Texas Border Business
Since at least the Panic of 1819 more than two centuries ago, “Gone to Texas” has been linked with those coming to make a fresh start (at that point, Texas was a part of Mexico). Some things never change!
Another set of data confirms what has long been occurring – Texas continues to attract new residents at a solid pace. The U-Haul Growth Index measures one-way customer transactions, and provides a unique look at migration from state to state. Rankings reflect net gains (or losses) based on rentals of trucks/trailers in one state which were dropped off in another. More than 2.5 million such transactions occurred in 2025.
Texas ranked number one in the Index for the seventh time in the past 10 years, with arriving customers comprising 50.7% of one-way traffic in or out of the state. The numbers were up 3% over 2024.
Florida, North Carolina, South Carolina, and Tennessee round out the top five. These states have been atop the list for years now (though the order has varied), consistently experiencing in-migration. At the other end of the spectrum, the greatest out-migration was in California (for the sixth consecutive year), with Massachusetts, New York, New Jersey, and Illinois also ranking in the bottom five.
The top three growth metropolitan areas are also in Texas (Dallas, Houston, and Austin). Several others were in the top 25, including Brownsville-McAllen (10), San Antonio (21), and College Station (23). For specific cities, McKinney ranked number six, with Seguin, New Braunfels, and Conroe in the top 20.
One reason for this trend is job opportunities. Although growth has slowed recently, Texas has long been generating far more new positions than anywhere else, and the other top states have also seen notable gains.
A second factor is the cost of living. Texas and Florida are among the few states without a state income tax. Rankings of state tax burdens generally place Texas relatively well with regard to the overall tax structure (although there is always room for improvement), whereas the worst three are typically California, New Jersey, and New York. High taxes affect people across the income spectrum; in fact, recent headlines have described billionaires leaving California in advance of new levies.
Business-friendly environments and lower costs in terms of operating expenses are proving to be attractive. The data also reveals an ongoing shift toward southern states, with eight of the top ten locations.
Many factors go into any moving decision, and Texas is well-positioned for continued in-migration. That’s great news for the potential of the economy in light of national workforce shortages, as long as the requisite infrastructure investments of all types (including education) occur in a timely manner. Stay safe!
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Dr. M. Ray Perryman is President and Chief Executive Officer of The Perryman Group (www.perrymangroup.com), which has served the needs of over 3,000 clients over the past four decades.
