Moving to Texas in 2026: Everything You Need to Know
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Why People Are Moving to Texas
Texas has been the top destination for domestic migration in the United States for over a decade, and 2026 continues this trend with an estimated 450,000-500,000 new residents annually. The reasons are compelling and well-documented: no state income tax (saving high earners $10,000-$50,000+ per year compared to California or New York), a thriving job market across multiple industries, a significantly lower cost of living than coastal metropolitan areas, and a business-friendly regulatory environment that creates entrepreneurial opportunities unavailable elsewhere.
The financial impact of moving to Texas is dramatic. A family earning $200,000 in California pays approximately $13,000 in state income tax, while the same family in Texas pays zero. When combined with lower housing costs (median home price $380,000 in Texas vs $800,000+ in California), lower childcare costs, and generally lower consumer prices, the total savings can exceed $50,000 per year. This financial advantage explains why Texas attracts not only high-earning professionals but also retirees on fixed incomes, young graduates launching careers, and entrepreneurs seeking to stretch their capital further.
Beyond finances, Texas offers a lifestyle that appeals to a broad range of people. The state's sheer size means you can find virtually any environment: cosmopolitan urban living in Dallas and Houston, tech-forward culture in Austin, historic charm in San Antonio, beach living on the Gulf Coast, ranch life in the Hill Country, or quiet suburban communities with top-rated schools. Texas's cultural diversity, world-class dining, professional sports teams, outdoor recreation, and genuine hospitality make it a place where newcomers quickly feel at home.
Job Market: Industries by City
Key Insight: Texas real estate offers exceptional opportunities for buyers, sellers, and investors across four major metros. With no state income tax, strong job growth, and diverse housing options, the Lone Star State continues attracting residents from across the nation seeking value and quality of life.
Texas's economy is the second largest in the United States and would rank as the 8th largest in the world if it were a country. The state's job market is diversified across multiple sectors, each concentrated in specific metros. Austin is the state's technology hub, home to major campuses for Apple, Google, Meta, Amazon, Tesla, Samsung, Oracle, and hundreds of startups. The city's tech ecosystem generates approximately 15,000 new jobs annually with average salaries of $110,000-$140,000 for software engineers and $90,000-$120,000 for other tech roles.
Dallas-Fort Worth is Texas's financial and corporate headquarters capital. Charles Schwab, Goldman Sachs, JPMorgan Chase, AT&T, Texas Instruments, and dozens of Fortune 500 companies are headquartered or maintain major operations in the metroplex. DFW's job market is the most diversified in Texas, spanning finance, technology, defense (Lockheed Martin, Bell, Raytheon), healthcare, logistics, and telecommunications. Average professional salaries range from $75,000-$120,000 depending on industry and experience level.
Houston remains the energy capital of the world, but its economy has diversified significantly. The Texas Medical Center, the world's largest medical complex, employs over 100,000 people. NASA's Johnson Space Center and a growing aerospace sector (SpaceX, Boeing, Blue Origin) provide engineering and scientific opportunities. Houston is also a major port city, manufacturing hub, and international business center. San Antonio anchors its economy on military (Joint Base San Antonio is the largest military installation in the Department of Defense), healthcare, cybersecurity, tourism, and an emerging tech sector supported by UTSA's research programs. Each city offers distinct career opportunities, so matching your industry to the right metro is essential.
Cost of Living Overview
Texas's cost of living is approximately 8-10% below the national average, though this varies significantly by city and neighborhood. San Antonio and Houston are the most affordable major metros, with costs 12-15% below the national average. Dallas-Fort Worth aligns roughly with the national average, and Austin has become the most expensive Texas city, though it remains 15-20% cheaper than comparable tech hubs like Denver, Seattle, and the San Francisco Bay Area. The biggest savings come in housing and taxes, while groceries, transportation, and healthcare costs are close to national averages.
Housing is the most significant cost of living factor for most relocators. Median home prices in 2026 are approximately $520,000 in Austin, $420,000 in Dallas-Fort Worth, $340,000 in Houston, and $310,000 in San Antonio. For renters, average one-bedroom apartments range from $1,200 in San Antonio to $1,600 in Austin, while two-bedroom units range from $1,500 to $2,000 across the major metros. The absence of state income tax partially offsets Texas's relatively high property taxes (averaging 1.8-2.2% of assessed value), particularly for higher earners.
