It looks like everyone wants to exit California. But why is that?
Well, when an outsider thinks about California, most probably for them, it’s all about Hollywood and glamor lifestyle.
On the contrary, the other side of the story is all about expensive housing and a high income-to-tax ratio.
This is where Texas came in with a low tax ratio and more business opportunities.
Wait, what?
Isn’t the tech giant Silicon Valley in California?
Well, now many startups are also moving to Texas from California, in the near future, this Lone Star State will be the new Silicon Valley.
Well, with the number of startups moving to Texas, in the near future, this Lone Star State will be the new Silicon Valley.
So, are you ready to move to Texas from California? Well, don’t rush right now.
Read our detailed, in-depth guide first. So, you’d be assured nothing is missing!
Why Californians Are Moving To Texas
There are four root causes of why people are moving from California to Texas. Some crises are even way more serious than the tax ratio.
- Cost of living in California is skyrocketing. The living expense is 41% higher than the national average, and housing is even worse, with a 96% higher ratio.
- The homeless crisis is not going anywhere. Infamous Sacramento county has seen a 67% surge in the homeless population. High housing costs are to blame.
- Its forests are on fire. On average, there is at least one large wildfire every year. The Dixie fire of July 2021 is the largest single-source wildfire in California history.
- Right now, 84.6% of California is experiencing moderate drought, as per government drought report statistics.
That’s why in 2022, over 211,000 residents decided to exit California, as per California’s Department of Finance report.
What’s Texas Got To Do With The Exit California Problem?
There are two perspectives that narrow down to one major problem, and that is affordable living costs and cheap labor for companies.
Why are people moving to Texas from California? This question was a huge debate when Tesla decided to shift to the Lone Star State.
Well, here’s the reason:
The CA government has increased the minimum wage to $15.50 per hour, almost double the $7.25 in Texas.
This means companies can hire cheap labor and keep the bigger chunk as profit.
One way or another, it benefits companies. But what about the people? Why did they choose to leave everything behind and opt to start a new life in Texas?
Why Are People Moving To Texas?
In the past, residents preferred moving from Texas to California to experience the life of the American Dream.
But now, the situation is quite the opposite.
Here’re the major 7 benefits that’s why people love to settle in Texas and call it home.
1. Texas Is Affordable
Although Ca and Tx are two of the country’s biggest states, the living costs in each differ greatly.
Texas is among the few states that do not impose an income tax, aside from lower tax rates.
On the contrary, In California, the living expense is 41% more than the national average, and housing is even worse, with a 96% higher ratio.
2. Warm Texas Weather Year Round
Although it’s difficult to surpass south California’s near-perfect weather, inhabitants of Texas can choose from a variety of pleasant climes.
Regardless of where you stay in the state, you will experience year-round sunshine and a coastal atmosphere.
Lone Star State receives 5,137 kJ/m2 of sunlight each year, making it the 4th warmest state.
So, be ready to get your perfect tan!
3. Texas Economy Is Booming
In 2022, Taxes GDP surpassed the whopping $2.4 trillion mark, making it the second-best performing state.
When it comes to the economy, it is considered the arch-rival of California’s GDP stands at $3.63 trillion.
In the competition of Fortune 500 companies, Texas leads the nation with 53 companies, making it the best state to move to for work.
4. The Excellent Quality Of Education
Throughout the country, this state is known for its educational brilliance.
Texas students, both in public and private schools, do substantially better than those in other states. There are 38 universities where you can pursue higher education.
Currently, the University of Texas at Austin ranks at #67 for quality education and shines at #80th position when it comes to employment probability.
5. Texas Property Taxes vs California
In Golden state, if you want to buy an apartment that would roughly cost over $1 million, a studio apartment.
But here in Texas, you can buy a decent home for $400,000. As of Jan 2023, the housing market has seen a 2.4% surge. But still buying a home is still affordable.
The cherry on top is that Lone Star State has no state property tax. While in California, you have to pay 0.71% tax annually.
This sums up that the Lone Star State is nothing less than heaven for the Cali residents.
But this is not all. There are many aspects where Cali is better than Texas. So, let’s dig a bit deeper.
Should I Move To Texas | The Big Debate?
That is quite a big question. Unfortunately, there is no straight answer to that.
So, why not let the numbers and data speak for themselves? This way you can decide better for yourself.
1. Living In Texas vs California
The lone star state is warm and considered the land of opportunities. While the Golden state is known for its glamor and Hollywood-inspired lifestyle.
