Why People are Fleeing California for Texas
California’s high housing costs
California’s high housing costs Housing – Despite California’s problems with on-going wildfires and earthquakes, this is not the reason Californians are fleeing. The culprit here is the sky-high cost of living and the ridiculous cost of housing. An online survey, performed last month by Edelman Intelligence, discovered 53 percent of Californians surveyed are contemplating fleeing, this is a 4% jump from 49 % polled a year ago. Millennials seem to be spearheading this rapid departure, in hopes of living a self-sustaining life away from their parent’s garage. Absurdly high housing prices are making it extremely difficult if not impossible for the millennials to fly out of the nest. Many of them believe other states like Texas is the land of “milk, honey, and jobs.”
Taxes are definitely hurting the upper-middle class. “There is also worry among those looking to retire. The high tax rates may force a change of plans. According to the Federation of Tax Administrators, in 2018, California led all 50 states with the highest top marginal tax rate of 12.3%. This is not including the additional 1% surcharge for those enjoying incomes of $1 million or more. With the new federal tax changes, there is a $10,000 cap for the property, state, and local deductions. We must ask how long middle-class California can endure this tax beating.
Home to a variety of industries, oil and gas is the largest, Texas also offers high paying jobs in other industries such as aeronautics, IT and computer-related technology, agriculture tourism, and energy. Site Selection Magazine has ranked Texas as the most business-friendly state in the U.S back in 2010. Ranked the most business-friendly state by Site Selection Magazine in 2010, Texas remains a land full of opportunity for those earnestly willing to come and take it. Texas with its booming employment opportunities is what makes this state appealing to so many people. young families, Millennial’s, and retirees who are suffering in California can find relief and prosperity here in Texas
Affordable Texas Housing
As housing costs continue to increase in California, Texas offers quite a bang for the buck. In cities like Corpus Christi, it is still possible to obtain waterfront property at a fraction of the price when compared to California. The average home price in Texas is $193,800, according to bestplaces.net. That’s much lower when you compare it to California, which is $548,600. Comparing these two numbers makes it a “no brainer” and is currently the fuel for the Californian departure.
Texas has no State Income Tax
On the other side of the coin, California has the highest state income tax next to New Jersey at 13.3%. Though Texas might have a higher property tax rate of about 1.9% vs California’s at about 1%, the sheer differences in home prices mean Texan’s still paying on average about $1,700 less in annual property taxes.
Texas has a lower cost of living
There is a vast difference when comparing the cost of living between the two states. Housing costs(as we discussed earlier) in Texas are 54% less than in California. However, to be prudent, we must compare all the other Usual expenses for both states to see how much money we could save by moving to Texas. For example, we know that entertainment costs are lower in Texas by 14%. The cost of food is also far less at 18%. You would save 8% on your health insurance by making the move. The list of advantage you gain by moving goes on and on.
Both states Texas and California share many similarities in culture and geography. However, when comparing housing, cost of living, Taxation, and job opportunities, it is certain that California can not hold a candle to texas, at least for now. Get started on the moving process by reading The ultimate guide to residential moving – everything you need to know.
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