According to U.S. Census data, around 80,000 people per year have moved from California to Texas since 2018. Although pandemic data is still being collected, it appears as though that number will increase over the coming years.
But why are Californians moving to Texas? What does Texas have that California doesn’t?
Let’s take a closer look at the causes behind this mass relocation. Then we’ll look at a few ways in which Texas real estate brokers and investors can capitalize on the migration.
Why Californians Are Moving to Texas
Ask any California transplant in Texas why they made the move. You may hear personal reasons like family. But you’ll also hear lots of practical economic reasons. Among the most common reasons people give for moving from California to Texas are:
- Low cost of living: California is among the most expensive states in the country, with a 2021 cost-of-living index of 137.5 (with 100 being the nationwide average). Texas, on the other hand, scored 92.3.
- More space: The population density in California was 254 people per square mile in 2018. Texas has less than half that density with just 110 people per square mile in 2018.
- No state income tax: High-income earners in California can pay up to 13.3% of their income in state income taxes, while Texans pay no state income tax.
These reasons have been drawing Californians to Texas for years, but the 2020 COVID-19 pandemic kicked the migration into high gear.
Pre-pandemic, many workers were “stuck” in California because of their employment. Most white-collar workers were required to commute to the office most days of the week. But then the pandemic showed that many office workers can efficiently work remotely from anywhere in the world. Suddenly, Texas became accessible to people employed in California.
How Real Estate Brokers and Investors Can Capitalize on This Migration
If you’re a Texas real estate broker, agent, or investor, you’re in a golden position to capitalize on this relocation trend. You just need to know how to reach out-of-area buyers and renters with properties that meet their needs.
Here are three ways to do just that.
1. Use Social Media and Targeted Ads
Ads through social media sites like Facebook and Instagram allow you to tailor your ads to certain demographics. For example, you can create a social media ad specifically for Californians, explaining the benefits of moving to Texas, and then set your ad to show only in Californians' feeds.
You could also create Google ads so that your website is among the top search results when people search for homes in Texas.
2. Create Localized Content Marketing
Content marketing (most often used in blogging) is all about reaching your audience by providing useful and relevant information. When you create a blog post on your website, you’re telling search engines that you have relevant information on a topic that’s important to users.
Blogging about topics specific to your local market gives you less competition than blogging about more general topics. Try topics such as “Dallas real estate market update” or “best neighborhoods in Austin” to drive more traffic to your website.
3. Find Off-Market Deals for Your Buyers or Your Portfolio
With Texas real estate so hot, finding off-market deals is among the best ways to attract buyers and renters. Once a listing hits the MLS, everyone has access to it, and it becomes substantially harder to secure that home.
Finding off-market deals is easy with PropStream’s search tools. Not only can you filter your property search to find properties in distress (due to circumstances like divorce, bankruptcy, or pre-foreclosure), but you can also find properties in pre-probate and even automate the updates to your lead lists so you never miss a potential deal.
The ability to locate off-market deals sets you apart from other brokers or investors. Texas brokers and agents have the opportunity to prove their worth to their out-of-area buyers by providing a head start on new listings before they hit the market. Real estate investors can get deals by purchasing off-market homes with minimal competition, then marketing those homes to renters from outside your immediate market. When you know how to find off-market deals, you can help all those Californians enjoy a smooth move to Texas!