This is Why So Many People Are Moving to Texas

According to a recent Grow Acorns report, Texas was the most moved to state in 2020 after Florida.

Of the nearly 9 million Americans who relocated in 2020, a big amount of them moved to Texas says new analysis from Move.org, which found the Lone Star State was the No. 2 most moved to in 2020, right below Florida.

So why are so many people packing their bags for Texas?

According to Kelsey Morrill, business development director at Amazing Spaces, Texas has a lot to offer. She has said: “The weather is amazing, the food is exceptional, and the people are friendly. It’s easy to feel at home here.”

Texas has also been attracting more tech companies like Tesla and Silicon Valley entrepreneurs like Oracle and Hewlett Packard.

As of November, 35 companies had relocated to or opened new facilities in the Austin area in 2020 alone, according to data from the Austin Chamber of Commerce.

Moving company Atlas Van Lines also found that Texas was a hot destination in a study of 65,000 interstate and international moves in 2020.

It found that Texas was an “inbound” state, with more households moving in (5,117) than out (4,098). In all, about 55% of the moves in Texas were people entering.

One reason why many may be heading to the state is because homeownership is also more affordable. The median home there costs $228,250, according to Zillow, while the national median is $272,450.

There are also no state income tax. Groceries, utilities, and transportation all tend to cost less as well, according to Best Places’ Cost of Living index. Texas scores 93.9, while California scores 139.9 and New York scores 120.5 on a scale where the national average cost of living is 100,

“Taxes are big,” says Morrill. “I couldn’t believe the difference removing state income taxes made.”

“For us, we were surprised to discover that the sales and property tax is the same as where we lived in Illinois,” she says. “We were able to come out even further ahead in Texas with the lack of income tax.”

If you’re ready to take the plunge to Texas, or anywhere else, Autumn Lax, CFP in the Wealth Builder division of Drucker Wealth Management had this to say “Research the place you are looking to move, and start estimating how cost of living might change. Set aside the [amount of] money you anticipate you will be paying each month, so you get a feel for what that’s like before the move.”

“There are so many variables when it comes to moving, whether you’re going cross-country or down the street. Make the most out of your move by getting your finances in order early and doing adequate research. Then you’ll have more confidence heading into this next chapter in life,” she added.