Florida or Texas, Where to Live Next?

Without doubt, Florida has often been the default option for retirees or anyone looking to relocate and spend their golden years with a bit of sun on their back, or just enjoy a better climate.

However, it seems that the Sunshine State has got itself a serious rival these days. The Lone Star state is gaining some serious traction as a place to be. In fact, there’s a noticeable trend in people moving from Florida to Texas, as well as plenty of others around the country who are choosing Texas over Florida.

What’s going on, and what is it that makes Texas so deserving of your attention as the next destination for your life journey? When you pick up the car rental from Houston airport and start to explore this huge and impressive state, you quickly see with your own eyes why Texas is winning so many hearts and minds.

The most obvious reason why Texas is winning over would-be Floridians is that the cost of living in the Lone Star state is usually significantly lower. That is obviously a clear selling point, but the overall answer is more nuanced than that.

Here’s a look at some key selling points when considering whether to choose Texas over Florida.

 Living costs are a good starting point

For many of us, one of the biggest factors when weighing up the pros and cons of a move is how living costs compare. If you can move to somewhere that is just as attractive, albeit in different ways, but where the living costs are noticeably lower, that’s a real no-brainer.

In general terms, the average living cost for someone living in Florida is estimated to be just over $2,000 per month. A typical family of four in Florida will have costs in the region of $4,600, and the average home value is about $378,000.

In comparison, it is estimated that the typical monthly living cost for Texas is lower. What this means is that you tend to get more bang for your buck. For every $1,000 you spend in Florida, it will cost you just over $900 to achieve the same standard of living if you are in Texas. A typical family of four can expect to spend in the region of $300 per month less to maintain the same standard of living in Texas as they would in Florida.

That is the sort of monthly saving that can make a big difference to your standard of living. It is a convincing reason why Texas is being considered as a viable alternative to Florida.

You’ll find a place that suits your needs in Texas

Although living costs are clearly a big part of the argument, it also matters greatly that you can find an area and a place that suits your particular needs.

The good news is that Texas offers a lot of great options. For instance, Dallas is widely considered to be one of the best places to live in the state, especially if you are a young professional making your way in life.

If the big city vibe is not what you are looking for, places like Plano, South Padre Island,  and El Paso offer a suitable alternative. Plano is often judged to be one of the best places to move to, especially if you are coming from Florida. In a nutshell, it delivers a great suburban feel, with lots of leisure and educational opportunities on your doorstep, and the house prices are still very attractive.

El Paso also scores heavily if you want to enjoy a suburban experience with a good level of affordability. In fact, El Paso is deemed to be one of the most affordable spots in Texas, with an average living cost that is almost $600 less than the state average. That means El Paso is a bit of a win-win, with affordable housing and lower living costs, but a good level of amenities close by.

Is it more affordable to buy a property in Texas?

The short answer to that question is yes, most of the time. If you do a direct comparison of home price-to-income ratios you will see that Texas comes out cheaper than Florida.

The average price-to-income ratio for Texas is 2.79, compared to 3.48 for Florida. What this means in layman’s terms is that you will need to allocate about 23% of your earnings for buying a typical property in Texas. In contrast, you can expect to need 30% of your earnings for mortgage payments, which is a percentage that actually exceeds recommended financial guidelines.

The amount of down payment required to buy a home is also lower in Texas. A Typical down payment in Texas is just over $48,000. This rises to over $57,000 when buying a comparable property in Florida.

Economic strength is similar when comparing Florida and Texas

It matters greatly that the place you like to call home has a good level of economic stability and strength. Having a strong economy means that growth prospects in terms of jobs and wages are likely to be good.

time to get up and go for a beach life (Florida)

On that score, both Florida and Texas score well. Texas enjoys a $1.88 trillion GDP, compared to Florida that comes in at $1.5 trillion. They both project expected annual growth of about 3% on that number, so both states are in relatively good shape.

Naturally enough, these two states are very different in many ways. Florida derives a big chunk of its income from hospitality and tourism, whereas Texas relies heavily on the energy sector for the main percentage of its GDP.

It is relevant to pick a location that aligns with your job skills, but in fairness, both Florida and Texas have enough about them to offer great employment opportunities, whatever your current skillset happens to be.

When you weigh up all the key criteria such as cost of living and housing costs, you can see why Texas is winning the argument when compared against Florida as a place to enjoy a good lifestyle.