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City Comparisons
Every week, people are packing up from California and landing in Texas — and the numbers don't lie. Nearly 990,000 Californians relocated to Texas between 2018 and 2022 alone. But here's what most relocation articles won't tell you: this isn't just a financial decision. It's a full lifestyle shift. And while Texas absolutely wins on several fronts, it's not the slam dunk it looks like on paper.
Let's break it all down — the real numbers, the hidden costs, and the lifestyle tradeoffs — so you can make a decision that actually fits your life.
On the surface, the housing comparison is dramatic. California's median home price sits around $700,000+, while Texas comes in at approximately $298,000. That's not a small gap — that's life-changing money.
But here's where things get complicated: property taxes.
California's average property tax rate is 0.76%. Texas clocks in at around 1.1% — and that number can go significantly higher depending on where you live. Why? Because Texas has no state-level property taxes. Every local government — county, city, school district — sets its own rate. That means the tax burden varies dramatically from one ZIP code to the next, and there's no universal cap to protect you.
On top of that, many Texas communities — especially newer developments — layer on additional assessments:
These aren't hidden fees exactly, but they're easy to overlook if you're just comparing sticker prices. A home that looks affordable at $350,000 in a master-planned community outside Austin could carry an effective tax rate of 2.5% or more when you factor in MUD and PID assessments. Do the math before you fall in love with the listing.
Beyond housing, Texas is genuinely more affordable in day-to-day life:
That said, if you're moving specifically to Austin, temper your expectations a little. Austin has seen a significant rise in its cost of living over the past several years, and some transplants — particularly those coming from the Bay Area — compare the lifestyle cost to San Francisco. It's still generally lower, but the gap has narrowed.
The bottom line on affordability: Texas can be more affordable, but it's not always as cheap as it seems. Run the full numbers — property taxes, HOA fees, MUD/PID assessments, and lifestyle costs — before assuming you're getting a deal.
Affordability might be what gets people curious about Texas, but the job market is what seals the deal. Texas was ranked the top destination for California movers in 2022, according to the Texas Real Estate Research Center — and that momentum has only grown.
Austin has transformed into a legitimate tech hub. Apple, Amazon, Google, Samsung, and Realtor.com have all established major presences here. According to Ed Latson, CEO of Opportunity Austin, the region added more jobs, population, and GDP than any other major metro from 2018 to 2023. In the last five years alone, 100,000 new jobs were created.
Houston, long anchored by oil and gas, has diversified into healthcare, aerospace, and renewable energy. The Texas Medical Center — the largest medical complex in the world — employs over 100,000 people and sees 10 million patient encounters annually. Companies like Enol North America are also investing in large-scale solar and battery storage projects in the region.
Dallas is a powerhouse for finance, banking, e-commerce, real estate, and logistics. It's home to 24 Fortune 500 companies — and that concentration of corporate headquarters creates opportunity across industries at every level.
Since 2019, over 200 companies have left California for Texas. Some of the biggest moves:
Meanwhile, California's job market has struggled. In just one year, job openings in California dropped 30%, and the state's unemployment rate rose to 5.3% — one of the highest in the nation. That contrast is pushing more professionals to look east.
Here's something people don't talk about enough: people are also moving from Texas to California. Texans are heading west for California's natural beauty, job opportunities in tech and entertainment, and salary growth. This two-way migration is reshaping the culture of cities in both states.
Austin and Dallas in particular have absorbed a significant influx of Californians, influencing everything from restaurant concepts to community culture to real estate demand. And Texans moving to California bring their own values and perspectives into that already-diverse population. Neither state is operating in a cultural vacuum — they're genuinely influencing each other.
California's natural beauty is undeniable — the coastlines, forests, mountains, national parks like Yosemite, Joshua Tree, and Big Sur. But that beauty comes with real environmental risk: wildfires, droughts, and earthquakes. And those wildfires aren't just a safety concern — Vox has reported that increasing wildfire damage has accelerated gentrification and displacement in cities like Los Angeles.
Texas isn't without its own environmental challenges. Hurricanes, extreme heat, flooding, and yes — wildfires in certain regions — are all part of the picture. What makes Texas appealing to many who are risk-aware is the lower cost of rebuilding and generally more predictable disaster management infrastructure.
One thing that's true across the board: insurance costs have risen significantly in both states. Factor that into your housing budget, wherever you land.
Here's the real question: how much life does your money buy you?
In California, if you can afford the cost of living, the lifestyle is extraordinary. You can surf in the morning, ski in the afternoon, and hike in the evening — all in the same day. The entertainment infrastructure (Hollywood, world-class museums, a legendary music industry) is unmatched. But for many residents, the high price of simply existing in California makes it hard to actually enjoy the lifestyle they moved there for.
Texas offers a different equation. You get more space, lower costs, and — depending on where you settle — a remarkably rich cultural life. Austin is a prime example:
For outdoor lovers, Texas has more to offer than people expect. Caprock Canyon State Park, home to Texas's official bison herd, was recently named one of the most beautiful camping spots in the country. The Texas Hill Country delivers rolling vineyards, wildflower trails, and clear rivers perfect for kayaking and tubing — all without the California price tag.
Both states offer incredible quality of life. The difference is what you have to pay to access it.
This is the section that makes people uncomfortable, but it matters — because policies shape how you live your daily life, not just how you vote.
California is known for progressive policies, strong public services, and extensive environmental protections. That comes with the highest personal income tax rate in the nation (13.3% for top earners), and over 400,000 regulations that impact everything from businesses to housing construction. Many residents value these programs and protections deeply. Others feel the regulatory burden stifles growth and economic freedom.
Texas takes a markedly different approach: no state income tax, fewer business regulations, and a cultural emphasis on personal responsibility and economic freedom. That environment has helped Texas build the second-largest state economy in the U.S. — a $2.7 trillion GDP, larger than the entire economy of Brazil.
The tradeoffs are real, though. Texas offsets the lack of income tax through higher property taxes and sales taxes. And the state's conservative policies may not align with your personal values on social issues, environmental policy, or public services.
Neither system is perfect. This comes down to which tradeoffs fit your priorities.
Both California and Texas offer world-class universities. California has Stanford and the UC system. Texas counters with the University of Texas, Texas A&M, and Rice University — all nationally recognized institutions.
At the K–12 level, both states face challenges:
The honest truth: school quality in both states is largely determined by the specific school district, not the state as a whole. If education is a priority in your relocation decision — and it should be — research individual districts thoroughly before you commit to a neighborhood or ZIP code.
This comparison isn't about declaring a winner. It's about helping you figure out which state actually fits your life.
What's clear is that Texas is no longer just a cheaper alternative to California. It's become a legitimate destination in its own right — for jobs, culture, and quality of life. The move is real. The question is whether it's right for you.
Expert in: City Comparisons
Austin real estate expert helping families find their perfect home in the Texas Hill Country.
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