New York homes cost $832,000, so Gen Z is flocking to a city 90 miles away where they can buy nearly 3 houses for the price of one

There is no doubt that many young Americans still want to come and settle in New York but a recent Redfin analysis of Census Bureau data tells a different story. More and more Gen-Zers left the NYC than any other US metro in 2024 in a dramatic shift, posting a net outflow of 29,554 young adults. The biggest reason why Gen-Z are leaving New York is the rising housing costs, according to New York Post. The typical home in the New York metro sells for about $832,000, compared with just $309,000 in Philadelphia, according to Redfin. This means buyers heading to Philly could theoretically purchase nearly three homes for the price of one in New York.

The data shows that a whopping 9,284 Gen Zers have moved to a new city- Philadelphia- just 90 miles south of the New York metropolitan area. This has made Philadelphia country’s second-most-popular migration route for the generation, behind only trading Los Angeles for nearby Riverside, California.

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Why is the young generation shifting out of NYC?

If we look closely at the migration pattern it shows that young Americans aren’t necessarily cutting ties with their existing regions as they hunt for less expensive housing and better job prospects. But they are choosing places that allow them to remain within reach of family, friends and professional networks.

“Younger adults are gravitating toward cities where they can launch careers and their social lives, while millennials are more focused on places where a paycheck stretches further and buying a home is attainable,” Redfin principal economist Sheharyar Bokhari said in the report.

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“But young Americans aren’t fleeing expensive cities for the cheapest place they can find: Most are making relatively short moves, suggesting they want a better job or lower cost of living without giving up their existing networks.”

More and more Gen-Z are moving from Los Angeles to Riverside, with 10,261 people making the roughly 60-mile shift. The New York-to-Philadelphia route came next, followed by Los Angeles to San Diego, which attracted 9,237 movers.

New York also experienced the largest millennial exodus of any metro, recording a net loss of 42,698 members of the generation. Los Angeles followed with a net millennial outflow of 31,107, while Miami lost 21,373. “Gen Zers are chasing opportunity, while millennials are chasing space,” Bokhari said.

Millennials favored metros where larger homes remain relatively attainable. Houston led the pack with a net millennial inflow of 16,365, followed by Dallas, Baltimore, Las Vegas and Atlanta. All five metros had median home-sale prices below $450,000. The analysis used the Census Bureau’s 2024 American Community Survey. It defined adult Gen Zers as those ages 19 to 27 and millennials as those ages 28 to 43.

FAQs

1. Why are Gen Z Americans leaving New York City?

Rising housing costs are a major factor. The typical home in the New York metro costs about $832,000, compared with around $309,000 in Philadelphia. This means you can buy three houses in Philapdelphia.

2. Where are Gen Zers moving from New York?

Philadelphia is the biggest destination in the New York-to-Philadelphia migration route. According to the Redfin analysis, 9,284 Gen Z adults made the roughly 90-mile move from the New York metropolitan area to Philadelphia in 2024.

3. Are Gen Zers moving far away from their hometowns?

Not necessarily. The migration data shows that many young Americans are making relatively short moves. They are seeking lower housing costs and better job opportunities while staying close to family, friends and professional networks.

4. Which US city saw the largest Gen Z migration shift?

The Los Angeles-to-Riverside route recorded the largest movement, with 10,261 Gen Z adults making the roughly 60-mile move. New York to Philadelphia ranked second, followed by Los Angeles to San Diego with 9,237 movers.

5. Are millennials also leaving New York City?

Yes. New York recorded the largest net millennial outflow among US metros, losing 42,698 millennials in 2024. Redfin's analysis found that millennials tended to favor metros such as Houston, Dallas, Baltimore, Las Vegas and Atlanta, where median home prices were below $450,000.