Californians moving to Texas to find cheaper homes, more space (2023) (2023)

FAQs

Why do people from California want to move to Texas? ›

One of the BIG reasons to move to Texas from California is the taxes. California state income tax is the highest in the country, on all levels. Californians pay as much as 13.3% in state income tax and, depending on local rates, between 7.25% and 10.75% in sales tax.

Benefits of Moving From California to Texas

Because Texas is growing so rapidly, it can be an excellent place for people searching for new job opportunities. Housing costs are a huge issue in California—the average cost of rent for an apartment is $1,600, while the average cost in Texas is a little over $1,000.

The highest number of new Texans from other U.S. states relocated from California and Florida, respectively. Other top states for people moving to Texas included Louisiana, Illinois, Oklahoma, New Mexico, Georgia and Arizona.

One reason contributing to a lower cost of living and affordable housing is that Texas has no state income tax. Texas is one of seven states in the U.S. to not have an income tax. In comparison, as of 2022, the states with the highest income tax rate are Minnesota (9.85%), New York (10.90%), and California (13.30%).

From his research, Clark has found that Californians are almost exclusively moving to Texas' four large metro areas — Dallas-Fort Worth, Houston, San Antonio and Austin.

Travis County — home to Austin — attracted the largest group of California residents, according to the Express-News data analysis. And it's not just residents leaving the Golden State. According to news channel CBS 13, 153 California companies relocated from California to other states in 2021.

Nevertheless, the data does suggest that it is relatively less expensive to live in Texas than in California. In fact, the Lone Star State is home to three of the most-affordable burgs in America: Harlingen, McAllen, and Amarillo all rank in the top five of Kiplinger's "Cheapest U.S. Cities to Live In 2021" survey.

Though Texas has no state-level personal income tax, it does levy relatively high consumption and property taxes on residents to make up the difference. Ultimately, it has a higher effective state and local tax rate for a median U.S. household at 12.73% than California's 8.97%, according to a new report from WalletHub.

Is it really cheaper to move to Texas? ›

Texas is one of the more affordable states in the country. Compared to the national average, your living expenses will be 7 percent cheaper — though the exact figure will vary based on where you choose to live in the state.

Warm and tax-friendly, living in Texas is a great idea. With many diverse cities and endless job opportunities, Texas is a popular destination for young professionals, families, and retirees. Compared to living in Florida, Texas is slightly cheaper and just as warm as the sunshine state.

Frisco, Texas, was ranked as the safest city in the nation for a second year in a row, according to a new report from SmartAsset. The city, located north of Dallas, was joined by McKinney and McAllen, Texas, which ranked second and third overall, respectively.

Qualifying for a mortgage to buy a home in another state is as simple as finding a lender licensed in that state. For a primary residence, you do not need to move to the new state before you apply for the mortgage as long as you plan to move into the property when your loan closes.

The cost of a home in Texas is drastically cheaper than owning a home in California. The average cost of a home in the U.S. is $231,000. A home costs 60% more in California compared to Texas. In Texas, the median home price is only $195,000, which is lower than the national average.

1. Fredericksburg, TX. Fredericksburg is one of the best small towns in Texas. It's known for its strong German influence, delicious peaches, and outstanding local wineries — which makes sense since it's located in the heart of Texas wine country.

Assuredly these are not the only states attracting Californians; states such as Washington, Nevada, Idaho, Montana, and Colorado all present enticing benefits. Texas, Arizona, and Oregon simply appear to be the best positioned and data indicates they are benefiting most thus far.

No Income Tax

This incentive draws people to the state in the hopes of keeping more of their income. Combined with the low cost of living, the lack of income tax makes it easier to live the way you want in Texas.

The analysis from the website HomeSnacks.com factored in poverty rate, median household income, unemployment rate and where the richest people in the state live. In order to make the list cities also had to have a population of at least 5,000. Southlake topped the list with a median income of $239,833.

What is the safest route from California to Texas? ›

Our recommendation is to take the I-40 between California and Texas for the safest possible drive, but whichever route you take there are things you can do to reduce some of the risks of taking this trip.

The economy of the State of Texas is the second largest by GDP in the United States after that of California. It has a gross state product of $2.355 trillion as of 2022. In 2022, Texas led the nation with the most companies in the Fortune 500 with 53 in total.

If Texas continues to expand at this rate, while California plateaus or even declines, the population of Texas could overtake California in the next several decades. For example, if Texas were to continue to grow by 1.3% per year, while California grew at 0.1%, Texas would pass California in 2045.

Comparing Energy Prices in Texas and California

California has higher electricity and natural gas prices than Texas, and this is reflected in the latest data published by the US Energy Information Administration. The following table compares the electricity prices reported in March 2022 for Texas and California.

There are plenty of building supplies available for new homes. The cost of living is affordable, the state has low tax rates, and it has a strong economy. These reasons and more make Texas a cheap state and a great place to live. What is this?

The City of Stafford holds the unique distinction of being the largest city in Texas to abolish city property taxes. This includes both commercial and residential properties. In addition to a lack of city property taxes, the State of Texas has no state property taxes.

The proposals target the taxes homeowners pay and require school districts to lower their tax rates.

