 18 and 24 at the time of the survey. The cities have been ranked in ascending order based on the rate at which Gen Zers moved in as a percentage of the city’s total population as of 2022. With each listing, we have also shared the number of Gen Zers who moved into the city to give an idea of the magnitude of Gen Z migration.
You can also check out the Top 15 Cities Where Millennials Are Moving in the US here.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Top 15 Cities Where Gen Z is Moving in the US
15. Columbia, Missouri
Gen Zers Moving as a Percentage of the Total Population: 11.42%
Number of Gen Zers Who Moved in: 14,595
Columbia is a city in the state of Missouri, United States. It is renowned for housing the University of Missouri. Many of the cities witnessing an increase in Gen Z residents are college towns, and Columbia is one of them. Since Gen Z includes current 18- and 19-year-olds, college students are counted in the various population censuses as city residents while they live on campus. The moved-in Gen Zers make up 11.42% of the population of Columbia, translating to 14,595 individuals.
14. Eugene, Oregon
Gen Zers Moving as a Percentage of the Total Population: 11.49%
Number of Gen Zers Who Moved in: 20,297
Eugene attracts many young adults, particularly those in Gen Z. This trend is likely due to a combination of factors. Firstly, the city is home to the University of Oregon, a major draw for students seeking a bright college-town atmosphere. It also offers a welcome change from large, crowded cities.
13. Denton, Texas
Gen Zers Moving as a Percentage of the Total Population: 11.78%
Number of Gen Zers Who Moved in: 17,558
Denton is home to the University of North Texas campus. More Gen Z adults are moving to this Texas city due to its economy, university access, and local job and housing markets. Denton has secured the thirteenth position on our list of the top cities where Gen Z is moving in the US.
12. Norman, Oklahoma
Gen Zers Moving as a Percentage of the Total Population: 13.38%
Number of Gen Zers Who Moved in: 17,558
Norman, Oklahoma, consistently ranks as one of the best places to live in the state. This city offers a mix of factors that appeal to young adults, particularly Gen Z. First and foremost, Norman has a lower cost of living than the national average. This makes it an attractive option for recent college graduates. Moreover, Norman offers a suburban environment with a high rate of homeownership, appealing to young professionals seeking a balance between city life and a quieter residential atmosphere.
11. Madison, Wisconsin
Gen Zers Moving as a Percentage of the Total Population: 13.43%
Number of Gen Zers Who Moved in: 36,368
Madison, the capital of Wisconsin, is situated in the west of Milwaukee. The city attracts Gen Z due to its great job offerings, college-town status, and affordability. The city is considered a budding technology hub and offers many technological jobs. Over 36,000 Gen Z individuals (13.43% of the population) moved to Madison in 2022, making it one of the top 15 cities where Gen Z is moving in the US.
10. Syracuse, New York
Gen Zers Moving as a Percentage of the Total Population: 13.81%
Number of Gen Zers Who Moved in: 19,664
Syracuse became home to 19,664 Gen Z migrants, which is equivalent to 13.8% of the population in 2022. The city has begun attracting young professionals who want to benefit from the city’s educational and professional offerings, strong economy, and quality of life. Syracuse also houses Syracuse University, a top-ranked research institution with 40 interdisciplinary centers, where graduates can pursue more than 240 advanced degrees. The cost of living in Syracuse is low compared to most other US cities. Syracuse citizens spend 12% less than the average American on basic necessities and 28% less than the average New Yorker.
9. Columbia, South Carolina
Gen Zers Moving as a Percentage of the Total Population: 15.11%
Number of Gen Zers Who Moved in: 20,778
Owing to the lower cost of living, comfortable climate, easy commute, as well as job opportunities in the growing fields of healthcare and technology, Columbia, South Carolina, attracts and appeals a great deal to Gen Z. Around 20,778 individuals belonging to Gen Z moved to South Carolina’s capital city in 2022, making up 15.11% of the city population.
8. Gainesville, Florida
Gen Zers Moving as a Percentage of the Total Population: 15.40%
Number of Gen Zers Who Moved in: 22,262
Gainesville is a city in northern Florida. Gainesville witnessed an increase in its population by 22,262 Gen Z individuals in 2022, which amounts to 15.4% of its population. This migration has led to Gen Zers making up almost 35% of Gainesville's resident citizens. Gainesville provides many attractive job opportunities for Gen Zers to excel in their careers.
7. Berkeley, California
Gen Zers Moving as a Percentage of the Total Population: 15.84%
Number of Gen Zers Who Moved in: 18,699
Berkeley, a city on the east side of San Francisco Bay, is attracting a wave of young adults, particularly Gen Z. This trend is likely due in part to the city's world-famous University of California, Berkeley, which draws a large international student population. Berkeley ranked highest for Gen Z movers from abroad, with over 13% (2,466 people) coming from other countries. In total, 18,699 Gen Z residents moved to the city in 2022.
6. Tallahassee, Florida
Gen Zers Moving as a Percentage of the Total Population: 17.37%
Number of Gen Zers Who Moved in: 34,570
Tallahassee is the state capital of Florida. Over 34,000 people moved to Tallahassee in 2022, making it secure the sixth position on our list of the most popular cities among Gen Zers.
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Disclosure: None. Top 15 Cities Where Gen Z is Moving in the US is originally published on Insider Monkey.
