According to the U.S. Census Bureau, five of the 15 fastest-growing large cities over the past decade are in Texas.
As for numeric change, cities in Texas are among those that have added the most people this decade. Collectively, Houston, San Antonio, Austin, Fort Worth, and Dallas increased by almost 933,600 people. This equals 39.5% of the roughly 2.4 million increase by the top 15 numeric gainers.
Why the migration to Texas?
A recent article on Yahoo! Finance highlighted the mass exodus happening right now away from overcrowded, high-tax, regulatory-heavy states like New York and California to low-tax, business-friendly states like Texas that offer plenty of affordable housing in suburban and rural locations and more “freedom” as many migrants and businesses describe it.
In the same Yahoo! article, Ari Rastegar, founder of Rastegar Property Company, an Austin-based real estate investment firm, joked that “New York and California are the lands of the flee, and Texas is the land of the free,” The statistics back this up.
Since March, many city-dwellers who saw their incomes shrink from the fallout of the COVID-19 pandemic started looking elsewhere for more affordable housing offering more space for less money in states with more regulatory and tax-friendly states. Many of these migrants were naturally drawn to the South – with a particular interest in Texas.
It’s not just workers fleeing New York and L.A. for Texas.
Big companies are moving massive operations to the Lonestar state as well. Less burdensome corporate taxes and regulations in Texas drew huge tech companies like Tesla, Oracle, Facebook, Apple, and Google – along with their employees – to Austin, Texas.
Many independent contractors from California who saw their livelihoods killed by the gig economy destroying Assembly Bill 5 (AB5) are also relocating to Texas.
Californians, in particular, were anxious to get out by year-end – fearing retroactive tax increases California might adopt in 2021 that would be retroactive to the start of the year. So, it seemed like Californias were not only fleeing physical fires in 2020 but they were also fleeing the economic and political dumpster fires created by politicians hostile to businesses and taxpayers.
Why Houston for living and investment?
By Population, Houston is the fourth largest city in the U.S, and according to the Census Bureau, Houston grew by 10.7% between April 2010 and July 2019. Furthermore, the city is expected to see another population surge between 2020 and 2029; about 1.2 million more.
It’s not hard to see why investors are drawn to Houston as there will need to be a corresponding increase in housing and businesses to meet this impending population boom.
Houston has much to offer migrants from other states. A booming job market combined with low cost-of-living and sunny weather year-round make Houston a great relocation choice.
According to Life Storage Blog, here are the top reasons why people are moving to Houston:
- Living in Houston is more affordable than in many other major metropolitans.
- It is possible to buy a house in Houston on a modest income.
- The population in Houston is booming thanks to the job market.
- You can bring your car when you relocate to Houston.
- Students have access to all of Texas’ top Universities.
- The Houston food scene is legendary.
- Self-care is a significant part of Houston’s culture.
- There are thousands of things to do in Houston.
- Outdoor activities are enjoyable year-round.
- Houstonians are very neighborly.
For the same reasons that people are moving to Houston, investors are moving their capital there as well – in anticipation of the population growth.
The floodgates have been opened in Texas. Businesses and people are seeking refuge in among its friendly business and social environs. According to workers and businesses; apparently, Houston is one of the remaining bastions of freedom where businesses can operate with little regulations and people can pursue work and keep more of what they make because of low taxes and cost of living.
And, because of all that it has to offer in terms of jobs, sports, arts, restaurants, and family activities, Houston is a particularly popular destination for out-of-staters as well as investors.
If there were ever a time to get in on the ground floor of an opportunity, now would be a good time and Houston would be a good place.
Kyle Jones is a co-founder and Key Principal of TruePoint Capital, LLC. Kyle is responsible for the company’s strategic planning, investment decisions, asset management, and overseeing all aspects of the company’s financial activities, operations, and investor relations.
Kyle obtained a Bachelor of Science degree from Texas State University – San Marcos, where he also played Division 1 Baseball.