U-Haul midyear report shows Gen Z curbing California exodus
U-Haul's midyear 2026 report analyzes one-way moves from July 2025 to June 2026. It finds Boomers moving to the Southeast, while Gen Z drives net gains in California and New York. Millennials lead in transaction volume, accounting for over 60% of rentals alongside Gen X. Florida is the only state in the top 10 for all four generations.

*this image is generated using AI for illustrative purposes only.
U-Haul has released its midyear migration trends report for 2026, revealing distinct generational shifts in U.S. residential mobility based on one-way rental data from July 2025 through June 2026. While older generations continue to drive population growth in the Southeast, younger demographics are altering traditional out-migration patterns from high-cost states. Notably, Generation Z is contributing to a net gain in California and New York, suggesting a potential curb in the long-term exodus from these states. This shift is significant for real estate markets and urban planning in major metropolitan areas.
The analysis covers the peak summer moving season, which typically accounts for roughly half of all annual residential moves in the U.S. between Memorial Day and Labor Day weekends. U-Haul, which facilitates millions of one-way transactions annually, uses its fleet of trucks, trailers, and U-Box containers as a proxy for tracking these demographic movements. The company’s data highlights that the renter’s generation, or stage of life, is a primary determinant of destination choice.
Generational Migration Patterns
The report breaks down net-gain states by generation, showing clear divergence in preferences. Baby Boomers (born 1946-1964) are predominantly moving to the Southeast, with six of their top seven net-gain states located in this region. Arizona remains the only non-Southeastern top destination for this group. In contrast, Generation X (born 1965-1980) and Millennials (born 1981-1996) both favor Florida and Texas but diverge thereafter. Gen X continues to prefer the Southeast and Mountain West, while Millennials are scattering to California and several Midwest states, likely driven by career opportunities.
| Generation | Top Net-Gain States | Key Destination Trend |
|---|---|---|
| Baby Boomers | South Carolina, North Carolina, Florida, Arizona | Strong preference for Southeast and warm climates |
| Generation X | Florida, Texas, South Carolina, Tennessee | Focus on Southeast and Mountain West |
| Millennials | Florida, Texas, California, Ohio | Mix of Sun Belt and Midwest/Career hubs |
| Gen Z | Texas, California, New York, Illinois | Densely populated markets with entry-level jobs |
Generation Z (born 1997-2012) is gravitating toward densely populated markets with numerous colleges, entry-level jobs, and apartment access. Texas and California top their list, followed by New York, Illinois, and Colorado. This trend reflects a diverse blend of geography and politics, contrasting with the retiree-focused destinations of Boomers.
Market Share and Volume
Millennials account for the most one-way U-Haul transactions, followed closely by Generation X. Together, these two generations total more than 60% of all rentals. This dominance underscores the economic impact of working-age adults on the moving industry. Meanwhile, metro areas such as College Station, Gainesville, Lubbock, Lexington, Tallahassee, Manhattan (Kan.), Champaign, Madison, and Baton Rouge show sizeable gains among Gen X contract holders. This pattern indicates that many parents in this generation are assisting university-bound children with their moves.
Florida stands out as the only state with a top-10 net gain among all four generations. Texas ranks very high for everyone except Boomers, while Idaho appears on three generational lists. These consistent destinations highlight broad appeal across different life stages, whether for retirement, career advancement, or education.
What the Numbers Show
The data reveals a bifurcation in migration drivers: lifestyle versus opportunity. For Baby Boomers, the primary driver appears to be climate and retirement amenities, concentrating them in the Carolinas, Florida, and Arizona. For younger generations, particularly Millennials and Gen Z, the drivers are employment density and educational access, pulling them back into high-cost states like California and New York. This reversal in Gen Z trends is particularly notable, as it suggests that the push factors driving previous generations away from coastal cities may be less influential for the youngest renters, who prioritize job markets and urban infrastructure over cost-of-living considerations alone.
How will the return of Gen Z to high-cost coastal states impact housing affordability and rental vacancy rates in California and New York over the next three years?
What specific infrastructure or policy adjustments might Southeastern cities need to make to accommodate the continued influx of Baby Boomers seeking retirement amenities?
Could the divergence between Gen Z's urban preference and older generations' suburban/Sun Belt trends lead to a fragmented real estate market with distinct regional valuation drivers?



























