Lone Star state luring young blood: Texas becomes top destination for Gen Z job seekers

Latinos in Houston Metro Area has been rapidly increasing in — Austin's job market for young professionals ranks 17th out of 150 U.S. metro areas. Wikimedia Commons

Texas has become one of the top hotspots for Gen Zers moving around the country in search of the best economic opportunities, according to a new report by StorageCafe.

To make the ranking, the site used U.S. Census data through 2022 to list the most popular destinations for domestic migration, focusing especially on the youngest adults in the U.S. Concretely, the state ranked 4th on the list, only behind Connecticut, Washington D.C. and North Carolina.

Texas has been one of the "big winners" of interstate migration in recent years, with a net gain of more than 171,000 people in 2022, according to the report. Just over 10,000 of those will be Generation Zers, people born between the late 1990s and early 2010s.

"With Texas being a highly entrepreneurial and no income tax state, Generation Z individuals with aspirations for entrepreneurship may be drawn to Texas's opportunities," the document highlights.

Young professionals may be particularly drawn to cities like Austin, which has become a prominent tech hub in recent decades as companies and venture capitalists sought a lower-cost alternative to California's Silicon Valley.

According to different ranking, Austin's job market is the 17th most attractive cities in the country for young professionals out of 150 metro areas.

"Texas is a highly entrepreneurial state with no income tax," the report highlights. Freepik

The StorageCafe's report emphasizes that the state can also be cheaper to live in than other places, such as New York.

"Texas generally offers a more affordable cost of living compared to many other states. This includes housing affordability, which is particularly attractive to Generation Z individuals who may prioritize financial considerations," it says.

According Census Bureau data, almost a quarter of the 10,000 Gen Zers that chose Texas as their new home managed to purchase a home during their first year in the state.

Another factor that may influence interstate migration is culture. With a vibrant Latino and Tex-Mex restaurant scene as well as the overall community, the Lone Star State could be the destination of choice for many young adults among second-generation Latinos in the U.S.