Some Gen Zers are taking advantage of low housing prices in states like Florida and Texas. (iStock)
Gen Z migration habits show preference for warmer states, even if moving there means paying higher rent, Zillow report showed that.
The three states with the largest influx of Gen Z in 2022 were Texas, California, and Florida. Overall, California saw the largest exodus, with nearly 215,000 residents displaced. Still, 44,000 Gen Zers moved to the state, according to Zillow. Texas had the largest influx of Gen Z people, exceeding California and Florida, with a net increase of over 76,000.
Other states where Gen Z most frequently moved include North Carolina, Washington, Colorado, Virginia, Illinois, Georgia, and Arizona.
“Compared to all interstate migrants, Gen Z adults who moved to California, Washington, Colorado, or Virginia were more likely to have a four-year college degree and have served in the military. They’re more likely to work in technology or ACS. The data shows that,” said Edward Burchik, chief population scientist at Zillow. “Gen Z immigrants are more likely to be attracted to job opportunities in these states, despite higher housing costs.”
“They may also be at a stage in life where they can be flexible about their standard of living while starting a career,” Bartik continued.
Zillow found that the majority of young immigrants are choosing to rent. In some states, this meant paying higher rent than the national average. The average rental price in California is $1,856, in Washington state $1,592, and in Virginia $1,440. The national average in this country is just $1,300.
If you’re considering buying a home in today’s market, visit Credible to explore your mortgage options, compare interest rates and lenders, and receive a mortgage pre-approval letter in minutes .
Homebuyers considering buying a smaller home or a fixer-upper to combat rising home prices.
New England had the lowest net immigration.
According to a report from Zillow, Gen Zers were less likely to move in rural areas and states with colder climates.
Michigan was the only state with more Gen Z out-of-state moves than within the state, with 2,858 Gen Z residents moving out of the state. Maryland and Idaho also had the lowest net immigration. New England is cold and sparsely populated, making it a less desirable region for young people. Vermont, Maine, New Hampshire, and Rhode Island had few Gen Z immigrants.
In some states, Gen Z overlaps with other generations. Few Gen Zers moved to Maryland, and even more from other generations. Overall, the state experienced a net negative migration of 36,632 people, meaning there were more people moving out than moving in.
Florida was also a popular state for moving companies in general. The state was one of the top states for Gen Z people looking to move, and it was also a top state for the general population.
If you think you’re ready to consider a mortgage, consider using Credible, which makes it easy to compare interest rates from multiple lenders in minutes.
15% of Americans have co-purchased a home with a non-romantic partner, and many more are considering it
Home prices are falling in certain states
While home prices remain high across the country, a variety of factors are causing housing costs to fall in certain states. Condo prices are declining in many Florida markets, largely due to rising homeowner’s insurance premiums. Redfin reported.
In Jacksonville, average condo prices fell about 7% in January from a year ago. The same was true in Miami, where condo prices fell 3% year over year. HOA and maintenance fees are also deterring buyers, forcing sellers to lower the prices of the condos they sell.
“The cost of condos is shocking,” said Juan Castro, a Redfin Premier agent in Orlando. “A condo that used to cost $400 a month in maintenance fees may now cost him $700 in maintenance fees. This is forcing buyers to rethink their plans.”
Outside of Florida, home prices in Jackson, Mississippi, will decline at the end of 2023, according to a study. Business Insider Analysis National Association of Realtors (NAR) data. In Jackson, prices were down 14.1% year over year.
In Cleveland, Ohio, home prices also fell by 8.6%. The average price in Cleveland was $190,700 at the end of 2023, and rose to $236,700 in the third quarter of 2023.
If you want to take advantage of low home prices in your area, Credible allows you to view multiple mortgage lenders within minutes and offer personalized interest rates without affecting your credit. .
#1 city for first-time homebuyers and other top U.S. housing markets
Have a finance-related question but don’t know who to ask? Email it to your trusted money expert. Moneyexpert@credible.com Your questions may be answered in Credible’s Money Expert column.
