If you live in Texas, then there is a good chance you’ve heard the phrase “Don’t California My Texas”.
This phrase is often said when discussing the mass exodus of Californians and businesses that abandon California to move to Texas.
The result of this has reshaped housing markets, labor trends, and local economies in major metro areas across the state.
Pete Alexopoulos via Unsplash
Pete Alexopoulos via UnsplashThe Truth is in the Numbers
According to migration data, roughly 100,000 Californians move to Texas each year.
This makes California the largest source of new Texans, accounting for about 16% of all state-to-state migration into Texas.
The Cost of Living in Texas Versus California
One of the most obvious perks of this migration is housing affordability.
California’s median home prices have historically been far above the national average, often exceeding $700,000, while homes in Texas have been comparatively more reasonable.
This affordability gap is a major reason many Californians choose Texas: homes in Texas are often 60 to 70% cheaper than in California, and living space tends to be larger for the money.
As a result, cities like Austin, Dallas, Houston, and San Antonio have seen significant increases in population and demand for housing.
In other words, this boom in population is making housing exceedingly more expensive.
It’s More Than Just Housing
Migration isn’t just about housing. Texas’s business-friendly environment, which includes no personal income tax, is a significant advantage.
This, teamed with cheaper housing and lower cost of living, makes it extremely appealing to companies for corporate relocations from California.
Tech firms and other corporate offices have expanded their presence in Texas, boosting job opportunities in sectors like technology, professional services, and corporate operations.
This shift helps diversify the Texas economy beyond its traditional bases in energy and manufacturing, among other industries.
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While it’s great that many former California residents are seeing the value of relocating to Texas, Texans should note that the California-to-Texas migration trend has spurred economic growth, attracted new talent, and fostered business expansion.
However, how can we welcome our new residents and avoid the challenges in affordability, urban planning, and infrastructure in Texas? That remains to be seen.
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