Texas is the No. 1 destination for Gen Zers on the move, study says

by the numbers

According to a new report that identifies the Top 10 states to which Gen Zers are moving, Texas was the runaway winner. Photo via Getty Images

A new population analysis by real estate marketplace Zillow has pegged the Lone Star State as the No. 1 destination for adults born between 1996 and 2004 – also known as Gen Z.

Using data from the 2022 U.S. Census Bureau, the report identifies the Top 10 states to which Gen Zers are moving, and Texas was the runaway winner – far outranking No. 2 destination, California, with 76,805 Gen Z movers, versus California's 43,913.

Reasons for moving vary, but the report says young adults from 18 to 24 years old may prefer to live in states with high performing job markets, especially in a place like San Antonio where one of the nation's top employers resides. San Antonio is also a great place for remote work, according to estimations by Forbes.

Favorable weather also may play a factor in the high migration of Gen Z'ers, the report suggests. Texas' mostly year-round sunshine makes it more attractive to younger crowds who are looking for fun activities around the state, not to mention the advantageous impact on dating opportunities.

Other top states with high influx of Gen Z movers include Washington (No. 5), which added over 33,500 Gen Z movers in 2022, and Colorado (No. 6) with less than 31,000 new Gen Z residents.

Their least favorite destination was Michigan, and the Northeast also ranked poorly, with four New England states – Vermont, Rhode Island, New Hampshire, and Maine – all in the bottom 10.

State with a high cost-of-living like Washington, Colorado, and Virginia (No. 7) are places where young adults are more likely to have a bachelor's degree, work in tech, or serve in the military, according to Zillow principal population scientist Edward Berchick.

However, becoming a homeowner is much more difficult, as the report found 77 percent of the Gen Z workers in these states are renters.

"Gen Z movers are likely drawn to the job opportunities in these states, despite the higher costs of housing," Berchick explains. "They may also be in a stage of life where they're willing and able to be flexible in their standards of living while starting their careers."

The top 10 states for Gen Z movers are:

  • No. 1 – Texas
  • No. 2 – California
  • No. 3 – Florida
  • No. 4 – North Carolina
  • No. 5 – Washington
  • No. 6 – Colorado
  • No. 7 – Virginia
  • No. 8 – Illinois
  • No. 9 – Georgia
  • No. 10 – Arizona

The full report can be found on zillow.mediaroom.com.

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This article originally ran on CultureMap.

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Everyone wants to live here. Photo by Kevin Hernandez on Unsplash

Houston could be 2nd biggest metro in U.S. by year 2100, new report says

WELCOME, NEWSTONIANS

Start spreading the news: Houston will eclipse New York City as the 2nd biggest metro area by the year 2100, a new report predicts.

An analysis by moving services site moveBuddha published June 22 says Houston's population could swell to 31.38 million people in the next 77 years.

Based on current population and migration trends, in fact, America’s three biggest metropolitan areas by 2100 will be Dallas-Fort Worth (No. 1), Houston (No. 2), and Austin (No. 3), replacing New York, Los Angeles, and Chicago as the country’s most populous metros, the report predicts.

Dallas-Fort Worth's population is estimated to grow to 33.91 million, and Austin's is projected to jump to 22.29 million.

"The future of America may lie in Texas," the report's author says.

The latest data from the U.S. Census Bureau says Houston-The Woodlands-Sugar Land is currently the No. 5 biggest metro in the country with a population of more than 7.2 million and a 10-year growth rate of about 20 percent.

Houston-The Woodlands-Sugar Land had the second highest numeric increase in population between 2021 and 2022 of any U.S. metro (124,281 residents), following Dallas-Fort Worth-Arlington (170,396 residents), according to the Census Bureau.

There are some risks to continued population booms, including the effects of climate change, moveBuddha points out. While heat will be a major issue, there are much more dangerous possibilities.

"The bigger threat may be more destructive hurricanes from off the Gulf of Mexico," the report's author says. "Hurricane Harvey devastated Houston in 2017, and major storms like that could become more common. A historic flood also nailed the city in 2019. Planning for a future of these climate-induced threats will be critical for Houston."

The study also comes with an obvious caveat: no one is sure what the future looks like in terms of population growth. Academics, scientists, and futurists alike haven't been able to agree on population predictions. Climate change isn't just a risk for Houston, but for the entire world, the report reminds.