Have a quick look at the table given below for a quick fact check:
| Life Aspect | Texas | California |
|---|---|---|
| Monthly Rent | $500 – $1500 | $1700 – $4500 |
| Buying A Home | $30,000 – $400,000 | $770,000 – $3 million |
| Utilities Cost | $400 – $500 | $550 – $800 |
| Income Tax | Not Applicable | Varies Between 1% to 14% |
| Property Tax | Not Applicable | 0.71% |
| Starting New Business | Easy (#13 business climate) | Hard (#48 business climate) |
| Job Market | 1.3 million jobs in 2022 | 4.4% unemployment rate |
| Transportation Cost | $33 per month | $109 per month |
| Safety Index | 4.6 incidents per 1000 ppl | 4.4 incidents per 1000 ppl |
| Abortion Right | No Right | Yes |
| LGBTQ+ Status | Legal | Legal |
| Gun Laws | Can carry a gun in holster | Can carry a gun with CCW license |
| Weather | Warm summer / Mild winter | Warm summer / Wet winter |
| Natural Crisis | Around 900 per annum | Around 7800 per annum |
Overall, the cost of living in Texas is 35% cheaper as compared to California.
2. Affordable Care Act California VS Affordable Care Act Texas
Overall, in the whole USA, healthcare is expensive and average residents can’t even think about Self-pay.
In Texas alone, the number of Medicare beneficiaries stands at 4.5 million people. While a total of 10% of Medicare beneficiaries are from the Golden State.
With the affordable care act in both states, now healthcare is for everyone.
In both Texas and California, residents are eligible for Obamacare plans if their income is between 138 percent to 400 percent of the FPL, with no Medi-cal, Medicare, or Veteran (ChampVA) and employer insurance.
3. Texas Crime Rate vs California
Ultimately, it is one of the main reasons why there is sudden increase in people moving from California to Texas. Statistically, Texas is safer, but still, there are 410 violent crimes reported per 100,000 residents each year.
While the Golden State has 447 violent crimes per 100,000 each year.
Violence in schools is a big issue for both states. Overall, no one is better to live in when it comes to gun control laws.
4. Buying A House In California vs Buying A House In Texas
Taxes state wins with a major margin when it comes to buying a home.
In California, you have to save at least $103,000 as a down payment, and if you’re opting for a conventional loan, then the number can be higher up to 3%.
It is worth mentioning that residents also have to pay a 0.71% of annual property tax.
So, this all sums up to over $1 million for just a normal studio apartment in LA or San Francisco.
The lone star state has no property tax and affordable housing costs in Texas, which is one of the main reasons for the low homelessness ratio.
5. Income In Texas Vs Income In California
- Average Income in Texas: $34,255 per capita
- Average Income in California: $41,276 per capita
Well, this explains pretty much why everyone loves to move from California to Texas. The income in California is higher because the minimum wage per hour is $15.
While in the lone star state, employees are paid $7.75 per hour.
For companies, Texas is a gold mine. While California suits more job holders (if you ignore the high living cost).
Ready To Move!
Then quickly decide where to live in Texas!
Well, let’s help you with that elephant in the room.
Where To Live In Texas?
There are a few factors to consider first while you plan to move from California to Texas.
- Why are you moving here?
- Are you moving with your family?
- What’re the best cities in Texas for business?
- Which cities have more employment opportunities?
Luckily, we’ve got you covered with that.
| Best Cities In Texas For Families | Best Cities In Texas For Starting Business | Best Cities In Texas For Employment | Best Cities In Texas For Singles |
|---|---|---|---|
| Frisco | Austin | Austin | Fort Worth |
| University Park | Dallas | Midland | Houston |
| Flower Mound | San Antonio | El Paso | Irving |
| Sugar Land | Houston | Corpus Christi | Lubbock |
| Austin | Round Rock | Plano | Arlington |
It is worth mentioning that everyone is welcome to move here, the lone star state.
There is no such thing as only a “certain” area or city being suitable for the LGBTQ+ community, and certainly, there is no place for racism here.
Cost of Moving From California To Texas
The cost of moving from California to Texas varies substantially based on the person or family.
The weight of your belongings is among the most important factors to consider when calculating the cost of moving them.
Distance, time, and packing services also influence the cost.
Moving from California to Texas costs between $4,000 and $8,000 for a one-bedroom apartment with two movers and a driver.
Moving From California To Texas FAQs
How much does it cost to ship a car from California to Texas?
It can cost anywhere between $1200 to $1800 to ship a car from California. The cost varies depending on which city in Texas you want your car to be shipped to.
Why do Californians move to Texas?
Californians are moving to Texas due to low property and income taxes, more business opportunities, warmer weather, and high living standards.
Is moving to texas a good idea?
Yes, you can save your hard-earned money by moving there. Buying a home and starting a business is more affordable in the lone star state than in California.
What makes Texas great?
Texas is big, bold, and unique. You can be yourself. Low taxes on income is yet another reason that makes this state a “booming paradise” of the US.
What is the distance between Texas and California?
Both states are 1406.5 miles apart from each other. It can take over 22 hours to reach one end to another through I-40 W.
Wrapping It Up!
Let me say it clearly and loudly, with number of people moving to Texas from California, it is going to be the next Silicon Valley of the US. From warm weather to a low income-to-tax ratio, everything is perfect here.
Even though income per hour is 50% less as compared to California, housing and utilities are quite affordable.
With 53 fortune 500 companies, it is the best state for employment.
In a nutshell, you can live a decent life here at an affordable cost.