Californians Exiting: The High Rise of Residents Leaving for Texas

(Not) California Dreaming

Even in Encinitas, with so many reasons to make the move to the coastal city, some residents are also considering making the move to the Lone Star State. Moving to another state can be challenging and even emotionally draining–so why are so many Californians doing it? 

High Cost of Living

This will probably come as no surprise, but one of the main reasons to become an official “ex-Californian” is it’s too expensive to even be one. In Texas, the average cost of a home is significantly less. With the soaring price of groceries, utilities, and transportation also thrown into the mix, the pressure to just get by is a burden for many.


State income tax, property tax and sales tax are notoriously high in California. Texas has no state income tax at all, so the idea of trading palm trees for tumbleweeds may not seem like such a bad idea if thousands of dollars can be saved on your annual tax bills.

Quality of Life

Many Californians are reconsidering living in the state because of over-crowded cities, highways clogged with traffic, and environmental concerns. For instance, Dallas bolsters 27% of the city being set aside for parks, making it one of the top 50 U.S. cities with the most per capita green space

A New Frontier: Texas

The real estate market is perpetually in flux, and one of the main attractions of Texas is that homes there cost nearly 70% less than in California. This allows families to get better value on their money and purchase larger properties with many more amenities than they might otherwise afford. Let’s take Dallas again, here homes come close to an average $1 million in savings compared to a home in San Jose.

Favorable Business Climate

In contrast to California with its high taxes and stiff regulations, Texas has always been seen as more business-friendly. In fact, some California-based companies such as Charles Schwab, Hewlett Packard, and CBRE have relocated to Texas, seemingly Pied Pipering droves of ex-Californians with them.

The state has an economic directive to keep businesses already thriving and to attract new ones. Since the start of the pandemic, scores of companies have planted their flag in Texas, with nearly 40% being from California.

Impact on Texas Housing Market

There’s no doubt that this sweeping migration to Texas has brought with it enormous business opportunities, but it has also driven up home prices–one of the main factors so many Californians made the move in the first place. Currently, the average home value in texas is $307,038, a 1.0% increase over the past year. 

Those coming from California typically earn higher wages, thus can afford homes with heftier price tags. But this can make the same property unaffordable and out of reach for a local making a lower income. 

And If You’re Making the Move…

Californians moving to Texas is changing the real estate market in both states, but making the move is a personal decision. Having the right Realtor on your side, who can help you whether you want to sell your home in California, or look for new opportunities in Texas, will make the process (whichever direction you’re going) much less of a headache.
If you’re contemplating making a move to Texas, or just looking for more information in general, contact Linda Moore today to help you find the home that’s right for you!

To top ⬆