Utilities are a notable cost in Texas, primarily due to air conditioning needs. Average monthly electric bills run $150-$250 during summer months, with annual averages of $150-$180 per month. Texas's deregulated electricity market (in most areas) allows consumers to shop for competitive rates, which can save $300-$600 annually compared to fixed-rate utility markets. Other living costs to budget for include auto insurance (Texas rates are above average due to high traffic and weather claims), healthcare (costs are near the national average), and childcare ($900-$1,500 per month depending on the city and facility). Use our property tax guide to model your total monthly housing costs accurately.
Best City for Families
For families with school-age children, the choice of city often comes down to school district quality, safety, affordability, and access to family-oriented amenities. Dallas-Fort Worth leads in this category with the greatest concentration of top-rated school districts (Highland Park, Carroll/Southlake, Frisco, Prosper, Lovejoy, Allen, Coppell) at a range of price points from $350,000 to $2 million+. The metroplex also offers the most family-oriented suburban communities, with master-planned neighborhoods featuring pools, playgrounds, trails, and community centers as standard amenities.
The Austin area is an excellent choice for families who value outdoor recreation and a laid-back lifestyle alongside strong schools. Eanes ISD and Lake Travis ISD rank among the state's best, and neighborhoods like Circle C Ranch, Steiner Ranch, and Lakeway offer resort-style family living with hill country scenery, lake access, and extensive trail networks. Austin's entry costs are higher than DFW, but the lifestyle payoff is significant for outdoor-oriented families.
San Antonio offers the most affordable option for families, with excellent schools in Alamo Heights ISD, Boerne ISD, and North East ISD at price points $200,000-$400,000 below comparable Austin or DFW neighborhoods. San Antonio's rich cultural heritage, world-class zoo, theme parks, and family-friendly River Walk provide abundant activities. Houston families benefit from extraordinary diversity, the nation's best medical facilities (Texas Medical Center), and strong schools in Katy ISD and Fort Bend ISD at very accessible prices. Read our school district rankings for detailed comparisons.
Best City for Young Professionals
Austin is the clear frontrunner for young professionals, offering a unique combination of tech career opportunities, vibrant nightlife, world-famous live music, outdoor recreation, and a creative cultural scene that attracts talent from across the country. The city's downtown, East Austin, South Congress, and Rainey Street districts offer walkable urban living with an energy unmatched by any other Texas city. Austin's dating scene, social networks, and professional meetup culture make it easy for newcomers to build connections quickly.
Dallas is the top choice for young professionals in finance, consulting, corporate management, and sales. Uptown Dallas, Deep Ellum, the Design District, and Lower Greenville offer polished urban living with upscale dining, nightlife, and cultural attractions. DFW's lower cost of living compared to Austin means young professionals can build savings and wealth faster while enjoying a sophisticated urban lifestyle. The Dallas social scene is active and welcoming, with professional networking events, charity galas, and a thriving restaurant culture.
Houston appeals to young professionals in energy, healthcare, engineering, and international business. The Montrose, Heights, and Midtown neighborhoods offer diverse, culturally rich urban living at prices well below Austin or Dallas equivalents. Houston's food scene is arguably the best in Texas (and among the best in the nation), and the city's extraordinary diversity creates a cosmopolitan atmosphere. San Antonio is emerging as an option for young professionals seeking the lowest cost of living, particularly in cybersecurity, military-adjacent careers, and healthcare. The Pearl District and Southtown are driving a cultural renaissance that is attracting creative talent and entrepreneurs.
Climate and Weather
Texas weather is a topic every newcomer must understand. Summers are hot across the entire state, with temperatures regularly exceeding 100°F from June through September in Austin, Dallas, San Antonio, and inland areas. Houston's summers are slightly less extreme in peak temperature (mid-90s) but are brutally humid, with heat indices frequently exceeding 110°F. Air conditioning is not optional. Texas summers are best managed by embracing early-morning and evening outdoor activities, utilizing the state's abundant lakes and pools, and accepting that July and August are essentially indoor months.
Winters are generally mild, which is a major draw for relocators from northern states. Average January temperatures range from the high 40s to low 60s (°F) across the major metros, with only occasional freezes. Snow is extremely rare in the major cities (1-2 events per decade in Austin and Dallas, virtually never in Houston and San Antonio). However, the February 2021 Winter Storm Uri revealed Texas's vulnerability to extreme cold events, causing widespread power outages and infrastructure failures. The state has since invested in grid hardening and weatherization, but winter preparedness remains important for residents.