"According to one GDP projection through 2099, over three-quarters of U.S. counties will suffer economically because of climate damage," the report says. "That could be from everything from heat-related deaths to sea-level rise to increased natural disasters... But if global warming is held in check, Texas may be America’s haven in 2100. New technologies may help us adapt to extreme weather and heat."

According to the report, the top 10 largest metros and their populations by 2100 will be:

  • No. 1 – Dallas-Fort Worth (33,907,275)
  • No. 2 – Houston (31,384,122)
  • No. 3 – Austin (22,293,980)
  • No. 4 – Phoenix (22,271,212)
  • No. 5 – New York City (20,810,467)
  • No. 6 – Atlanta (18,370,497)
  • No. 7 – Los Angeles (15,502,798)
  • No. 8 – Washington-Arlington, D.C.-Virginia (14,972,830)
  • No. 9 – Orlando (14,172,727)
  • No. 10 – Miami (13,779,843)
These projections were calculated using census data from 2010 and 2020, using annual compound and 10-year population growth rates for U.S. metro areas with over 250,000 people. The study then hypothesized the annual compound growth rates between 2020 and 2100 to find 2100's estimated population numbers for the same cities.The full report and its methodology can be found on movebuddha.com.

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This article originally ran on CultureMap.

Many Americans relocated to Texas’ Sunbelt region in 2022. Photo by GeoJango Maps on Unsplash

Most movers in 2022 set Houston as their destination, says new report

moving on in

Where did the most Americans relocate to in 2022? The answer, according to a new report from Penske Truck Rental, is Houston.

Many Americans relocated to Texas’ Sunbelt region in 2022, according to Penske's latest annual “Top Moving Destinations” report. This is Houston’s second consecutive year as the No. 1 moving destination, while Dallas (No. 7), San Antonio (No. 9), and Austin (No. 10) also appeared within the top 10. Based on the 2021 report, Dallas’ destination ranking remained the same, while San Antonio dropped further down from last year to No. 6, and Austin only fell one place.

Penske has been reporting on the migration patterns of Americans for 13 years, using data from the U.S. cities with the most inbound one-way consumer rentals throughout the year. The U.S. Census Bureau estimated 23.7 million Americans moved in 2022, which is about four percent more than in 2021.

In the report, Penske Senior Vice President Kevin Malloy said it’s “always exciting” to find out where the company’s customers are moving with each new release.

“We understand just how hectic the moving experience can be and pride ourselves on putting the consumer first throughout the rental experience,” he said.

Penske’s top 10 moving destinations in 2022 are:

  • No. 1 – Houston
  • No. 2 – Las Vegas
  • No. 3 – Orlando, Florida
  • No. 4 – Phoenix
  • No. 5 – Atlanta
  • No. 6 – Charlotte, North Carolina
  • No. 7 – Dallas
  • No. 8 – Jacksonville, Florida
  • No. 9 – San Antonio
  • No. 10 – Austin

With the arrival of National Moving Month in May, Penske decided to commemorate the month by releasing four specially-curated playlists on Spotify. Each playlist is under an hour and a half long, and has its own unique “vibe” to describe what it feels like to move. They also come with apt names: “Pack It Up,” “Moving on Mix,” “Forwarding Address,” and “Make This House, Home.”

The song choices are intended to “help people look forward to the journey ahead,” according to Malloy.

More information about Penske's report can be found on pensketruckrental.com.

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This article originally ran on CultureMap.

So this is how the other half lives. Photo by Austin Distel on Unsplash

Here's the income it takes to live among the top 1 percent in Texas

isn't that rich?

Wondering how "the other half lives" is so outdated, especially when we we can easily peek into what life is like for the "one percent." A new report from SmartAsset reveals how much money you'll need to be considered the top one percent in Texas.

With two Houston suburbs landing among the richest cities in Texas in a recent report, it's obvious that the Lone Star State is dotted with pockets of wealth. But how much do you actually need in your pocket to have a top one percent income?

In Texas, an annual income of $641,400 will land you at the top, while $258,400 only gets you to the top five percent.

To come up with those numbers, SmartAsset analyzed 2019 data from IRS tax units and adjusted the figures to 2022 dollars using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the Bureau of Labor Statistics.

