Californians Fleeing To Texas Are Fueling Lone Star State Housing Boom

TEXAS — Californians moving to Texas are helping fuel the Lone Star State’s growing housing market, according to a recent report from Realtor.com.

More than 1 in 4 people shopping for homes in Texas are from out of state, the real estate website reported, adding the two biggest sources of immigration to Texas are people relocating from California and international migrants.

"Residents are attracted to Texas first and foremost for its affordable housing, followed by its favorable climate and abundant jobs,” Realtor.com CEO Damian Eales said in a news release about the report. “This has put Texas on a path to potentially become the largest state by the year 2045.”

Texas was the No. 1 state for new house permits in 2024, accounting for 15 percent of the country’s total, according to the website, which noted that in the last two years the state's share of new builds priced under $350,000 has increased. Shares of new builds between $350,000 and $750,000 as well as those between $750,000 and $2 million have both fallen.

At $360,000 as of December 2024, Texas’ median listing price was about $40,000 below the national median, according to Realtor.com, which added that a typical monthly housing payment for the state was $2,100, assuming a 10 percent down payment.

Median asking rents for zero- to two-bedroom units in major Texas metropolitan markets have consistenly been below average rent in the nation’s top 50 markets, the website reported.