Severe weather is a reality in Texas. North and Central Texas (Dallas, Austin) are in the southern portion of Tornado Alley, with tornado season running from March through June. Large hail storms cause billions in property damage annually, particularly in the DFW area. The Gulf Coast, including Houston, faces hurricane risk from June through November. Flash flooding is the single deadliest weather hazard in Texas, affecting all cities, particularly during spring and fall rain events. Despite these risks, millions of Texans live safely and happily by staying weather-aware, maintaining adequate insurance, and following local emergency guidance. Texas's 300+ days of sunshine per year and mild winters far outweigh the occasional severe weather events for most residents.
Culture and Lifestyle
Texas culture is as diverse and expansive as the state itself. The stereotype of cowboys and cattle ranches, while rooted in genuine history, represents only a small slice of modern Texas life. Austin is a progressive, creative city known for live music (the "Live Music Capital of the World"), tech innovation, food trucks, outdoor recreation, and a fiercely independent spirit embodied by the "Keep Austin Weird" ethos. Dallas combines Southern hospitality with cosmopolitan sophistication, offering world-class arts institutions (Dallas Museum of Art, Nasher Sculpture Center, AT&T Performing Arts Center), professional sports, and a fashion-forward social scene.
Houston is the most diverse city in Texas and one of the most diverse in the United States, with over 145 languages spoken and cuisine representing virtually every global tradition. The city's Museum District, theater scene, and culinary landscape rival those of any American city. San Antonio's culture is deeply rooted in its Spanish Colonial and Mexican heritage, celebrated through its historic missions (including the Alamo, a UNESCO World Heritage site), the iconic River Walk, vibrant festivals (Fiesta San Antonio), and a food scene centered on Tex-Mex, barbecue, and innovative contemporary cuisine.
Across all Texas cities, you will find a warm, welcoming social culture where friendliness is the default and community involvement is valued. Texans are genuinely proud of their state and eager to help newcomers feel at home. Religious institutions, community organizations, sports leagues, and neighborhood associations provide natural avenues for building social connections. The state's low cost of living allows for a higher quality of life, with more disposable income for dining, travel, entertainment, and hobbies than comparable earnings would provide in coastal cities. Texas's "work hard, play hard" ethos creates a balanced lifestyle that newcomers consistently cite as one of their favorite aspects of their new home.
Driver's License and Vehicle Registration
New Texas residents must obtain a Texas driver's license within 90 days of establishing residency (though the practical standard is 30 days for most purposes, including insurance and voting registration). The process involves visiting a Texas Department of Public Safety (DPS) office with your out-of-state license, proof of identity (passport or birth certificate), proof of Social Security number, two documents proving Texas residency (utility bill, lease, bank statement), and proof of vehicle insurance. The fee is $33 for a standard license valid for 6-8 years. Most applicants transferring from another state are not required to take the written or driving tests, but DPS reserves the right to require testing.
Vehicle registration must also be completed within 30 days of establishing Texas residency. You will need the out-of-state title, a Texas vehicle inspection (approximately $25.50 at any licensed inspection station), proof of Texas insurance, and the completed Application for Texas Title (Form 130-U). The registration fee varies by vehicle type and county but typically runs $50-$75 annually plus any applicable county fees. New-to-Texas vehicles are subject to a one-time new resident tax of $90 in lieu of sales tax if you owned the vehicle prior to moving. If you purchase a vehicle after moving to Texas, you will pay the standard 6.25% motor vehicle sales tax.
Texas requires all vehicles to carry minimum liability insurance of 30/60/25 ($30,000 per person, $60,000 per accident bodily injury, $25,000 property damage). However, minimum coverage is woefully inadequate given Texas's high rate of serious accidents and the prevalence of uninsured motorists (estimated at 14% statewide). Financial advisors recommend carrying at least 100/300/100 coverage with uninsured/underinsured motorist protection. Auto insurance rates in Texas average $1,800-$2,400 per year for full coverage, higher than the national average due to severe weather, high traffic volumes, and distracted driving prevalence. Shop multiple carriers for the best rates, as premiums vary significantly by company.
Healthcare in Texas
Texas has a complex healthcare landscape. On the positive side, the state is home to some of the nation's finest medical institutions. The Texas Medical Center in Houston is the largest medical complex in the world, encompassing 60+ institutions including MD Anderson Cancer Center (consistently ranked #1 for cancer care), Houston Methodist, Memorial Hermann, and Texas Children's Hospital (the nation's largest children's hospital). Dallas is home to UT Southwestern Medical Center (a leading research and teaching hospital) and Baylor University Medical Center. San Antonio's South Texas Medical Center and Austin's expanding hospital network provide additional high-quality options.