For comparison, "the average American household earns a median income of under $70,000," according to the study. And per the latest figures from the U. S. Census Bureau, the median household income in Texas (in 2021 dollars) is $67,321. That leaves plenty of us with a long way to go in our financial striving.

So now we know how we compare to our neighbors, but where does that put the affluent population of Texas in comparison with other states?

For starters, Texas claimed the 10th highest income required to reach top income levels.

The one percent income threshold is hardest to meet in Connecticut ($955,000), Massachusetts ($900,000), New Jersey ($825,965), New York ($817,796), and California ($805,519). Only these five states have thresholds that exceed $800,00, and it's a pretty steep drop down to Texas ($641,400) in 10th place.

The five states where it's easiest to attain one percent status (even though that doesn't seem like good news) are Kentucky ($447,300), Arkansas ($446,276), New Mexico ($418,970), Mississippi ($383,128), and West Virginia ($374,712).

The SmartAsset report also included average tax rates for top earners in each state. There was surprisingly little variance in the top 10 states, with Washington state having the lowest rate (25.02%) and Connecticut collecting the highest tax rate (27.77%).

Texas was in the middle of the pack with a tax rate of 25.71% levied on top one percent incomes.

The 10 states with the highest earnings required to be a one-percenter and their tax rates are:

  1. Connecticut ($955.3K, Tax rate 27.77%)
  2. Massachusetts ($896.9K, Tax rate 26.4%)
  3. New Jersey ($826K, Tax rate 27.36%)
  4. New York ($817.8K, Tax rate 27.48%)
  5. California ($805.5K, Tax rate 26.78%)
  6. Washington ($736.1K, Tax rate 25.02%)
  7. Colorado ($682.9K, Tax rate 25.24%)
  8. Florida ($678.8K, Tax rate 25.23%)
  9. Illinois ($666.2K, Tax rate 26.23%)
  10. Texas ($641.4K, Tax rate 25.71%)
If you're on your way to being a top earner and want to do a deeper dive on those numbers, you can view the full report on the SmartAsset website.

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This article originally ran on CultureMap.

Turns out Austin-born millennials haven't moved too far. Photo by Getty Images

Houston named No. 1 destination for millennials on the move from this Texas city

putting down roots

For the most part, Austin millennials have stayed close to home after entering adulthood, a new report indicates.

At age 26, nearly 70 percent of people who were born from 1984 to 1992 and raised in Austin remained there, according to the report. That leaves more than 30 percent who moved elsewhere.

Data compiled by researchers at Harvard University and the U.S. Census Bureau pinpoints Houston as the No. 1 target for millennials who lived in Austin at age 16 and grew up here but lived somewhere else in the U.S. at age 26. The Bayou City attracted 3.9 percent of millennial movers born from 1984 to 1992 (a large subset of the millennial generation) who grew up in Austin.

Bayou City was followed by San Antonio (3.1 percent), Dallas (2.8 percent), Killeen (1.3 percent), and Fort Worth (1.2 percent). These were the only Texas cities to surpass the 1 percent mark for the share of millennials born from 1984 to 1992 who had moved away from Austin. In 2022, these millennials are celebrating birthdays from 30 to 38.

These are the top five out-of-state destinations for Austin-raised, on-the-move millennials:

  • Los Angeles — 0.86 percent
  • New York City — 0.79 percent
  • Denver — 0.64 percent
  • Seattle — 0.50 percent
  • Washington, D.C. — 0.43 percent

The list of Texas places that sent millennials to Austin looks very similar to the list of places that gained millennials from Austin. The top five are Houston (6.7 percent of movers born from 1984 to 1992 who came to Austin), Dallas and San Antonio (3.7 percent each), Fort Worth (2 percent), and Brownsville (1.6 percent).

Los Angeles is the only out-of-state destination that broke the 1 percent barrier for millennials who relocated to Austin (1.6 percent), followed by Chicago (0.97 percent), Washington, D.C. (0.63 percent), Detroit (0.51 percent), and Boston and New York City (0.49 percent each).

The geographic regions cited in the report are not metro areas but, instead, are commuting zones. A commuting zone represents a collection of counties that define an area’s labor market.

Researchers relied on federal tax, population, and housing data to assemble the report.

The statistics for Austin largely align with nationwide trends. The researchers say 80 percent of young-adult movers in the U.S. had relocated less than 100 miles from where they grew up and 90 percent had moved less than 500 miles.

