The latest federal census reports an upward spike in population in Texas with no sign of slowing down. It’s estimated that Texas saw a 1.1% increase in population between the months of July 2020 and July 2021, accompanied by heavy corporate relocation. The Lone Star State predicts this trend to continue in the coming years.
Roughly 1 in 10 of these domestic relocations made the move from the Golden State of California, marking this as the second time in history, since 1900, for California to see a drop in population. Although California still leads as the most populous state within the United States, the drive to move from the Golden State remains and is expected to grow.
Why the big move to Texas, the Lone Star State?
Texas is business-friendly and an attractive location for corporate and small to mid-size companies. A growing tech and telecommunications hub, Texas rewards corporations with pro-business regulations and a beneficial tax situation.
With a top-ranking corporate tax environment, Texas delivers several advantages for businesses, such as sales tax exemptions, local funding and cash grants, no corporate income tax, and franchise tax exemption for solar energy sellers, manufacturers, and installers.
Out-of-state people, particularly in areas such as California, are drawn to the lower cost of living in Texas and the growing job market. Compared to areas like the San Francisco Bay Area and New York, Texans can stretch their dollar much further. Utility costs, housing, and consumer goods are generally less in Texas. This affordability can deliver a better way of life for many.
As more and more businesses make the move to Texas, people gain more accessibility to jobs. Many relocate to the Lone Star State for the abundance of career opportunities and higher wages in some industries, such as tech, telecommunication, and other skilled professions. For instance, Dallas residents, on average, receive $67,500 annually, while full-time workers in Los Angeles average $64,000 annually combined with a higher cost of living.
A Long Tradition of Migration and Growth
Texas is no stranger to worker migration and relies on this system to power its economy. Metropolitan areas see the largest boom with Austin centered as a high-tech hub. Steady growth brings big dividends to Texas and some unique challenges.
The Comptroller of Texas reports increased populations bring larger demands for housing, water, school, and transportation. Supply issues brought on by the pandemic and reduced inventory of lower-priced homes create some limitations for individuals and families in search of affordable housing.
But even with these challenges, Texas remains a primary destination for people across the United States and abroad. While states, such as California, anticipate continued loss of residents, Texas expects to carry forward its longstanding tradition of population and job growth, with a projected increase to roughly 47.3 million people by the year 2050. Its lower overall cost of living and business-friendly environment will continue to draw corporations and people looking for better opportunities.