California vs. Texas: Why Are So Many Californians Moving to Texas?
Why Californians Are Flocking to Texas
The migration from California to Texas has been notable in recent years, with thousands of Californians making the move annually. According to the U.S. Census Bureau, Texas consistently ranks as one of the top destinations for people leaving California. The state's reputation for affordability, job opportunities, and a lower tax burden make it a strong alternative for those tired of California’s high costs and policies. Texas, with its wide-open spaces and pro-business environment, provides an appealing contrast.
Reason 1: Lower Cost of Living in Texas
The cost of living is one of the most significant reasons for migration. California’s median home price in 2023 hovered around $800,000, according to Zillow, while Dallas Texas’ median price was much lower, at around $350,000. That’s nearly half the cost; for many Californians, the savings are life-changing.
In addition to housing, the cost of basic necessities in California far exceeds that of Texas. Utility costs, groceries, and transportation expenses are all higher. According to the AAA gas prices tracker, a gallon of gas in California averages $4.76, compared to $2.79 in Texas. This stark difference is why many families find that their quality of life improves drastically when they move to Texas, where their money stretches further.
Californians who move to Texas often experience an immediate sense of financial freedom. For example, families moving from urban areas in California, such as San Francisco or Los Angeles, to Texas report saving around 20-40% on their overall living expenses, allowing them to invest in other life aspects, like education or starting a business.
Reason 2: Housing Market and Affordability
Housing affordability is perhaps the most significant factor driving people from California to Texas. The housing crisis in California is well-documented. With strict zoning laws and limited housing supply, California’s cities have seen home prices soar. San Francisco, for example, had a median home price of over $1.3 million in 2023. Homeownership in such cities becomes nearly impossible for middle-class families.
In contrast, Texas offers significantly more affordable housing options, even in metropolitan areas. In cities like Dallas, Austin, and Houston, homebuyers can find spacious homes for a fraction of the cost. For example, in Dallas, the median home price in 2023 was just under $400,000.
Texas also benefits from more relaxed zoning laws, allowing for greater new construction activity. This leads to an abundance of housing supply, keeping home prices relatively stable. Suburban areas like McKinney, Frisco, and Prosper in the Dallas-Fort Worth metroplex are examples of areas where families can find larger homes with yards, often at half the cost of a small apartment in California.
According to the National Association of Realtors, Texas cities consistently rank among the top markets for affordable homeownership. The availability of affordable housing, coupled with Texas’ lower property taxes relative to home values, makes the state a prime destination for home buyers.
Reason 3: Booming Job Market and Major Industries
The job market in Texas has been one of the fastest-growing in the U.S. for the past decade. Texas consistently ranks at the top for job creation, driven by its diverse economy. California is known for industries such as entertainment, technology, and agriculture, but its high taxes and regulations have driven many companies to leave the state in search of friendlier environments.
Tech giants like Tesla, Oracle, and HP have all either relocated or expanded their operations to Texas in recent years. This shift has created a new tech hub in cities like Austin and Dallas, attracting talent from across the country. In 2021, Tesla announced it was moving its headquarters to Austin, citing lower costs and a more business-friendly environment in Texas as key factors in the decision.
Texas’ lack of a corporate income tax makes it highly attractive to businesses. Additionally, the state's large workforce, relatively low operating costs, and favorable regulatory environment have turned it into a major draw for tech, healthcare, and energy industries. The Texas Workforce Commission reported a job growth rate of 3.4% in 2022, significantly outpacing the national average.
This business-friendly environment benefits employees too, who enjoy higher disposable incomes thanks to lower taxes and living costs. For professionals in the tech or energy sectors, Texas offers competitive salaries without the financial burden of living in an expensive state like California.
Tax Income Loss in Liberal States Due To Tax Payer Migration 2019-2022
Reason 4: Texas Weather and Natural Disasters
California's natural beauty comes with risks, particularly in the form of natural disasters. The state is known for its earthquakes, wildfires, and droughts, all of which pose ongoing challenges to residents. The 2020 wildfire season displaced tens of thousands of Californians and destroyed thousands of homes.
Earthquakes, though less frequent, are a constant threat, particularly in regions like the San Andreas fault line.
Texas does experience its own weather challenges, such as hurricanes in the Gulf Coast region and occasional tornadoes, but these are less widespread and less damaging compared to California’s wildfire and earthquake seasons. According to the Insurance Information Institute, Texas’ hurricane risk is localized primarily to the Gulf Coast, whereas the rest of the state, particularly Dallas-Fort Worth, is relatively safe from large-scale disasters.