However, Texas has the highest rate of uninsured residents in the nation (approximately 18%), has not expanded Medicaid under the Affordable Care Act, and faces a physician shortage in rural areas. For newcomers with employer-sponsored insurance or the means to purchase marketplace coverage, access to excellent healthcare is not a concern in the major metros. If you are self-employed or between jobs, research marketplace options carefully before moving, as premiums and provider networks vary significantly by county and metro area.
Specialty healthcare is another Texas strength. In addition to the world-class institutions mentioned above, the state has leading facilities for orthopedics (Texas Orthopedics in Austin), cardiology (Texas Heart Institute in Houston), and pediatric care (Dell Children's in Austin, Cook Children's in Fort Worth). Mental health resources have expanded significantly in recent years, though demand still outpaces supply in many areas. If you have ongoing healthcare needs, verify that your specialists and preferred facilities are in-network with your insurance plan before finalizing your move. Proximity to preferred healthcare providers is a valid and important factor in choosing which Texas city and neighborhood to call home.
Making the Move: Your Relocation Checklist
A successful move to Texas requires organized planning across multiple categories. Start 60-90 days before your move date with the following priorities: research and select your target city and neighborhoods (use our city guides for Austin, Dallas, Houston, and San Antonio), connect with a local real estate agent who specializes in relocations, begin your home search or apartment search, and notify your current employer or line up your new position. If you have school-age children, research school districts and begin the enrollment process, as popular campuses and districts may have transfer deadlines and waitlists.
Thirty to sixty days before your move, finalize your housing arrangements (close on a home or sign a lease), obtain Texas auto insurance quotes and select a provider, arrange for moving services (book movers at least 4-6 weeks in advance for interstate moves), set up utility accounts (electricity requires choosing a provider in deregulated areas), and update your address with banks, credit cards, subscriptions, and the USPS mail forwarding service. If you are selling a home in your current state, coordinate the timing of your sale and purchase to minimize temporary housing needs.
Within the first 30 days after arriving in Texas, visit the DPS office to obtain your Texas driver's license, register your vehicle and complete the Texas inspection, register to vote (Texas voter registration must be submitted 30 days before an election), establish a relationship with a local bank or credit union if needed, find local healthcare providers (primary care physician, dentist, pediatrician), and explore your new community. Texas cities have robust newcomer groups, neighborhood associations, and community organizations that make it easy to build your social network. Schedule a free consultation with Dwellverse to connect with a relocation specialist who can guide you through every step of your Texas move and help you find the perfect home in your ideal neighborhood.
Sheila Smith Oliver is the founder and principal broker of Dwellverse, with over two decades of experience in Texas residential real estate. She has personally facilitated 500+ successful transactions across Austin, Dallas, Houston, and San Antonio, totaling over $250 million in sales volume. Sheila specializes in luxury properties, relocation services, and investment strategy.
Frequently Asked Questions
Dallas-Fort Worth is the best overall choice for families due to its high concentration of top-rated school districts (Highland Park, Carroll, Frisco, Prosper, Allen, Coppell) at diverse price points, extensive family amenities, strong job market across multiple industries, and central location with excellent air connectivity through DFW International Airport. Austin is ideal for outdoor-oriented families, San Antonio for budget-conscious families, and Houston for families valuing diversity and world-class healthcare access.
Texas is dramatically cheaper than both California and New York. A family earning $200,000 saves approximately $13,000 in state income tax vs California and $12,000 vs New York. Housing savings are even larger: the median home in Texas ($380,000) is less than half the California median ($800,000) and well below the New York metro median ($600,000). Overall, families moving from California or New York to Texas typically reduce their total cost of living by 25-40%, with the savings concentrated in housing, taxes, and childcare.
Texas summers are genuinely hot (100°F+ is normal from June-September), but air conditioning makes it manageable. Winters are mild (40s-60s°F) with rare freezes and almost no snow in the major cities. Severe weather risks include tornadoes (mainly spring in North/Central Texas), hail (especially DFW), hurricanes (Houston/Gulf Coast), and flash flooding (statewide). These risks are real but manageable with insurance and awareness. Texas averages 300+ days of sunshine per year, and most residents consider the mild winters a fair trade for the hot summers.
The Texas job market is one of the strongest in the nation, with unemployment at approximately 3.8% and over 350,000 new jobs created annually. Key industries by city: Austin (technology, semiconductor manufacturing, clean energy), Dallas-Fort Worth (finance, corporate headquarters, defense, telecommunications), Houston (energy, healthcare, aerospace, shipping/logistics), San Antonio (military, cybersecurity, healthcare, tourism). Average professional salaries range from $75,000-$140,000 depending on industry, role, and experience level.
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Last updated: 2026-01-27