Gen Z Migration from San Francisco to Texas and Florida; ‘Welcomer Cities’ Become Emerging Tech Hubs

(SeaPRwire) –   From the mid-2000s to the late 2010s, San Francisco was a major draw for recent graduates, largely fueled by the Web 2.0 era and the mobile technology surge. It was perceived as a desirable city offering high-paying jobs and an appealing West Coast lifestyle.

However, in recent years, younger professionals have been leaving San Francisco for more affordable cities that also provide a better work-life balance. This trend began with an exodus during the pandemic, as individuals relocated to be closer to family or to pursue different lifestyles. Subsequently, there was a steady migration towards Texas and Florida, where job opportunities were abundant and rental costs were more manageable. A survey conducted by the global architecture firm Gensler indicated that nearly half of San Francisco’s young, childless adults were considering a move.

A new report from the commercial real estate and investment management firm JLL highlights a third phase in San Francisco’s migration narrative, with younger generations now relocating to “welcomer cities” such as Nashville and Orlando.

JLL identifies Nashville and Orlando as “welcomer” cities because they continue to offer significant corporate job prospects while remaining more affordable than major metropolitan areas.

Travis McCready, head of industries, leasing advisory at JLL, explained that “Specifically, Nashville’s outsized cultural presence and Orlando’s favorable tax policy make them powerful magnets for talent.”

McCready further noted that “welcomer” cities, in general, have experienced a net migration rate of 5.2% over the past three years, whereas “anchor” cities like New York and the Bay Area saw migration growth of only 0.6% during the same period.

According to JLL, which monitors talent migration, office market dynamics, and corporate investment across 135 global cities, this trend signifies that “welcomer” cities like Nashville and Orlando are now serious contenders in the innovation economy.

Will “welcomer” cities stick?

In recent years, Gen Z has been increasingly drawn to more affordable cities as a strategy to cope with the rising cost of living. Beyond Texas and Florida, many have moved to the Midwest, where housing costs are approximately 30% lower than on the coasts.

A 2025 analysis by ConsumerAffairs, utilizing data from the U.S. Census Bureau and the Federal Financial Institutions Examination Council (FFIEC), found that seven of the top 10 most accessible metropolitan areas for young homeowners are located in the Midwest. Unsurprisingly, California was predominant among the least affordable metropolitan areas for Gen Z.

A cost-of-living comparison by Apartments.com reveals that the cost of living in San Francisco is 80.6% higher than in Orlando, with housing prices being 226.2% more expensive. In comparison to Nashville, San Francisco’s cost of living is 66.3% higher, and housing is nearly 150% more costly.

McCready stated, “The pull factors that drew people to affordability- and lifestyle-oriented cities [like Nashville and Orlando] are not likely to disappear, and people have built lives, bought homes, and put down roots in these markets.”

Corporate relocation trends also contribute to understanding why younger individuals are moving. In 2024, Oracle announced its intention to establish its “world headquarters” in Nashville, committing $1.2 billion in capital investment over ten years and planning to create 8,500 jobs in the region, with support from Tennessee state leaders who offered a $65 million economic grant. (However, recent reports suggest Oracle is facing some challenges in attracting workers to its office.)

Starbucks also recently announced plans to open a corporate hub in Nashville, which is expected to span 250,000 square feet and accommodate up to 2,000 employees, according to CoStar.

Starbucks COO Mike Grams commented in a statement, “With these growth plans, we see Nashville, Tennessee, as an ideal location to open an office and establish a more strategic presence in the Southeast region of the U.S.”

In Orlando, Travel + Leisure decided to relocate its global headquarters downtown, a move McCready described as “a signal worth paying attention to.” Boston-based cybersecurity firm SimSpace also moved its headquarters to Orlando this year, and global banking software company Temenos, AMD, and Charles Schwab have all announced expansions in Orlando over the past couple of years.

Despite these shifts, it does not imply that cities like San Francisco or New York are declining. It simply means they are facing increased competition from mid-size markets.

McCready observed, “What we are seeing in established hubs like New York and the Bay Area is a recovery, but it’s highly selective. Demand is concentrating in places and spaces with high degrees of accessibility, visibility, and access to amenities. And the supply in those markets is genuinely constraining: Only about 9% of office space in the Bay Area and major anchor cities was built after 2020.”

He added, “So even companies that want to consolidate in San Francisco or New York are competing for a very thin slice of truly desirable space.”

The office market math

For companies considering relocation, the financial data from emerging innovation hubs like Orlando or Nashville presents a compelling case. Nashville ranked among the top five U.S. markets for absorption-to-delivery ratios in 2025, with 35% of new supply being absorbed last year, alongside New York, Charlotte, Seattle, and Phoenix. Class A rents are priced at $43.52 per square foot, which is significantly lower than rates in large cities, yet the available space is described by McCready as “genuinely competitive.”

Orlando’s vacancy rate of 15.3% is considerably lower than the national average of 22.4%, and the market is experiencing consistent demand for high-quality, amenity-rich spaces. This contrasts with the Bay Area, where only approximately 9% of the total office inventory was constructed after 2020, and prime rents average $1,296 per square meter. According to JLL’s data, Class A+ rents in a “Welcomer” city (such as Orlando or Nashville) average $627 per square meter, which is roughly half that amount.

McCready stated, “You are competing for very little space against very deep-pocketed incumbents” in San Francisco. “Emerging hubs offer something increasingly rare: optionality. More modern inventory, more competitive rents, and—critically—talent pools that are growing, not just circulating.”