Will the California Texodus continue?

During the pandemic we saw unprecedented numbers of people leaving California to move to Texas.  It was such a phenomena that it earned the cheeky name “the Texodus.”  According to a recent study by Storage Café, 2021 was a record-breaking year with 111, 000 Californians making the move to Texas.  That’s around 300 people a day! 

But now that pandemic fears have waned, will the great Texodus continue? 

Storage Café suggests that the migration from California to Texas will go on.  We agree, but likely not at the same levels we saw in 2021.

Much of the migration to Texas was driven by affordability and jobs, and those factors still support a move.  Here in Austin, for example,  we added 51,000 jobs (a growth of 4.1%) in the 12 months ending April 2023, according to the Austin Chamber of Commerce.  That makes Austin 7th among the top 50 metros in the U.S.  So Texas -- and Austin in particular – will continue to draw job seekers.  But the job market isn’t just appealing to workers, it’s also drawing employers.  According to the Texas Standard, over 100 companies relocated their headquarters to Texas since 2020, and 40% of those companies came from California.  

In addition to job opportunities, Texas’ affordability continues to make economic sense on many fronts: no income tax, lower cost of living (92.3 vs 139.4), lower utility costs, and so on.  Plus you can get so much more house for your money in Texas.  The median cost of a home in Texas is $408,000 and in Austin it’s $483,00 as of June.  That’s a deal compared to $689,880 in California.

Of course, this migration isn’t all one way.  Approximately 33,000 Texans moved to California in 2021 according to Storage Café’s analysis.

If a move to Austin is in your future, we’re here to help you understand the differences in the market and find a new place to call home.  Reach out to explore your options.