California’s Demographic Shifts: A Closer Look

Erika Lee, 30, is representative of recent demographic changes in California. She grew up in Diamond Bar, attended USC, and began her career in Southern California. However, she transitioned to the cryptocurrency field and moved from West Hollywood to San Francisco in February for a job at an AI insurance startup.

“I didn’t expect to like it so much,” Lee expressed about her San Francisco move. “I thought it would be a good opportunity in an industry that is thriving.”

Generational Movement Trends

Discussions about California’s demographic changes often focus on the exodus of residents seeking lower costs and taxes. Yet, new data reveal that movements within and out of California are significantly influenced by age and income level.

For instance, older generations such as baby boomers tend to move to places like Arizona, Nevada, and Texas. Younger Californians face more constraints in moving. When they do, popular destinations include Oregon, Utah, and Colorado.

Meanwhile, the Bay Area and Fresno are attracting young Angelenos like Lee. Fresno offers a burgeoning job market and more affordable housing compared to coastal cities. Mayor Jerry Dyer noted significant migration from the Bay Area and Los Angeles to Fresno starting in 2021. The influx of younger demographics is lowering the city’s average resident age to 31, below the state average.

Fresno: A Surprising Destination

Fresno’s cost of living remains relatively low, with average home prices around $400,000. The city lacks traffic congestion and is centrally located near natural parks. New residents under 40 have been moving downtown, an unprecedented trend in decades.

Concerns have emerged about newcomers from the Bay Area influencing Fresno’s politics, described as moderate by Mayor Dyer. The demand for housing due to this influx is raising rents and prices, potentially affecting affordability for long-time residents.

Ex-Angelenos in Fresno have shared their views online. Many highlight affordable living and the noticeable different pace compared to Los Angeles. As one Reddit commenter shared, they bought a house they would never afford in Southern California.

U-Haul Data Insights

Data from U-Haul provides insight into migration patterns within and out of California. It shows older residents leaving, and younger people moving within the state, aiming to settle there.

For those leaving LA, favorite destinations aligned by age include Las Vegas, Palm Springs, and Arizona cities like Lake Havasu and Phoenix. Baby boomers and Gen Xers typically head to states like Arizona, Nevada, and Texas. Millennials often stay or move within the state, choosing destinations like San Francisco and Bakersfield if they leave. Gen Z tends to mimic millennial destination choices.

These shifts highlight younger generations’ preference to remain in California, even as others leave.

Navigating New Locations

Erika Lee is among younger Angelenos choosing San Francisco over other cities. As she settled into her new role, she noticed concerns from Bay Area residents about the AI industry’s effects on living costs. She lives in a studio and is uncertain about buying a home in San Francisco.

Despite preferring LA’s diversity and food scene, Lee recognizes Southern California’s relative affordability. She works long hours in a 9-9-6 schedule, leaving limited time to explore San Francisco’s cultural offerings. She views this intense work period as temporary and plans to decide later if she’ll move closer to family later.

California: A Mixed Destination

Nationally, California’s appeal shifts with age. Boomers and Gen Xers see other states as prime destinations, leaving California low on their lists. Conversely, millennials rank it third and Gen Z places it second, below Texas.

The net domestic out-migration from California continues, with around 215,000 more people exiting than arriving from July 2024 to 2025, according to the State Department of Finance.

Los Angeles County reflects this trend, losing nearly 100,000 more residents to other states in 2025. However, in San Francisco County, net migration remains close to zero. Similar patterns appear in Kern and Fresno counties, areas becoming home to young Angelenos.

California’s population is slowly growing again, but it has yet to reach pre-pandemic levels. This occurs while more Californians continue to explore new states and destinations within their own borders.