“The majority of young adults stay close to home,” the researchers explain. “Average migration distances are shorter for Black and Hispanic young adults than for White and Asian young adults. Average migration distances are also shorter for those with lower levels of parental income.”

“For many individuals,” the researchers conclude, “the ‘radius of economic opportunity’ is quite narrow.”

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This article originally ran on CultureMap.

A recent report finds that the rate of new Houston startups has popped up significantly. Photo by Zview/Getty Images

Report: Houston sees huge jump in new businesses amid the pandemic

by the numbers

By one measure, Houston could be considered the startup capital of Texas.

A new study by personal finance website LendingTree shows the Houston metro area experienced a 37.4 percent jump in new-business applications from 2019 to 2020. That was the highest growth rate among Texas’ six biggest metro areas and the 20th highest growth rate among the 100 U.S. metro areas with the most new-business applications in 2020.

In 2019, the Houston area racked up 85,998 new-business applications, according to U.S. Census Bureau data cited by LendingTree. A year later, the number of applications in the region soared to 118,183. The data measures applications for nine-digit employer identification numbers (EINs), which the IRS uses to track businesses for tax purposes. An EIN is similar to a person’s Social Security number.

“The pandemic has created so much financial chaos for so many people, and that uncertainty surely spurred many Americans to take the plunge,” says Matt Schulz, chief credit analyst at LendingTree.

“Some folks did it out of necessity because of income or job losses,” he adds. “Some folks did it to feel more secure, as the idea of relying on one source of income just didn’t make sense anymore for a lot of people. Others likely did it because they’d wanted to for years but never felt the time was right.”

Across the U.S., the retail sector witnessed the heftiest increase (59.7 percent) in new-business applications from 2019 to 2020.

“So many companies have made it so easy to sell online that people feel good about taking the plunge,” Schulz says. “Setting up an online store is generally simpler, quicker and less expensive than ever, so the barriers to entry that once scared potential entrepreneurs away from opening a new store aren’t the obstacles that they once were.”

Memphis, Tennessee, topped the LendingTree list. The metro area saw a 77.9 rise in new-business applications from 2019 to 2020.

Elsewhere in Texas:

  • Dallas ranked 37th nationally and second in Texas, with a 29 percent increase in new-business applications.
  • San Antonio ranked 62nd nationally and third in Texas, with an 18 percent increase in new-business applications.
  • McAllen ranked 77th nationally and fourth in Texas, with a 13.3 percent increase in new-business applications.
  • Austin ranked 78th nationally and fifth in Texas, with a 13.2 percent increase in new-business applications.
  • El Paso ranked 79th nationally and sixth in Texas, with an 11.9 percent increase in new-business applications.
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Rice University's edtech company receives $90M to lead NSF research hub

major collaboration

An educational technology company based out of Rice University has received $90 million to create and lead a research and development hub for inclusive learning and education research. It's the largest research award in the history of the university.

OpenStax received the grant funding from the U.S. National Science Foundation for a five-year project create the R&D hub called SafeInsights, which "will enable extensive, long-term research on the predictors of effective learning while protecting student privacy," reads a news release from Rice. It's the NSF's largest single investment commitment to national sale education R&D infrastructure.

“We are thrilled to announce an investment of $90 million in SafeInsights, marking a significant step forward in our commitment to advancing scientific research in STEM education,” NSF Director Sethuraman Panchanathan says in the release. “There is an urgent need for research-informed strategies capable of transforming educational systems, empowering our nation’s workforce and propelling discoveries in the science of learning.

"By investing in cutting-edge infrastructure and fostering collaboration among researchers and educators, we are paving the way for transformative discoveries and equitable opportunities for learners across the nation.”

SafeInsights is funded through NSF’s Mid-scale Research Infrastructure-2 (Mid-scale RI-2) program and will act as a central hub for 80 partners and collaborating institutions.

“SafeInsights represents a pivotal moment for Rice University and a testament to our nation’s commitment to educational research,” Rice President Reginald DesRoches adds. “It will accelerate student learning through studies that result in more innovative, evidence-based tools and practices.”

Richard Baraniuk, who founded OpenStax and is a Rice professor, will lead SafeInsights. He says he hopes the initiative will allow progress to be made for students learning in various contexts.

