Why Texas is Different

Why Texas is Different


Why are so many Americans moving to Texas than any other state?



Recently called 'America's America' by  political pundit Marshal Wittman, Texas is a place to go for a fresh start. Folks are flocking to Texas for more than just great food, music and diverse culture. Tyler Cowen's article in Time Magazine, "Why Texas is our Future" explains a number of reasons why all roads lead to Texas.

Forbes magazine recently named three of Texas cities as the fastest growing cities in America, it's no wonder people are moving to the area. Several reasons can explain this migration to Texas.

The major economic forces that are reshaping the economy in the United States have a big impact on the economy as a whole. As a result Americans are seeking more affordable places to live, work and do business.

Cowen's article breaks it down even further into a list of specific reasons which are summarized below:

What is causing the Move to Texas?


1. Everyone's moving there

Migration to Texas is up at over 100,000 people moving to Texas in 2012 alone, The US Census Bureau says that over 1 million people have moved to Texas since 2000.

2. Middle Income is Disappearing

The middle income job is disappearing while at the same time the middle income lifestyle is becoming more expensive. Three components middle lifestyle expenses are health care, college and housing. Texas has an abundance of affordable housing and the cost of living is less. Texas is also creating jobs at the low to mid end of the income spectrum.

3. Automation

One of the factors impacting middle income jobs is automation and this is expected to increase. Cowen goes on to say 47% of jobs in the US are vulnerable to automation - everything from drones delivering pizza to driverless cars, to automated fast food attendants.

4. Skills Gap

Newer jobs created by automation and changes in business technology may require less manpower but also require more skills, which leave the middle income earner short and shifts job growth to very highly skilled jobs to very low skilled jobs.

So, Why is Texas Different?


1. Cheap Land, Cheap Houses

Its not just the blubonnets. Housing is bigger and cheaper in Texas. While the average home in Brooklyn NY costs over $500,000 and may not even be single family and is lacking in updated amenities and mechanicals, a home in Houston averages at $226,224 (Jan 2014 HAR MLS Stats)

2. Cheap living generally

The cost of living in general is cheaper, from gas to groceries, taxes, and the cost of labor. You can make less in Texas and live well and still have more in your pocket at the end of the day.

3. Jobs

Employment is on the rise and unemployment is at a low. Texas gained 255,300 non-agricultural jobs from Dec 2012 to Dec 2013, this reflected an annual growth rate of 2.3% compared to the national average of 1.6%

You can download a copy of the Texas Real Estate Center at A&M Monthly Review of the Texas Economy here.

4. Low Taxes

Texas has no state income tax . People are moving to Texas because it is a low cost, low tax state to live in comparatively.


Credit: Tyler Cowen Time Magazine Article: Why the Lone Star State is our Future; HARMLS Report Jan 2014; Texas Real Estate Center at A&M

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