Having the country’s highest state taxes and housing prices tarnished The Golden State to the point that it has created a first: a population decline. Where are Californians hopping? Texas, with the major cities being Dallas – Fort Worth, Houston, and Austin.
The main reasons people are migrating to Texas are economic reasons and better opportunities. Some of these factors include the cost of housing, the cost of insurance, and an employment boom.
For example, it’s easy to find cheap auto insurance in Dallas, TX. The average monthly premium for auto insurance in Dallas is $140. This is just one way to save money annually, which can lead to cost savings in the long run.
We’ll highlight why The Lone Star State is shining so brightly by comparing cost-of-living aspects including housing and insurance between each state’s most expensive cities: Santa Monica and Dallas.
Why are Californians moving to Texas?
It is estimated that one in every 10 people that move to Texas come from California. This is in part because California has a large population, but there are other factors influencing this trend.
Texas and California are close in proximity to each other, which helps eliminate the concern of travel anxiety for those who are visiting Texas from California to see if relocating is a good idea.
The primary drivers for people to relocate to Texas are economic, but other factors help people live a better quality of life. The pandemic was also a driver for some families to relocate due to looser restrictions in Texas.
Cost of Living in Texas
One reason for the migration of Californians to Texas is the cost of living. Generally, housing is cheaper in Texas than in California. A recent estimate noted that housing is 59% cheaper in Texas than in California. Homes in Texas also have 14% more space.
For comparison, the median listing price of a house in November 2022 in Dallas was $440,000. The median listing price of a home in November 2022 in Santa Monica was $1,730,000.
Texas was also cheaper when it came to the housing price per square foot. When comparing Dallas and Santa Monica by the median price per square foot. Dallas was $243 per square foot. Santa Monica was $1,200 per square foot.
Texas has no state income tax and a reasonable state sales tax. California has the highest state income tax in the country and the state sales tax is higher than the state sales tax in Texas. Texas does have a higher property tax rate than California.
Auto insurance rates are comparable between Texas and California. Both states have average annual auto insurance rates around the national average.
Employment Opportunities in Texas
One reason is the boom of employment opportunities and job growth in Texas. Major corporations have made the move from California to Texas and many employees followed suit.
Texas offers better incentives and taxes for business, which makes it cheaper for companies to do business in this state when compared to California. There are employment opportunities for many different types of careers and professionals.
For entrepreneurs, Texas does not have a corporate tax rate, whereas California does. This can help encourage small business start-ups. However, there is a franchise tax of less than 1% in Texas.
Lifestyle Preferences
These economic factors can also help people afford the type of lifestyle they desire. Both states have lots of outdoor activities, scenic views, and nature opportunities but Texas is less densely populated.
Many consider Texas the best of both worlds because it blends country life with city life. Some areas of Texas have a small-city charm with big-city amenities. One fun fact is that Texas has one of the smallest mountains in the world. You can find it in Mount Pleasant, TX.
For example, Austin is a booming city with many opportunities for live music, sporting events, cultural activities, and outdoor recreation. Houston and Dallas also have plenty of indoor and outdoor attractions for both families and young professionals.
Californians who’ve grown accustomed to legal recreational cannabis will have a rude awakening: Texas marijuana laws still consider the drug illegal recreationally. It is available medicinally; however, instead of an ID card as California has, you can get a medical marijuana prescription from a doctor registered in the program if you meet the qualifying conditions.
Should I move to Texas?
While there are benefits to relocating from California to Texas, there are also some downsides to making this move. With more people moving to Texas, this can create burdens on the cities they are moving to. For one, traffic congestion can also be a problem when there is a great increase in population growth but if you are already used to the traffic in California, this may not be an issue.
Texas can have much hotter weather than most areas of California. Some areas in Texas can be affected by hurricanes. If you like the beach, the consensus is that the beaches in California are better than the beaches in Texas.
When it comes to the fittest states in the US, California has Texas beat. Texas comes in at number 44 and California comes in at number 26.
There are also major political differences between California vs. Texas. California tends to support the Democratic party, which means more progressive values. Texas is a more conservative state and supportive of the Republican party.
If you are considering a move from California to Texas, it’s important to consider all of the factors involved. You will want to think about employment opportunities, your budget, the cost of living, and your lifestyle preferences.
Melissa Morris writes and researches for the insurance comparison site, AutoInsurance.org. She is a university professor and enjoys traveling in her spare time.
