Californians are flooding to Texas and bringing booming business with them.
Californians are leaving and flooding to other states, Texas being a big taker.
More than one in 10 new Texas residents who moved from elsewhere in the U.S. in the past three years are from California.
Data from Placer.ai shows that from July 2019 to July 2022, 11.1% of new Texas residents originally originated from California, the most of any other state.
What’s more, companies like Charles Schwab, Tesla, and Oracle have relocated their headquarters from the Golden State to the Lone Star State.
Why it’s important
Not only are Californians coming to Texas fast, but they are causing business sales to soar.
In-N-Out Burger, a California burger chain, first opened in Texas in 2011. Since the influx of new California residents, In-N-Out’s business has seen a big boost, according to Placer.ai’s data. In July, In-N-Out visits were up 24.4% in the Dallas area compared to three years before.
“People are moving to Texas primarily for economic reasons. When you look at the West Coast compared to Texas, there’s a gigantic difference in housing prices. That is by far the biggest driver,” says Cullum Clark, director of the Bush Institute-Southern Methodist University Economic Growth Initiative.
Not only that, but Texas does not have an income tax, and California has one of the highest income tax rates in the country.