Though Texas has been a magnet for migration over the past decade due to plentiful job opportunities, an accommodative business environment and a relatively low-cost of living this process has accelerated during the pandemic.
Texas received 174,000 migrants in the five quarters following the onset of COVID up from 109,000 the previous five quarters. The top source of inbound migrants was California with more than 60,000 migrants, followed by New York with approximately 17,500.
“Cities such as New York, Los Angeles and San Francisco host a disproportionately high share of jobs that offer the option to work from home (finance, media, tech),” explained the report. “These metros also have the highest cost of living among all of the nation’s major cities. Sizable portions of their residents moved to other, more affordable metros as workers took advantage of newfound mobility.”
The pattern of migration has been particularly from high-cost coastal metro areas such as New York, Los Angeles and San Francisco to the suburbs of Texas metro areas such as Dallas Fort Worth and Austin.
“The in-migration from the crowded coastal cities to Texas metros has brought additional workers and their talents, and firms and their investment, which have collectively fueled the state’s sustained economic growth,” notes the report. “But with these gains comes some pain. The large inflow of people has likely contributed to rising apartment rents and home prices, especially at a time of shortages in construction materials and labor.”