Millennials lead pack in leaving California for Texas, study finds

Nearly 100,000 Californians left the Golden State for Texas in a single year, according to a June study by Storage Café, with Millennials leading the pack, followed by Gen Z and Gen Xers.

The data, compiled by StorageCafe and sourced from the U.S. Census American Community Survey and other federal agencies, shows that 98,000 people moved from California to Texas in 2023, an average of 262 people per day.

That accounts for 16% of all out-of-state newcomers to the state of Texas.

Housing affordability is a key factor behind the shift. Home prices in Texas are, on average, 63% lower than those in California. Rent is about 32% cheaper.

Millennials and Gen Z making the move typically have incomes above the Texas average. Approximately one-third hold at least a bachelor’s degree, and 27% work remotely.

Top destinations for former Californians include Austin in Travis County and Houston in Harris County, with each receiving more than 10,000 new residents.

Six of the top 10 California-to-Texas migration routes originated in Los Angeles County.

“I think the migration will continue steadily. The bubble has burst when it comes to what life can look like outside of California,” Soomin Kim, a realtor in Austin, Texas, and former Californian, said in a statement.

“With homeownership increasingly out of reach for most young families, many will look to how their peers are living in other states — especially through social media — and start to experience real FOMO. It might not always be Texas, but places like Florida, Tennessee, Idaho, Montana, and other states offer more affordability and space. The trend will continue, just not at the breakneck pace of 2020–2021.”

However, the influx of residents in Texas doesn’t come without consequences. According to the study, home prices have risen by roughly 86% statewide over the past decade.

However, in more in-demand areas, such as Dallas and Tarrant counties, the increases are even higher, with prices more than doubling, up 114% and 130%, respectively.

In total, California saw nearly 683,000 residents move out in 2023, the highest outbound migration in the nation, according to the latest available U.S. Census data cited in the report.

The complete study can be found here.