Routing # 256078446
MORTGAGE KNOWLEDGE CENTER
PenFed Mortgage with Confidence
January 21, 2022
If you are considering moving to Texas, there are ten things you should know first. From cost of living to customs and manners, weather, and hazards, along with some not-so-well-known tips that will help you acclimate to your new environment. Read on to discover facts and tidbits about life in Texas and whether it is a good fit for your new home.
1. Why move to Texas? Low cost of living
High wages, affordable real estate, and a lower cost of living than many other states make Texas the perfect destination for those wanting their income to go the farthest.
Many people from California are moving to Texas. In 2018 and 2019, there were about 80,000 relocations, and this amount is increasing. But the good thing about Texas is that there are plenty of land and jobs.
Of course, it depends what county you are moving from in California to exactly where you are moving to in Texas. But generally, you will notice savings, especially when it comes to real estate. And that is especially true if you are moving from Silicon Valley.
Besides California, other top states where residents are leaving for Texas are Arizona, Georgia, Louisiana, New Mexico, Oklahoma, and Illinois. Keep in mind, if you are relocating to the Lone Star State and you are wondering, “What is Texas like?” It is Texas, and that is the way the state wants to keep it. Texans are proud of their state, customs, and heritage.
2. Why are companies moving to Texas? No state income tax
If you are also asking: “Why are people moving to Texas?” One major reason businesses and individuals alike relocate to Texas is because there is no state income tax. If you are coming from highly taxed states like California or New York, that can mean thousands of extra dollars in your pocket per year.
And for companies both small and large, it is a huge advantage. Business-friendly Texas can help an organization that has been over-taxed and struggling turn a profit. And besides state tax savings, there are business incentives and financing for companies choosing to relocate. Texas is big on small business, and the Texas Economic Development offers services and resources for regulatory compliance, permitting, and licensing.
3. Budget for higher property taxes
Keep in mind, if you are relocating to Texas and buying a home, the property taxes are higher. According to smartasset.com, homeowners in the Lone Star State pay some of the highest taxes in the country. The national average is 1.07%, with Texas property taxes at 1.69%.
Keep those higher taxes in mind when you are applying for a mortgage and figuring out how much home you can afford.
4. Advice for anyone moving to Texas—check out the schools
For families with school-aged children, the quality of schools is paramount when buying a home. Unfortunately, Texas does not rank very high when it comes to public schools. According to USNews.com, in 2019, the state ranked #31 out of 50 states. So, you may need to add private schooling to your budget.
GreatSchools.org is an excellent resource to see what’s available. In Texas alone, there are 20,564 public and private schools covering pre-kindergarten through high school. Another option is to consider living in a gated community. Often, they have new schools nearby that might fit your needs. Homeschooling is also popular in Texas.
5. Texas weather and climate
USClimateData.com climate information for specific cities. Summer temperatures can exceed 100°F, and the winters can be frigid.
Flash-flooding is also an issue. The Texas Department of Transportation cautions drivers to "Turn Around, Don’t Drown!" And the other bit of extreme weather you might not be aware of is lightning. Texas tops the US in lightning strikes.
Allergies are high in Texas, especially for mold and cedar. Unlike other locations with allergy season, mainly in spring, allergies can affect sufferers all year. Different trees bloom throughout the year. So, if you are prone to allergies, you might want to visit first before you relocate to see if it is an issue for you.
6. Why move to Texas? Texans are friendly
If you are a woman, expect men to tip their hat or touch the brim when passing on the street.
You will hear a lot of "yes, sir" and "yes, ma’am". That respect is taught at an early age. And it is important to show personal interest and get to know someone before jumping into a business conversation. Always ask about the family and enjoy some small talk.
Keeping that in mind, you always need to show respect. That includes not cutting someone off on the road or jumping in front of them in line. And, of course, be respectful of their spouses and children. Otherwise, you will see the other side of the friendly Texan.
7. Moving to Texas? Have great manners
Here are a few tips to make great impressions and new friends. Perfect your grip for a strong handshake. That will give a good long-lasting impression. Texans take pride in their hats even if they are bent and dirty—never make fun of someone’s hat.