Many Californians who relocate to Texas find the state's weather more manageable. Summers in Texas are hot, especially in July and August, but they lack the extreme wildfire and earthquake risks that California residents must frequently prepare for. For families seeking stability and safety, Texas presents a more attractive option.
Reason 5: Lower Taxes in Texas
Taxes are another significant factor driving migration from California to Texas. California has some of the highest state income taxes in the nation, with rates reaching up to 13.3% for high-income earners. This has led many wealthy individuals and businesses to seek lower-tax states.
Texas, by contrast, has no state income tax, making it a haven for both individuals and companies looking to maximize their income. According to the Tax Foundation, the overall tax burden in Texas is much lower than in California. California’s tax structure includes not only high-income taxes but also higher corporate taxes and property taxes, all of which make it harder for residents to accumulate wealth.
For example, I worked with a client from San Jose who saved over $20,000 per year in taxes after relocating to Texas. That kind of savings allows people to reinvest in their businesses, upgrade their homes, or simply save more for retirement.
Texas' low-tax environment is a major draw for businesses as well. The state’s combination of no income tax, lower corporate taxes, and a relatively low cost of doing business has prompted companies like Tesla and Oracle to move their headquarters from California to Texas.
Reason 6: Outdoor Lifestyle and Recreation in Texas
While California offers iconic outdoor destinations like beaches and national parks, the high cost of living often makes it difficult for residents to enjoy them regularly. Many Californians find that, due to long work hours and high housing costs, they don't have much time or money to take advantage of the state’s beautiful scenery.
In contrast, Texas offers a wide array of outdoor activities at a lower cost. The state is home to numerous lakes, hiking trails, and parks, providing ample opportunities for recreation. Texas is also known for its wide-open spaces and more relaxed pace of life, which appeals to families looking for balance.
For example, Lake Grapevine, located near Dallas, is a popular destination for boating, fishing, and camping, and it’s just one of many recreational options in the state. With lower housing costs and more affordable amenities, families can enjoy outdoor activities without the burden of California’s high living expenses.
Reason 7: Less Traffic and Shorter Commutes
Traffic in California, particularly in cities like Los Angeles and San Francisco, is notorious for being some of the worst in the country. According to the Texas A&M Transportation Institute, the average Californian spends over 100 hours per year in traffic. This congestion is a significant quality-of-life issue for many residents.
By contrast, Texas, while still car-dependent, offers shorter commute times and less congestion in most areas. The Dallas-Fort Worth area has invested in expanding its transportation infrastructure, including the DART (Dallas Area Rapid Transit) system, which provides public transportation options throughout the metroplex.
Many Californians who relocate to Texas find that they gain significant time back in their day thanks to shorter commutes. One client, who moved from Los Angeles to Dallas, reported that their commute time was cut from over 90 minutes to just 30 minutes, allowing them more time with their family and reducing their stress levels.
Reason 8: Better Education Opportunities in Texas
Education is another area in which Texas excels compared to California. While both states have excellent universities, Texas offers a more consistent quality of K-12 education, particularly in suburban areas like Dallas. Texas schools receive higher ratings for their investments in STEM programs, extracurricular activities, and overall funding.
California's public schools, particularly in urban areas, are often underfunded and face overcrowding. According to the National Center for Education Statistics, Texas schools, particularly in suburban districts, consistently rank higher than their California counterparts.
For example, the Prosper Independent School District, located in a Dallas suburb, is highly rated for its focus on technology and extracurricular programs. Families moving
to areas like Prosper specifically choose these districts for their strong educational systems. Many Californians are surprised by the lower student-teacher ratios and better-funded facilities compared to what they experienced in California.
Reason 9: Political Climate and Cultural Differences
California and Texas have distinctly different political climates. California leans heavily progressive, with a focus on environmental regulations, social policies, and government services. This appeals to some, but others find California’s high taxes and regulations burdensome.
Texas, on the other hand, is known for its conservative values, including lower taxes, fewer regulations, and an emphasis on personal freedom. This political divide is often a driving factor for individuals and families relocating based on their personal and political beliefs.
According to Pew Research, many Californians cite frustrations with their state’s policies on crime, homelessness, and government regulations as reasons for leaving. In Texas, the focus on lower taxes and traditional values makes it an appealing alternative for those looking for a different political and cultural environment.
Reason 10: Overall Quality of Life in Texas
Finally, the overall quality of life in Texas is one of the most compelling reasons for Californians to make the move. Texas offers lower crime rates, more affordable healthcare, and a family-friendly atmosphere, all of which contribute to a better standard of living.
While no state is immune to crime, Texas takes a firmer stance on law enforcement, with cities like Dallas and Fort Worth prioritizing public safety. For many families, the sense of security and lower crime rates in Texas are significant factors when choosing to relocate.
