To Keep Gen Z in New Jersey, Crushing Taxes, Terrible Economic Policies Must Be Reversed

Generation Z may lean left when polled on their political views, but like many Americans, when they vote with their feet, they’re exiting Blue states.

States like New Jersey, New York, and California are dealing with a Gen Z exodus. High living costs are driving young residents to look for cheaper places to live. With rising housing prices, taxes, and expenses, it’s becoming harder for people to maintain a decent standard of living, causing many to leave for states with lower costs. New job growth is also being driven by Southeastern states.

Gen Z is moving significantly more than other generations. According to a study by Hire A Helper, 17% of Gen Z adults moved in 2023, which is more than twice the national average across all age groups. This percentage is notably higher compared to 11% of millennials, 5% of Gen X, and 3% of baby boomers who moved in the same year, with the overall average being 8%.

New Jersey, a historically prosperous state with a diverse economy, is grappling with an urgent affordability crisis. This crisis not only jeopardizes the well-being of residents but also compels Gen Z to seek more affordable regions. The state must turn from its highest-in-the-nation corporate tax rate, sky-high income taxes, and overregulation to create prosperity and keep Gen Z from moving.

Jersey 1st, a ‘fiscally and socially responsible organization educating, informing and advocating for the people of New Jersey’, offers a Gen Z-centric 4-pronged plan to turn the state around. This plan is designed to enhance the quality of life in the Garden State, focusing on transportation, employment, and property.

With inflation at 4.2%, sales tax rising to 6.625%, and unemployment at 4.6%, New Jersey faces a critical situation.  A 2023 United Van Lines study shows that 65% of residents are leaving the state, the highest rate in the country.  The cost of living, which has increased 2.9% annually since 2007, is now 12% above the national average, making it unaffordable for many long-time residents.

Gen Z natives of New Jersey, born between the late 1990s and early 2000s, often pursue higher education and stay in more affordable states with lower taxes. According to data from the New Jersey Office of the Secretary of Higher Education, nearly 30% of New Jersey high school graduates choose to attend college out of state, a trend that has been growing over the years. Despite wanting to stay in New Jersey, the high cost of living and heavy taxes make it challenging to build a career in New Jersey. 

Regarding employment, finding stable, long-term opportunities for young professionals is a pertinent issue. In states where job growth is slowing, legislators should encourage employers to hire and develop the state’s workforce while promoting the benefits of remote and flexible work policies. Lowering business taxes supports job growth. A study from the National Bureau of Economic Research found that tax cuts are linked to a rise in the number of local businesses. Furthermore, as companies move to areas with lower taxes, there is a corresponding increase in employment, wages, and rents. 

High gas prices add to the burden for residents who depend on their cars to get around. Gas taxes strain working-class Americans everywhere; lowering gas taxes can leave more money in consumer pockets, stimulating economic growth. Jersey 1st supports implementing a reduction of the gas tax over time to improve commuter life in New Jersey. New Jersey has a high gas tax of $.42 a gallon. States with low gas taxes attract migration from New Jersey. Florida ($.10/gallon), Texas ($.22/ gallon) and Virginia ($.14/gallon) have all experienced significant migration from The Garden State. 

Affordable housing and innovative property development are significant concerns for Gen Z in many states, as high living costs make it hard for young people to find a place to live. With rising rent prices and few affordable options, many consider migrating to more inexpensive states. Making housing more accessible is critical if states hope to retain Gen Z residents.

Flexible zoning ordinances are another policy backed by Jersey 1st to allow for the redevelopment of unused buildings. States such as Texas, New York, and Oregon have utilized similar programs. In Houston, the Downtown Redevelopment Authority (DRA) has facilitated the conversion of old warehouses and office buildings into residential lofts, hotels, and mixed-use spaces. Lowering property taxes should also be a main focus of states hoping to retain Gen Z.