millennial magnet cities

Austin has fallen out of favor with millennials for 2025, report shows

Downtown Austin, state capital, Congress Avenue

Don't worry, you'll still find plenty of millennials on scooters downtown.

Millennial Austinites may be growing tired of the city's consistently changing landscape: Austin has once again fallen out from the coveted No. 1 spot in SmartAsset's annual report of "Cities Attracting the Most Millennials" in 2025.

In fact, Austin barely scraped into the top 10 and ranked No. 9 this year, just like it did in SmartAsset's 2023 report.

The 2025 study dug into data from the U.S. Census Bureau 1-Year American Community Survey to determine the number of millennials who moved to 271 U.S. cities in 2023 (where the most recent data is available). Rankings were determined by the percentage of the total population of millennials who moved into each city in 2023.

A total of 103,738 millennial transplants landed in the capital of Texas in 2023, according to the study's findings, bringing the city's total millennial-age population to 395,776. That means about 41 percent of the city's entire population is made up of people aged between 25 and 44.

Breaking that down further, the report found that the number of millennials who moved to Austin from elsewhere in Travis County was more than double those who moved from other Texas counties: 55,591 and 21,403, respectively. In addition, 19,890 millennials moved in from a different state, and 6,854 moved in from abroad.

SmartAsset also unveiled that the average household income of a millennial Austinite is $91,501 annually, and their total median housing costs add up to $1,828 per month.

While the report doesn't give a reason why millennials favored other cities over Austin, the city's housing prices, job market, and family planning prospects can all have an influence.

"Millennials are often in their prime earning years, and many have young families, which may significantly impact the communities they join and leave," the study said.

In a separate 2024 report by commercial real estate platform CommercialCafe, Austin was crowned the No. 1 city for millennials.

Alexandria, Virginia, is the No. 1 millennial magnet for 2025 with the highest proportional influx of millennial transplants in 2023, at 12.67 percent. For context, Austin's share of new millennials was only 10.69 percent.

Austin was the highest ranked Texas city in the report, with Houston ranking second statewide but 51st overall. Houston had a far higher influx of millennial newcomers in 2023, at nearly 177,000 transplants, but the share of new millennials that moved in as a percentage of the total population was lower than Austin's, at just 7.7 percent.

The top 10 magnet cities for millennials in 2025 are:

No. 1 – Alexandria, Virginia
No. 2 – Cambridge, Massachusetts
No. 3 – Denver, Colorado
No. 4 – Sandy Springs, Georgia
No. 5 – Seattle, Washington
No. 6 – Sunnyvale, California
No. 7 – Santa Clara, California
No. 8 – Arlington, Virginia
No. 9 – Austin, Texas
No. 10 – Orlando, Florida

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Defensive Driving

Austin-based Tesla faces new probe focused on remote driving feature

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The National Highway Traffic Safety Administration is investigating 2.6 million Teslas.

Federal regulators have opened an investigation into 2.6 million Teslas after reports of crashes involving the use of company technology that allows drivers to remotely command their vehicle to return to them, or move to another location, using a phone app.

The National Highway Traffic Safety Administration also said Tuesday, January 7 that Austin-based Tesla did not report any of the accidents. Tesla is under order to report crashes on “publicly accessible roads” involving vehicles being operated through its autonomous driving technology.

The new investigation follows another probe launched in October looking into the company's “Full Self-Driving” system after getting reports of crashes in low-visibility conditions, including one that killed a pedestrian. That investigation covers 2.4 million Teslas from the 2016 through 2024 model years.

Tesla did not respond to a request for comment from The Associated Press.

One driver filed a complaint after a crash while using Tesla's “Actually Smart Summon” technology and NHTSA is looking into another three similar incidents based on media reports, the NHTSA said. The agency is looking into 12 total incidents reported by users of the technology.

Each of the vehicles failed to detect posts and other parked vehicles, according to the NHTSA.

Regulators say the vehicles struck objects because the users had "too little reaction time to avoid a crash, either with the available line of sight or releasing the phone app button, which stops the vehicle’s movement.”

Shares of Tesla Inc. slid more than 4 percent in late afternoon trading Tuesday.

Musk has complained that U.S. regulations are too onerous and are holding back the development of self-driving cars. Ethics experts are worried that once President-elect Donald Trump takes office, Musk will push him to ease oversight of Tesla, which just suffered its first decline in annual sales in more than a decade.

Musk donated an estimated $250 million to Trump's presidential campaign and is a frequent guest at Trump's Mar-a-Lago, vetting cabinet nominees and meeting with foreign heads of state. Trump has put Musk in charge of an advisory group, the Department of Government Efficiency, that will recommend where to cut government expenses and staff at federal agencies and reduce regulation.

The NHTSA said it will look into the top speed that Teslas can reach when users deploy its “summons” technology, as well as restrictions on public roads and line of sights requirements. It also said it expects to check for any “connectivity delays" with the app that could result in increased stopping distance.

Tesla’s Model 3 owner’s manual says that its “summons” feature is designed for use only in parking lots and driveways on private property and is disabled on public roads.

The new probe covers 2016-2025 Model S and X vehicles, 2017-2025 Model 3, 2020-2025 Model Y equipped with Tesla's Full Self-Driving driver assistance system.

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