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Texas attracts new residents not just from California but across various states

M. N. Tirado / 8 months ago

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Debbie Neuberger SVP, Customer Care | realtors.com

Texas continues to draw large numbers of new residents, and they aren’t coming just from California.

Newly released one-way trip data from U-Haul shows that, in the first half of 2024, the largest Texas cities drew new residents from throughout the region.

In Houston, for example, Louisiana was the top origin state for U-Haul movers, with New Orleans also ranking as the No. 1 out-of-state origin metro for the period.

In the Dallas-Fort Worth metropolitan area, Oklahoma, Florida, and Louisiana were the top three origin states for movers. Oklahoma City was the top out-of-state origin metro, followed by Denver.

In both San Antonio and Austin, the most common origin state was California, a testament that the “Texafornia” trend continues, with thousands of Californians relocating to the Lone Star State.

But in San Antonio, Phoenix was the top out-of-state origin metro. Los Angeles took the top spot in Austin, which remains a popular moving destination for Californians.

There are limitations to the U-Haul list, which shows only rankings, not raw numbers of movers. As well, the rankings don’t include all movers—just those who rented a U-Haul. Still, the list shows how Texas continues to draw new residents from a variety of cities.

Movers are fueling Texas population growth

Texas, which is the second-largest U.S. state with a population of about 30 million, has been growing rapidly for decades.

From 2000 to 2020, the state’s population increased by 40%, or about 8.3 million—the largest absolute population increase of any state over that period—according to census data. Only Nevada, Utah and Idaho grew faster on a percentage basis during this period.

Over those two decades about half of Texas’ population gain resulted from natural increase—or births outpacing deaths. Roughly a third came from net domestic migration—or more people moving in from another state than out. The remainder was from net international migration.

Starting in 2020 COVID-19 pandemic appears to have turbocharged domestic migration to Texas—which has outpaced natural increase as state’s top driver of population growth according to Texas Demographic Center.

Census data shows that from July 2020 to July 2023 nine of ten fastest-growing cities in country were in Texas The Texas cities in top ten were all suburban communities on outskirts major metro areas their growth fueled by outward sprawl

Typical was Celina on far northern edge Dallas metro area From 2020 to 2023 Celina’s population increased by 143% to 43 ,317 up from17 ,808 three years prior

Why are people moving to Texas?

Economic growth lower tax burdens and lower cost living in Texas are typically cited as main factors driving state's population growth

Relative home prices often provide some clues about why people are moving—and wherefrom

In San Antonio for instance median July list price $350 ,000 or $185 per square foot is far below $528 ,000 or $275 per square foot seen Phoenix top out-of-state origin city for San Antonio first half year

Meanwhile Houston's median list price $375 ,000 somewhat higher than $329 ,000 seen top origin city New Orleans

But Houston's price per square foot $177 comes below $179 New Orleans suggesting mover could sell Big Easy get more house buck Houston

That trend doesn’t always hold—Oklahoma City top U-Haul origin city Dallas-Fort Worth has significantly lower home prices than its Texan counterpart However it does help explain enduring popularity Austin most expensive major city Texas as destination people fleeing California Austin's median July list price $540 ,000 eye-watering compared with prices other major metros Texas But someone moving Los Angeles Austin home prices would seem bargain compared city's $1 .2 million median list price

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