For weddings, ask if it is formal or not. Some weddings are casual, so you do not want to stick out in formal attire. Do not be surprised by enthusiastic hugs and invites to dinner.
And do not complain about the weather—everyone knows it is hot. Remember, it is Texas!
8. Relocating to Texas lets you enjoy the outdoors
Do you love to fish? Then you will love Texas. Get ready to catch largemouth bass, catfish, Alabama bass, Crappie, and Walleye. The top-rated fishing lakes are Lake Conroe, Lake Fork, Lake Buchanan, O.H. Ivie Lake, Lake Palestine, Falcon International Reservoir, Lake Texoma, Alan Henry Reservoir, Granger Lake, and Meredith Reservoir.
Besides fishing, BuzzFeed has some great suggestions of places to visit and explore the great outdoors. Here is a great bucket list for once you move:
- Big Bend National Park for hiking
- Guadalupe and Comal River for floating
- Big Thicket National Preserve for a fauna walk
- Hamilton Pool for a day of swimming
- Hueco Tanks State Park for rock climbing
- South Padre Island for kiteboarding
- Enchanted Rock for spelunking (cave exploration)
- Santa Elena Canyon for rafting
- Palo Duro Canyon for horseback riding
- Bentsen-Rio Grande Valley State Park for birding
9. Strong job market and good wages
There is no shortage of opportunities for a good job and career opportunities. The main industries in Texas include:
- Aerospace
- Agriculture
- Education
- Engineering
- Entertainment
- Healthcare
- Oil and Petroleum
- Technology
In 2020, major companies relocated or expanded into Texas. Some of the tech companies included Tesla, Hewlett Packard, Oracle, CBRE, and Amazon. In January 2021, big tech giant Digital Realty Trust announced they would move its headquarters from San Francisco to Austin.
To put the Texas economy in perspective, The Business Xpansion Journal states that in 2021, the Texas GDP is the world’s ninth-largest. Here is how it measures up to the United States and other countries based on WorldPopulationReview.com.
1. US GDP: $21.4 trillion
2. China: $13.4 trillion
3. Japan: $4.97 trillion
4. Germany: $4 trillion
5. UK: $2.83 trillion
6. France: $2.78 trillion
7. India: $2.72 trillion
8. Italy: $2.07 trillion
9. Texas: $1.9 trillion
10. Why live in Texas? Affordable homes
Texas has long been known for having affordable housing. But over the last few years, prices have continued to climb. According to the Texas Quarterly Housing Report, for the second quarter in 2021, the median home price has climbed to $300,490. That is up 19.1 compared to 2020.
The thing to keep in mind, though, is that affordability is affected by supply and demand. For the second quarter in 2021, the active listings were down 42.2%.
Fewer homes on the market can drive prices up and create a seller’s market. In a seller’s market, prices go up. In a buyer’s market, prices are lower.
Compared to other states, Texas is still affordable. Plus, if you take a look at what you can get in Texas for $300,000 to what you can get in California, you will be amazed.
Is Texas a good state to live in?
Now that we have answered What is it like to live in Texas?, it should be easier for you to answer your question Should I move to Texas?. As you can see, there are many advantages to relocating, but also a few disadvantages to keep in mind. Best of luck in your final decision.
SIMILAR ARTICLES

Top 10 Smart Home Features Homeowners Love
Find out about the latest smart home features that can make your everyday life easier and more enjoyable. From climate control to security, discover the top ten.

Top 10 Mistakes to Avoid When Applying for a Mortgage
Applying for a mortgage can be tricky. There are pitfalls to avoid, so you don't get turned down. Find out what they are so you have a better chance of approval.

Top 10 Advantages of an FHA Loan
FHA loans have lots of amazing benefits. From easier credit, down payment, and gift fund rules to great interest. Read on to see the top 10.

10 Things to Do If You Plan to Buy a House in 6 Months
Learn how to buy a house in six months, what the different types of mortgages are, the cost of homeownership, and more.
Home Buying Steps
Mortgage Products
Disclosures
1Conventional Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.5 discount point, which equals 1.5 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
2FHA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.25 discount point, which equals 1.25 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 96.5%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
3VA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.375 discount point, which equals 1.375 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $450,000; loan-to-value ratio of 95%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of $995.
4Jumbo Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 0.75 discount point, which equals 0.75 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, non-conforming, fixed-rate loan. Loan amount of $1,009,000; loan-to-value ratio of 70%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Advance Period. During your Advance Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.
