People are moving to Texas (no surprise to us!), but nowhere are they leaving most to settle in the Lone Star State than California.
In fact, 94,000 people moved to Texas from California in 2023, according to the Fall 2024 Texas Relocation Report from Texas Realtors. Most of the approximate 612,000 people who found their way to Texas in 2023, the most came from California, followed by Florida (51,000) and New York (30,000).
So why the exodus? Here are reasons to move to Texas, particularly for Californians:
Moving to Texas from California
Lower Cost of Living
There’s a lower cost of everything — or just about everything — in Texas versus California. Regular gas in Texas averages $2.7 a gallon. In California, the average cost of a gallon of regular gas is $4.73. Groceries in Texas for a family of four averages about $300 per week, while the same for Californians will set you back about $392 per week.
But it’s more than food and groceries that are less expensive in Texas. Rent in California is about $2,750 a month, according to Zillow. In Texas, the average is $1,895. And the cost disparity is even greater for those wanting to buy a home. According to the California Association of Realtors, the median home price in California was $861,020 in December 2024. Redfin lists the median list price for Texas homes for sale in March at $365,500.
Taxes are also much less in Texas vs California. Sales tax in California ranges from 7.25 to 10.75 percent, depending on location. And California residents pay as much as 13.3 percent in state income tax. Texans, on the other hand, pay no state income tax. Sales tax ranges from 6.25 to 8.25 percent depending on where you make your purchase.
One tax that is higher in Texas are property taxes. While the effective property tax rate in Texas stands at 1.68 percent compared to 0.75 percent in California, the median home price is 235 percent higher in California, so Texans still pay less property tax on average.
Better Job Opportunities
Texas’ free-market approach continues to deliver a strong job market. The Lone Star State added 327,400 jobs from September 2023 to 2024, a 2.3 percent growth rate, and has a 4.2 percent unemployment rate. California grew its employment base at a 1.5 percent rate with 265,300 jobs added during the same timeframe. Unemployment stood at 5.5 percent, its highest in the last three years.
Boosting the Texas job market is a business-friendly culture with no corporate income tax. In California, companies pay 8.84 percent in corporate income taxes. This could be one reason some major companies such as Chevron, Tesla, Charles Schwab and others have moved their corporate headquarters from California to Texas.
A Home Like No Other
Finally, Californians are drawn to Texas because they can get a beautiful home in a “Hey, y’all” community ready to roll out the welcome mat — a community like Riceland. Here, we push “hurry” out the window, opting for a relaxed ambience that lets you meet the neighbors and make lifelong friends. Our master plan calls for an array of amenities — playgrounds, pools, 10 acres of stocked lakes for catch-and-release fishing, pickleball, and 30 miles of trails that you and your walking buddy can explore. And when no one wants to host the potluck this weekend, neighbors can meet and dine at The Millhouse, a commercial space coming soon to Riceland’s Town Center. Our builders are ready to welcome those moving from California, Florida, New York, or just down the street. See what they have available.
