Erika Lee, a 30-year-old who grew up in Diamond Bar and attended USC, kicked off her career in Southern California. Recently, she transitioned into the cryptocurrency industry and moved from West Hollywood to San Francisco for a job at an AI insurance startup. “I didn’t expect to like it so much,” Lee shared about her move to San Francisco. She saw it as a great opportunity in a thriving sector.
Lee’s story illustrates a generational divide in California’s demographic changes. While much attention focuses on the ‘California exodus,’ data reveals varied migration patterns linked to age and income levels. Older generations tend to relocate to states like Arizona, Nevada, and Texas. For younger Californians, moving is challenging, and they often end up in places like Oregon, Utah, and Colorado.
The Shift within California
Young professionals like Lee often stay in California but move to areas like the Bay Area because of the AI industry boom. Alongside San Francisco, Fresno emerges as a surprising destination due to affordable living costs and strong job prospects. Mayor Jerry Dyer notes significant relocations to Fresno from both the Bay Area and Los Angeles since 2021. Initially, families moved there, continuing remote work, followed by young individuals moving downtown. This influx has rejuvenated the average age of Fresno’s residents to 31.
Despite Fresno’s growing popularity, Mayor Dyer voices concerns about new arrivals impacting the local political balance in what he describes as a “moderate” city. The increasing housing demand, brought by newcomers, has driven up rents and home prices, potentially affecting longtime residents’ affordability.
“I ended up getting married, having kids, and purchasing a house here. You couldn’t do that in Southern California without spending over $1 million,” shared a former Los Angeles resident on Reddit about the economic appeal of Fresno.
Migrations by Generation
A U-Haul study highlights a generational gap in migration: older residents are leaving California, whereas younger ones are shifting internally. For baby boomers departing L.A., top destinations include Arizona, Nevada, Texas, Oregon, and Utah. Gen Xers show a similar pattern, favoring states like Arizona and Nevada. Millennials mostly relocate within California, with some choosing Texas, Oregon, Tennessee, Colorado, and Utah when leaving. Their preferred metros are San Francisco, Bakersfield, Sacramento, and Riverside. Gen Z mirrors Millennials but adds Houston and Dallas to their list of favored areas.
A Personal Account
Erika Lee is among those who selected San Francisco. She recognizes the concerns of non-AI workers about the industry’s impact on living costs. Despite enjoying San Francisco, she misses the food and diversity of L.A., which offers relatively lower costs, though both face affordability challenges. Lee adheres to a demanding work schedule known as “9-9-6,” leaving little time for leisure. For her, this workload represents a temporary situation rather than a long-term goal.
California’s Appeal Varies by Age
Across the U.S., California didn’t make it into the top 10 states for arrivals from U-Haul’s data concerning Boomers and Gen Xers. This stands out, given its large population. For Millennials, California was a significant destination, ranking third behind Florida and Texas. Within Gen Z, California was second only to Texas. While California experiences net domestic out-migration, the overall exodus has lessened compared to previous years.
The state lost around 215,000 residents to other states between July 1, 2024, and July 1, 2025, as per California’s Department of Finance. Although peaking at 370,000 in 2021, the 2025 figure marked an increase from 2024. Los Angeles County saw around 100,000 more departures than arrivals in 2025, nearing its 2021 and 2022 loss levels.
In San Francisco County, domestic migration was stable, similar to Kern and Fresno counties—areas drawing young Los Angeles inhabitants, as indicated by U-Haul.
California’s total population recovered slightly over the past three years but remains below pre-pandemic levels, following a significant drop from 2020 to 2022.