Why Are People Moving to Texas? 5 Reasons Behind the Boom

Why are people moving to Texas? Jobs and economic opportunity top the list, but they're far from the only draw. With relatively abundant housing, no state individual income tax, and a wide variety of lifestyles, it's easier to see the appeal. In fact, the U.S. Census Bureau estimates Texas added about 391,000 residents between July 2024 and July 2025 — the largest numeric population increase of any state, with Dallas-Fort Worth, Houston, Austin, and San Antonio all ranking among the 10 U.S. metro areas with the largest population gains during that period.

There's no single answer as to why people are packing up and heading to Texas. Some are following jobs, some want more housing space, and others are drawn by lifestyle or tax structure. In this article, we’ll explore the most common reasons people are moving to Texas and answer your top questions on the subject.

Why Are People Moving to Texas? Top 5 Reasons

From booming job markets to lower costs of living, here's a breakdown of the top five reasons people are making the move to the Lone Star State.

Manufacturing, energy, aerospace, and life sciences are just some of the target industries in the Lone Star State.

1. Jobs and Economic Opportunities Are a Major Draw

If you're wondering why people are moving to Texas, jobs are a good place to start. The state has one of the largest and most diverse economies in the country. As of August 2026, Texas had over 14.4 million nonfarm jobs. Texas isn't simply an oil-and-gas economy anymore. The state's target industries include advanced manufacturing, energy, aerospace and defense, semiconductors, and life sciences — and it's home to the Texas Medical Center, the world's largest medical complex.

Austin's Job Market Keeps Expanding

The Austin-Round Rock-San Marcos metro had about 1.41 million nonfarm jobs in August 2026, up 1.2 percent year over year. The metro area added nearly 54,000 new residents between July 2024 and July 2025. And Austin’s population surpassed 1 million for the first time in the city’s history.

Dallas Is Becoming a Major Business and Finance Hub

Wall Street itself isn't relocating, but Texas is building a substantial financial-services presence of its own. Dallas-Fort Worth (DFW) had about 4.4 million nonfarm jobs in August 2026, with strength in trade, finance, manufacturing, and health care. The metro reached almost 8.5 million residents in July 2025, up more than 123,000 from the year before. DFW is a major hub for Charles Schwab, Fidelity, and JPMorgan Chase, with new corporate campuses recently completed or underway for Goldman Sachs and Wells Fargo. And financial activity keeps expanding: Dallas is now home to the Texas Stock Exchange, a new national securities exchange that began full production trading in July 2026.

2. Texas Keeps Adding Residents

Texas had an estimated 31.7 million residents as of July 2025, up 8.8 percent from 2020 — and gaining, not losing, at the fastest numeric clip in the country (the state also ranked fourth nationally in percentage growth, at 1.2 percent). Several major metros are doing the heavy lifting:

^{Source for table: Census.gov}

More residents can mean more demand for homes, schools, health care, and other services, which can support more jobs — a loop that keeps the state growing. But growth isn't automatically a win; fast-growing communities also deal with traffic, infrastructure strain, and rising housing costs. If you're considering moving to Texas, it's worth researching the specific metro or community rather than relying on statewide numbers alone.

Compared to national average home values, Texas homes offer more bang for your buck.

3. Housing Can Offer More Affordability

Texas isn't uniformly inexpensive — Austin, Dallas, Houston, San Antonio, and smaller communities all have different markets — but statewide numbers show why it looks appealing next to pricier coastal states. As of September 2026, the average home value in Texas sits around $299,400, down 1.6 percent year over year, compared with a national average of $368,700. Renters in Texas have options too, with an average rental cost of about $1,450 per month for all rentals. Of course, the size of the apartment will affect the cost, with studios going for closer to $1,100 and 3-bedroom apartments averaging $2,000.

Those are statewide averages, not a quote for any specific city, so treat them as a starting point. Should you move to Texas because you're tired of paying a premium for a tiny apartment? It's worth comparing specific cities (and even neighborhoods) rather than state averages — our guide to the best places to live in Texas can help narrow things down.

4. There's No State Individual Income Tax

Texas is one of the nine states that doesn’t impose an income tax — Texans still pay federal income taxes, but nothing extra at the state or local level. That said, no income tax doesn't mean no taxes: Texas has property taxes levied by counties, school districts, cities, and special-purpose districts, so if you're comparing Texas with another state, look at the full financial picture — housing costs, local property taxes, insurance, and utilities — not just the state income-tax line.

5. There's a Texas Lifestyle for Just About Everyone

Texas is enormous — second only to Alaska in total area — which means an unusually broad range of environments packed into one state. You can settle among the limestone canyons and spring-fed swimming holes of Hill Country, the humid pine forests of East Texas, the wide-open, big-sky plains of the Panhandle, the Chihuahuan Desert mountains near Big Bend, or the subtropical Gulf Coast — all without leaving state lines.

With Texas catering to such a wide variety of lifestyles, the question shifts from "Should I move to Texas?" to "Where should I move to in Texas?"

• If you’re chasing a walkable downtown vibe and live music scene, Austin is where it’s at.
• If rich Texas culture is what you’re looking for, consider living in El Paso.
• If you like the sound of Space City vibes and easy Gulf Coast access, look to Houston.

Over 390,000 people moved to Texas in 2025, so it’s safe to say that making the move is a good idea for many.

FAQs — Why Are People Moving to Texas?

Q: Why is Gen Z moving to Texas?

A: Gen Z movers are leaving the most expensive cities and flocking to cities with two things: Plenty of job opportunities and thriving social scenes. San Antonio has attracted the most Gen Zers, but Austin and Dallas aren’t far behind (all three cities earned a spot in the top five Gen Z destinations). And the jobs are real: Austin has tech and creative industries, Dallas-Fort Worth has finance, logistics, and health care, and San Antonio has military, health care, and cybersecurity.

Q: Is $20 an hour good in Texas?

A: The average hourly compensation across Texas is $24.99, which means that $20 an hour would fall on the low end. However, Texas is a big state, and the cost of living varies from one city to the next. In Wichita Falls, for example, a single adult with no children would only need to earn $18.92 an hour before taxes to cover basic living expenses. In Plano, however, they would need $26.26 an hour before taxes to cover basic needs.

Q: Would moving to Texas be a good idea?

A: Over 391,000 people moved to Texas in 2025, so it’s safe to say that making the move is a good idea for many. So, why are people moving to Texas? It almost certainly has something to do with the strong job markets, diverse industries, relatively abundant housing, outdoor recreation, vibrant culture, and no individual income tax at the state level.

Moving to Texas With PODS

Once you've figured out where in Texas you want to land, there's still the matter of getting your stuff there. Make moving to Texas flexible with PODS portable moving containers. Have a container delivered right to your driveway for convenient loading on your own schedule. One month’s storage is built into the cost of every move, so you can take your time getting settled. PODS can also refer you to local packing and loading services if you'd rather get help with the heavy lifting.

Visit PODS online for a free local moving quote or call 877-350-7637 for long-distance moving.

Editor’s note: For ease of reading, monthly rental prices were rounded to the nearest $25 and home values were rounded to the nearest $100.

_{*This content was created with the assistance of artificial intelligence. It was then fact-checked, proofread, and edited by the real-life intelligence of the PODS Blog team. PODS however does not warrant the completeness or accuracy of any information contained in this publication and disclaims any liability for reliance upon the content herein.}

(Source for image featured at top: Xiaoqian Shen via Unsplash)