Texas has no state property tax.

The Comptroller's office does not collect property tax or set tax rates. That's up to local taxing units, which use tax revenue to provide local services including schools, streets and roads, police and fire protection and many others.

What is the safest city in Texas 2023? ›

Four out of the top five safest cities in America are in Texas, according to a new report from SmartAsset. Frisco, McKinney and McAllen are the top three safest cities in the country, while Plano ranks at No. 5, according to the finance site's “Safest Cities in America – 2023 Edition” report.

Nearly all residents of Carrizo Hill live below the poverty line. The local poverty rate in the town stands at a staggering 96.9%, compared to the statewide poverty rate of 14.0%. All data in this story are five-year estimates from the U.S. Census Bureau's 2021 American Community Survey.

Average Cost of Living in Texas: $45,114 per year.

With that in mind, a good salary in Texas is between $55K and $73K. To live comfortably anywhere, it helps to track your spending and saving with SoFi Insights.

According to the study, a North Texas resident without children would need to make $64,742 after taxes to live comfortably. The study is based on the MIT Living Wage Calculator, which uses the cost housing, food, transportation, medical care and more.

Heat. Texas gets hot in the summer, and that can make your move uncomfortable, sticky, and sweaty. Unless you are moving to the cooler mountains, plan to contend with the Texas heat for any move between May and September.

Texas is the top state Californians are moving to. Based on U.S. Census American Community Survey migration data from 2009 to 2019, Texas has been the #1 destination for departing Californians within the last decade. During that time period, an average of about 68,700 Californians moved to Texas each year.

Age and Sex.

We see that the 18-44 year old age group accounts for the majority of domestic migration to and from Texas.

San Antonio

The Alamo City wins out, and for a lot of different reasons, according to the article.

What is the safest small town in Texas? ›

El Paso. El Paso is often ranked as the cheapest place to retire in Texas, but it also gets high marks for the overall happiness rating of its residence. You'll get access to high-quality healthcare, recreation, and cultural attractions.

Texas has no state property tax.

The Texas Constitution and statutory law authorizes local governments to collect the tax. The state does not set tax rates, collect taxes or settle disputes between you and your local governments. Who administers the property tax system?

Texas home buyer stats

“Minimum” down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620. If you're eligible for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the U.S. Department of Agriculture), you may not need any down payment at all.

No. Texas does not have reciprocity with any state. To become licensed, you must satisfy all current Texas licensing requirements.

One reason contributing to a lower cost of living and affordable housing is that Texas has no state income tax. Texas is one of seven states in the U.S. to not have an income tax. In comparison, as of 2022, the states with the highest income tax rate are Minnesota (9.85%), New York (10.90%), and California (13.30%).

A research economist at Texas A&M says housing supply has been lagging since before the pandemic while demand has grown, causing home prices to surge. The supply of houses on the market are outweighed by demand, causing prices to surge.

Unique Culture. There is no place quite like Texas. Bold, big, and distinctive, the friendliness of its people, the vibrancy of its art scenes, the distinctiveness of its cowboy culture, and the richness of its diversity make it a one-of-a-kind place to live and work.

Why do people want to leave California? ›

Why? Well, there are a few reasons. The decision to leave were partly fueled by the COVID-19 pandemic, including new opportunities for people to work from home. Also, the high cost of living in California also drove people out.

The overarching reason to move to Texas is an improved quality of life. Texas offers low living costs but great work, leisure, and entertainment opportunities. The Lone Star state is hospitable, welcoming to people of all kinds, and rich in diverse culture and history.

Texas is internationally regarded as the best state in the US for business due to its prosperous economy and low taxes. It's also a safe state to live in and offers plenty of opportunities for its citizens. Adding vast landscapes, natural beauty, and the friendliness of Texans makes Texas the best.

There are plenty of building supplies available for new homes. The cost of living is affordable, the state has low tax rates, and it has a strong economy. These reasons and more make Texas a cheap state and a great place to live. What is this?

Some of the most significant advantages of moving to Texas include highly affordable cost of living, tax free income, delicious and vast cuisine, diverse cities, rich history, and varied career opportunities. It also boasts some of the biggest oil reserves, the NASA space center, and other world-famous attractions.

According to the Allied and Zillow 2021 Magnet States Report, most of those relocating for work are headed to Texas, while others they describe as “consumers” favor Florida.

Top states residents are leaving

The annual 2022 United Van Lines National Movers study is out! But it wasn't good news for New Jersey or New York. A similar report from United Van Lines showed New Jersey as the top outbound state, followed by Illinois, New York, Michigan, and Wyoming. The full list is below.

The population dropped by nearly 140,000 last year while housing grew at the highest rate in 14 years. “The total population dropped to an estimated 38.9 million at the start of 2023, down from 39.1 million at the start of 2022, a 0.3% decline,” reports Sophia Bollag for the San Francisco Chronicle on May 1.

The Dallas-Fort Worth metro area is the big winner, according to a report from moveBuddha, which measured the number of people looking to move into each city versus moving out in the first half of 2022. Of the 20 Texas cities with the highest in-to-out ratios, eight of them were around DFW.