THE CENTER SQUARE—Despite a popular Texas phrase, “Don’t California my Texas,” and a song about the phenomenon, Californians are increasingly relocating to Texas.
Roughly 100,000 Californians are moving to Texas a year—the equivalent of the population of Santa Barbara, according to a new study by StorageCafe.
“This makes California the largest source of newly-minted Texans, accounting for about 16% of all state-to-state migration into Texas, followed by Florida and Louisiana,” the report states.
Six of the top 10 California-to-Texas moving routes began in Los Angeles County, the report found.
CafeStorage, an online storage unit listing platform, analyzed data from the U.S. Census American Community Survey 5-year Estimates Public Use Microdata Sample, 2023, on home and rent values, generational demographics, homeownership or rental status, educational attainment, remote work status, and per capita income. It also identified 30 popular moving routes from California to Texas, ranking them and providing maps. It also evaluated Zillow data on home price evolution in Texas and California.
A “steady west-to-east migration” is “increasingly urgent,” the analysis states, because policies in California have not improved. California’s “high housing costs, state income taxes, and overall affordability are pushing many Californians to seek out lower-cost, opportunity-rich alternatives,” it says. “For families, remote workers, and retirees alike, Texas offers the allure of spacious housing that is 63% less expensive, job diversity, and no state income tax—a powerful combination in a time of economic fluctuations.”
Of those Californians relocating to Texas, 31% are millennials; followed by Gen Z, 20%; and Gen X, nearly 15%.
Travis and Harris counties in Texas are the most popular landing spots, according to the data. Austin and Houston remain their primary destinations, citing lower housing costs and better economic conditions. The two counties are receiving more than 10,000 Californians a year, the report found.
California migration has greatly impacted the housing market in the Houston area, realtors have told The Center Square.
“For those priced out of California’s market, the draw is clear: Relocating to Harris County offers single family homes that are a whopping two-thirds less expensive and rents that are roughly 30% lower than in LA, even if home prices in the Houston area also saw a significant 75% increase over the past decade,” CafeStorage notes.
“The continued growth of the Houston area has pushed housing costs up over the last few years,” Daniel Potter, director of the Houston Population Research Center at Kinder Institute for Urban Research at Rice University, told CafeStorage. “There is some evidence of the real estate market cooling off, but home prices today are much higher than they were 5 years ago. Migration has a role in this, but it is not clear if this is primarily brought on by migration from California relative to other areas around the country and world.”
Another contributing factor is an exodus from Silicon Valley to Texas, the report found.
More than 8,000 Santa Clara County residents have left California and relocated to Texas in one year, primarily relocating in Williamson, Collin, and Travis counties, the report found.
A clear trend has emerged, CafeStorage notes. “These movers are seeking a combination of cost savings, tech-friendly economies and a high quality of life. With average home prices across Silicon Valley nearing $1.4 million, after having doubled over the past decade, the decision to relocate for more affordable housing is increasingly straightforward. The benefits are even more pronounced for remote workers, who can bring Silicon Valley-level incomes to much lower-cost areas in Texas.”
Under Gov. Greg Abbott, Texas continues to lead the U.S. in job growth, is repeatedly the top state for business and domestic migration every year and posts a multi-billion-dollar surplus every biennium. Under California Gov. Gavin Newsom, population losses, job losses and deficits have marked his administration. More than 683,000 Californians are leaving the state a year, according to U.S. Census data StorageCafe evaluated.
Originally published by The Center Square
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