“Learning is complex," Baraniuk says in the release. "Research can tackle this complexity and help get the right tools into the hands of educators and students, but to do so, we need reliable information on how students learn. Just as progress in health care research sparked stunning advances in personalized medicine, we need similar precision in education to support all students, particularly those from underrepresented and low-income backgrounds.”

OpenStax awarded $90M to lead NSF research hub for transformational learning and education researchwww.youtube.com

2 Houston startups selected by US military for geothermal projects

hot new recruits

Two clean energy companies in Houston have been recruited for geothermal projects at U.S. military installations.

Fervo Energy is exploring the potential for a geothermal energy system at Naval Air Station Fallon in Nevada.

Meanwhile, Sage Geosystems is working on an exploratory geothermal project for the Army’s Fort Bliss post in Texas. The Bliss project is the third U.S. Department of Defense geothermal initiative in the Lone Star State.

“Energy resilience for the U.S. military is essential in an increasingly digital and electric world, and we are pleased to help the U.S. Army and [the Defense Innovation Unit] to support energy resilience at Fort Bliss,” Cindy Taff, CEO of Sage, says in a news release.

A spokeswoman for Fervo declined to comment.

Andy Sabin, director of the Navy’s Geothermal Program Office, says in a military news release that previous geothermal exploration efforts indicate the Fallon facility “is ideally suited for enhanced geothermal systems to be deployed onsite.”

As for the Fort Bliss project, Michael Jones, a project director in the Army Office of Energy Initiatives, says it’ll combine geothermal technology with innovations from the oil and gas sector.

“This initiative adds to the momentum of Texas as a leader in the ‘geothermal anywhere’ revolution, leveraging the robust oil and gas industry profile in the state,” says Ken Wisian, associate director of the Environmental Division at the U.S. Bureau of Economic Geology.

The Department of Defense kicked off its geothermal initiative in September 2023. Specifically, the Army, Navy, and Defense Innovation Unit launched four exploratory geothermal projects at three U.S. military installations.

One of the three installations is the Air Force’s Joint Base San Antonio. Canada-based geothermal company Eavor is leading the San Antonio project.

Another geothermal company, Atlanta-based Teverra, was tapped for an exploratory geothermal project at the Army’s Fort Wainwright in Alaska. Teverra maintains an office in Houston.

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This article originally ran on EnergyCapital.

Houston investor calls for all angels to move the ecosystem forward

houston innovators podcast episode 233

One of the biggest components of a well-functioning startup ecosystem is inarguably access to capital, and Mitra Miller is dedicated to enhancing education around investment and growing Houston's investor base.

As vice president and board member of the Houston Angel Network, the oldest angel network in Texas and one of the most active angel networks in the country, Miller strives to provide guidance to new and emerging angel investors as well as founders seeking to raise money from them.

"Most founders have no idea or understanding of how investors think — we are not an ATM," Miller says on the Houston Innovators Podcast. "We are really partners you are getting married to for the next 5, 8, 10 years — sometimes longer. We need to bring your allies in every sense of the word."



HAN, a nonprofit, provides a unique opportunity for its members, as Miller explains. The group consists of around 100 individuals from all business backgrounds, so evaluating companies together brings more than just a wealth of capital — but also a wealth of knowledge.

"What HAN provides is access to investments," Miller says, adding that members have the benefit in evaluating companies together with people from different backgrounds. "Inside a group like HAN, we have extraordinary expertise."

In addition to educating both founders and investors in the process, Miller has dedicated herself to providing opportunities for students in low-income parts of Houston to learn about the startup world. Eight years ago, she founded Eagle Investors, an organization that provides a year-long program that culminates in a group of students participating as judges for the Rice Business Plan Competition.

"They spend a year learning about innovation, entrepreneurship, and investing by meeting local investors, entrepreneurs, and service providers. They go around Houston to get to visit and ... experience all of the ecosystem," Miller says.

At RBPC, the cohort of high school students evaluate the pitches and select a company to provide a $5,000 prize.

Miller herself has been a judge at RBPC for 20 years now, and she's had a front row seat for watching Houston develop as an ecosystem. She's seen the city make real progress, but has one major call to action.

"The piece that I am most aware of that I would like to see grow is activating more accredited investors who are interested in this asset class of early-stage companies and plugging in," Miller says. "They can also invest their time and knowledge to help companies in our region grow and scale."

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