Gen Z and the City: A Love Story

Gen Z and the City: A Love Story

As many older generations—including millennials, Gen Xers, and baby boomers—fled large urban centers during the pandemic in search of sunnier skies and lower costs of living, the youngest adults, those aged 18 to 24, chose to head in the opposite direction, flocking instead to major cities in record numbers. An analysis of the 2021 American Community Survey by Today's Homeowner reveals that cities like New York, Los Angeles, Chicago, Houston, and Philadelphia saw net migration increases among Gen Z, even as all other generations experienced declines.

New York City, in particular, emerged as a surprising destination. While the city witnessed an exodus of nearly 96,600 millennials, it gained over 3,000 Gen Z residents—the largest net increase across any age group, according to the report. Other urban areas such as Washington D.C., Columbia, and Boston also reported significant gains, each adding over 10,000 members of Gen Z.

Despite Florida being the overall most popular state for migration, Gen Z opted to leave, with an outflux of 8,000 young adults, unlike previous generations, which continued to move in. Connecticut faced a similar trend, experiencing a net loss of 5,000 Gen Z residents, even as older generations increased their presence.

When it comes to preferred locations, Southern states such as Florida, Texas, North Carolina, Arizona, and South Carolina typically top the list for other generations. However, Gen Z's preferences lean northward, favoring states like Massachusetts and the District of Columbia.

While media narratives often highlight the migration out of New York City, the truth is that Gen Z constitutes the largest demographic of new arrivals. Over 42% of movers to the city between 2021 and 2022 were Gen Zers, compared to 39% millennials and smaller portions of Gen Xers and boomers. This trend indicates a robust appeal of urban life for younger individuals seeking career opportunities and the vibrant culture urban centers offer.

Interestingly, many of those leaving New York City appear to be wealthier and older, establishing residences in states with lower or no income tax while maintaining a pied-à-terre in the city. This bi-state phenomenon is prevalent among many Tri-State area residents who own properties in places like Connecticut or New Jersey, as well as further afield.

Despite losing nearly 78,000 residents in 2023, a decrease from 126,000 in 2022, the future of urban areas, particularly New York, seems promising. For many, the city's allure—driven by finance, technology, the arts, and culture—continues to thrive. Ultimately, the vibrance and diversity of a city are often defined by the generations that follow, and for Gen Z, the big city still holds a special charm.

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