Here and There‑‑(Mostly Here)!
By: Dr. M. Ray Perryman
Published in syndication September 25, 2024
More than 668,300 people moved to Texas according to the latest (July 2021 to July 2022) Census state-to-state migration data. That's more than 1,830 per day. About two-thirds came from other states, with the remainder from abroad. A year prior, in-migration was modestly higher at over 762,000 people, which was due in part to the effects of the pandemic.
Texans also moved elsewhere, with almost 494,100 leaving for other US states. On a net basis, the increase was about 174,200. A number of studies indicate that many of the folks coming to Texas are in prime working age ranges, with a substantial number of them possessing in-demand skills and training. These new residents are facilitating economic growth and generating opportunities which, in turn, contribute to additional population inflows.
The state with the largest numbers leaving to move to Texas was California, with over 102,400, only slightly lower than the year before (107,500). Other top states include Florida (41,700), New York (30,900), Illinois (25,300), and Louisiana (25,200). Several other states saw more than 20,000 residents move to the Lone Star State. The top destinations for those leaving Texas include California, Florida, and Oklahoma.
The Internal Revenue Service also tracks state-to-state migration based on individual tax returns. Almost 624,600 individuals with adjusted gross income (AGI) of more than $31.9 billion moved into Texas from other states and countries. The vast majority ($31.6 billion) was from other states. The AGI inflow from California was an astonishing $7.9 billion, with $1.8 billion from Florida. More than $1.6 billion in AGI was the result of people moving from Illinois, with $1.5 billion from New York, $1.4 billion from Washington, and more than a billion each from Colorado and Arizona.
The average AGI of those moving in from other parts of the United States was about $51,500 per person. Since AGI is gross income less several significant types of expenses, the total incomes of those moving to Texas are even higher. Several states are the source of particularly high-income individuals, such as the District of Columbia ($102,300 in AGI) and California ($73,900).
Differentials in tax rates and living expenses are a primary factor in many moving decisions. According to the Tax Foundation, people in New York, California, and Illinois face among the highest state and local tax burdens. Texas, on the other hand, is among the lowest. Clearly, it is crucial to generate sufficient tax receipts to meet critical public needs, including education and infrastructure (which also encourage migration), but favorable cost factors are part of the Texas magnet. As a chronic national labor shortage persists and intensifies over time, the allure of Texas to skilled workers provides a notable competitive advantage. Stay safe!
- Tags: migration, population change, Texas