Texodus: Why Are So Many People From This State Moving to Texas?

There's a migration going on, with 300 Californians a day moving from the Golden State to the Lone Star State. In 2021 alone, 111,000 people loaded their wagons and saddled up for life in Texas. To learn more about why they're moving, we turned to a study conducted by StorageCafe. Here's what we learned.

1. Job opportunities

The tech and energy sectors support Texas's rich array of job opportunities. StorageCafe research found that millennials (those born between 1981 and 1996) are leading the pack, accounting for 46% of those now calling Texas home. And largely, those millennials are heading for Austin, Houston, and Dallas -- home to tech, finance, education, and healthcare.

Some Californians bring their jobs with them as they take advantage of the remote work trend to settle in a less-expensive area.

2. (Much) more housing for the dollar

On average, homes in Texas cost about $282,000 less than homes in California. Depending on where in California a person comes from, the savings may be even more dramatic. For example:

• If someone were to move from Santa Clara County, California, to Dallas County, Texas, it would cost a whopping 258% less to buy a home.
• Moving from San Mateo County to Travis County would cost 243% less.
• Leaving Santa Clara County to buy a home in Williamson or Travis County would generate a potential savings of over $900,000.

Renters also get in on the savings. Most Californians moving to Texas can save over $1,000 a month in rent.

3. Room to stretch

The average single-family home in Texas is 17% bigger than the average single-family home in California. However, there are some counties in Texas where homes are much larger. One example is Collin County, Texas. If a person were to migrate from Los Angeles County to Collin County, they could easily buy a home 62% bigger than the house they left.

4. Opportunities to bank money

Newly-arrived Californians will find that they can save money in a multitude of ways, including the following:

• State income tax in California ranges from 1% to 12.3%, but Texas has no state income tax.
• Texans pay roughly 20% less for their utilities than Californians.
• Even renting a storage unit is less expensive. For example, a standard unit in Los Angeles is $259 per month, while a storage unit in Austin rents for $120 per month.

The average millennial moving to Texas has an annual household income of $114,000. That's 21% more than the average millennial nationwide. Extra money makes it possible for these new Texans to qualify for a larger mortgage. Buyer power and the sheer number of people moving from California to Texas help explain the extra strain on the housing market. Zillow data shows that over the past five years, the median value of homes in Texas has increased by 54%.

Time will tell how growing Texas cities handle the new influx of West Coasters. In the meantime, watching how shifting demographics alter the Texan landscape will be interesting.