WHAT MAKES TEXAS, TEXAS

migration is the Sincerest Form of Flattery

WHAT MAKES TEXAS “TEXAS”?

by Ann Marie Kennon

In 2021, Texas ranked #1 in oneway U-Haul rentals entering the state. Representatives at U-Haul report that due to pandemic conditions, people were forced to make adjustments in their lives and more than half of their national traffic involved a move to or within Texas last year. Texas U-Haul Vice President Matt Merrill said, "The way Texas deals with the pandemic is using common sense. Everybody takes care of themselves and takes care of their neighbor and we can't be shut down. We have to deal with it head-on. We continue to be open." Traffic into Texas grew nearly 20 percent from 2020 to 2021, largely due to moves from the west coast, mid-Atlantic, and New England states.

Still, for nearly 200 years before COVID, Texas was attracting other Americans and today, migration from other states accounts for nearly one-third of the state's population growth from year to year. According to experts like U-Haul and Forbes, data show Texas is home to four of the top 50 most active metropolitan areas in all sectors of real estate combined over the past decade.

REAL ESTATE TRENDS

Over the past decade, Dallas has shown the most office and industrial growth while Houston stands out as the most active single family market and the Austin-Williamson County metro area ranks 11th with the greatest population growth by percentage. This is no surprise to anyone who has lived in Liberty Hill since 2010 and experienced the 361 percent increase in the local population in 2022.

Newcomers to Texas seem to land in the Houston area, particularly those Californians seeking relief in the state's lower home prices and tax rates, cheaper land, and solid economy but who still prefer a city lifestyle. Combining all these trends, the U.S. Census Bureau data show, overall, more than 687,000 Californians have moved to Texas over the last decade. Given the cost, it is hard

If Texas were a nation— again... we would have

won more Olympic medals in 2020 than 89 other countries the 7th largest number of billionaires in the world the 50th largest population in the world more tax revenue since we give the Federal Government more than they give back the 18th largest GPD in the world; about the same as Canada one-third of the world's largest recoverable oil reserve the 13th largest road network in the world the 40th biggest landmass in the world; bigger than France, Ukraine, Spain, Iran, and Afghanistan the ability to defend ourselves via 25 military bases, including ownership of the only nuclear weapons assembly plant in the current United States continued ability to power our nation with our own power grid Elon Musk as a sovereign citizen.

to blame them; a typical home in Harris County, for example, is 57 percent cheaper than in Los Angeles County, whereas the average annual pay is about the same.

As well, according to the Tax Foundation, Texas has the nation’s fifth-lowest state and local tax burden, and even with a freak winter storm that collapsed our power grid, Texas still held on to Chief Executive Magazine's “Best State for Business” title for the 18th year in a row.

Texas real estate remains hot for the second year in a row because our state offers much in terms of job prospects, changes in lifestyle, and retirement. Until that star fades, it’s hard to imagine the migration changing anytime soon.

WHY ARE THEY COMING?

While the mid-Industrial dream of California living fades due to climate disasters, high cost of living, and unstable politics, the Lone Star shines brighter every year. Data show that Texas is rife with affordable, economically vibrant cities with business friendly policies and leaders. Most have lower crime rates, new housing, schools that are constitutionally mandated to provide standards of education, great food—not to mention cowboys—and all for much less than living in a coastal metroplex. The only trend to concern Texans at this point is the influx of buyers from other states driving up the housing costs in the many small towns that struggle to retain their romantic and historical ambiance.

EVEN THE NEW YORK TIMES DOESN'T DENY THE ATTRACTION, AS ONE COLUMNIST SAID IN NOVEMBER, "THERE ARE LOTS OF PLACES IN AMERICA WITH JOBS AND LOWER CLIMATE RISKS, OR JOBS AND RACIAL DIVERSITY, BUT IF YOU WANT ALL THREE, TEXAS WILL TAKE CARE OF YOU BEST."

Given all these factors, there is no indication the Texas migration will slow any time soon. The only challenge that remains is the lack of inventory for homes priced under $300,0001. Despite the lack of inventory and supply chain shortages, the state's diverse and expanding economy, favorable business policies, and steady population growth support a favorable outlook for years to come.

1 Texas Real Estate Research Center