More and more California residents are packing up and relocating to Dallas, Tarrant, Collin and Denton counties.
“During the pandemic, with the greater possibility of working remotely, we have seen large numbers of persons fleeing high-cost cities, such as Los Angeles and San Francisco, and resettling in more affordable locales, such as Texas,” said Rogelio Saenz, professor in the department of demography at the University of Texas, in a new report from StorageCafe.
According to StorageCafe, approximately 111,000 individuals moved from California to Texas in 2021. This figure represents an 80% increase compared to numbers from a decade before.
“California is now a regular exporter of people, particularly to Texas,” said Saenz.
According to the report, almost 25,000 Californians relocated to Dallas, Tarrant, Collin and Denton counties in 2021. Additionally, nearly 100 companies relocated headquarters to Texas in 2020, 40% of which were from California.
The majority of those making the move are said to be Millennials with above-average incomes. Tech, finance, education and healthcare are currently the top job markets attracting newcomers.
Experts suggest remote work, Texas’s no-income tax policy and an affordable housing market are drawing in the migrants.
“While there is undoubtedly a series of factors fueling this movement, the steep housing prices and cost of living in California represent major reasons,” said Saenz.
According to StorageCafe, a typical home in Dallas, Tarrant, Collin or Denton county is 80% cheaper than in LA County, resulting in a list price gap of $392K. The most profitable move comes when trading San Jose for Dallas. With a 258% difference between home prices in Santa Clara County vs. Dallas County, the results can average a savings of over $1M.
For renters, those living in Los Angeles County pay over 50% more than in DFW destinations. In Texas, single-family homes are also 17% larger than comparables in Los Angeles. Apartments are also 6% larger.
“The continual soaring housing prices and cost of living in California and much greater affordability in Texas is likely to sustain the significant flows of Californians toward Texas in the coming decades,” said Saenz.
For the report, StorageCafe utilized the following research methods and sources:
- IPUMS Survey Documentation and Analysis tool, five-year estimates (2017- 2021)
- Point2
- Yardi MAtrix
- Zillow data
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