Millennials Are Saving $1 Million by Leaving California To Buy Homes in Texas
The cost of living in California has become uncomfortably — and often impossibly — pricey. According to RentCafe, the cost of living in the Golden State is 39% higher than the national average. The average cost of a home in California is $737,900, according to Zillow. To beat the high prices, many people are checking out of California and buying homes in Texas instead. There, the cost of living is 8% lower than the national average, according to RentCafe.
According to USA Today, the majority of people moving from California to Texas are millennials, who make up 46% of relocators. Millennials who moved to Texas in 2021 had an average household income of $114,000 per year — 21% more than what millennials make at a national level ($94,000 per year).
Going from California to Texas could save you up to $1 million. Here’s how.
Cost of Home Ownership
As noted, the average cost of a home in California is $737,900. In Texas, the average cost is $302,333, according to Zillow. Which part of California you are leaving, and which city in Texas you’re relocating to, factor in significantly. For example, you’ll see even more astounding savings if you move from San Francisco, where the average cost of a home is $1,273,464, to Dallas, where a home costs $314,185. That’s nearly a million dollar savings in itself.
USA Today notes that the difference in home prices between San Mateo county in California and Travis county in Texas is especially profound, at 243% — providing homebuyers a savings value of $1.3 million, on average.
Cost of Renting
The cost of renting a home in Texas is also substantially cheaper than it is in California. According to Zillow, the average rent in the Golden State is $2,900; in Texas, it’s $1,973. That’s very close to savings of $1,000 a month, or $12,000 a year.
Cost of Utilities
Factoring into the overall cheaper cost of living in Texas is the relative affordability of utilities. The average cost of utilities (internet, electricity and water) in Texas is $199.55 per month, according to Moving Waldo. In California, the price of utilities is $493.00 per month.
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