U.S. Census Bureau: Californians still flock to TexasU.S. Census Bureau: Californians still flock to Texashttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=234132019-11-07T06:00:00Z2019-11-08T14:00:00Z

​​​​​​COLLEGE STATION – According to 2018 U.S. Census Bureau data, top migration inflows into Texas came from either highly populated coastal states such as New York, Florida, and California or adjacent states like Oklahoma and Louisiana.

Last year, just over 86,160 moved to Texas from the Golden State. After accounting for migration outflows from Texas to California, the net migration between the two states still favors Texas by almost 50,000. Migration from Florida was a distant second with about 37,270 making the move to Texas (net migration was less than 15,000).

The sudden uptick of California migrants follows the passing of the Tax Cuts and Jobs Act of 2017 (TCJA), which holds many implications for residents living in high-tax states. Part of that legislation caps the deduction limits of state and local income taxes at $10,000 where formerly there was no limit.

The TCJA also reduced the mortgage interest deduction limit on new home purchases, which many real estate professionals initially believed would have a negative impact on housing activity, particularly for high-end homes. 

According to Real Estate Center Senior Data Analyst Joshua Roberson, that does not appear to be the case in Texas. Sales for luxury homes (priced at or above $1 million) expanded greatly in 2017, 2018, and so far into 2019. 

While high-income homebuyers may miss out some on the mortgage interest deduction, the net effect from other aspects of the bill may have been enough to provide a net positive impact for the luxury housing market. 

For the full article, read Josh's Mixed-Use blog post, "Taxes, tariffs, and Texas migration."

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