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Cost of living, housing affordability, taxes — all are reasons why Americans are relocating to cheaper pastures. Where, exactly? In 2023, they moved in droves to one state: Texas.
According to the U-Haul Growth Index — a gauge of how successfully states and cities are attracting (and maintaining) residents by analyzing the number of one-way movers — Texas netted the most newcomers, accounting for 50.4% of all one-way U-Haul traffic.
Conversely, California saw the largest net loss of one-way U-Haul equipment for the fourth consecutive year, according to the Index, a phenomenon labeled the “California Exodus” by CNBC. Higher and continuous costs of living have driven residents to move out of the state in large numbers. Between April 2020 and July 2022, there were more than 700,000 Californians who made that decision.
William Ruger, president of the American Institute for Economic Research, noted that while people and businesses move for a lot of reasons (with climate and locational amenities being the most common, according to the U-Haul rankings) another factor is also at play:
“As we show in our book, Freedom In The 50 States, relative freedom matters a lot too,” Ruger said. “Even controlling for the most common reasons people move, economic freedom is a significant reason that some states like Florida, Texas and Tennessee are attracting new residents while other states that rank low for economic freedom like New York, New Jersey and California are creating conditions that motivate people to vote with their feet and leave.”
Indeed, Florida ranks right behind Texas among growth states for the third year in a row, followed by North Carolina, South Carolina, and Tennessee.
So, How Much Does It Cost To Live in Texas?
First, there is no state income tax in Texas. According to Texas Real Estate Source, the cost of living in the Lone Star state is typically 6-8% lower than the national average. For example, relocating from New York City to Dallas can result in saving nearly 40% on overall living expenses, and Los Angeles to Austin saves around 32%.
In terms of housing prices, the average Texas home value is $296,127, compared to the national average home value of $346,048, up 2.2% in the past year. Overall, Texas home prices went down in several cities, including in Austin (average home value: $530,990, down 8.9% over the past year), Dallas (average home value: $304,813, down 0.2%) and Houston (average price: $261,764, down 0.4%), according to Zillow data.
If you’re thinking of making a move, the Lone Star State might just be the place for you.
This piece was originally published in GOBankingRates.
