The California-to-Texas migration is not slowing down. California has been the top move-out state in the country for five consecutive years, and Dallas-Fort Worth continues to be the primary destination for many of those movers, particularly families and professionals relocating for employment. DFW added 178,000 new residents between 2023 and 2024 alone, and the corporate relocation pipeline feeding that growth remains active in 2026.
If you are relocating from California to the DFW area and are beginning to think about buying a home, this post covers what the real estate process actually looks like when you are purchasing from out of state, what is different about the Texas market compared to what you may be used to, and where buyers in your situation tend to land in North Texas.
Why DFW keeps attracting California buyers
The financial math is compelling and straightforward. California imposes a state income tax up to 13.3 percent. Texas has no state income tax. For a household earning $200,000 per year, that difference alone represents a meaningful increase in take-home pay before accounting for any other cost differences.
Housing is the other major factor. The median home price in the DFW metro sits around $400,000. In the San Francisco Bay Area, Los Angeles, or San Diego, that budget does not buy a comparable property. In North Texas, $400,000 to $600,000 buys a well-built home in a strong school district with a yard, a garage, and room for a family to spread out comfortably. That contrast is the primary driver behind the volume of California buyers entering this market.
The employment picture adds a third layer. DFW has led the country in corporate headquarters relocations for seven consecutive years according to CBRE. Companies including Toyota, JPMorgan Chase, Goldman Sachs, Samsung, and dozens of others have established or are expanding major operations in North Texas. That creates both the direct employment that brings people here and the broader economic stability that supports the housing market long-term.
What is different about buying real estate in Texas
If you have bought property in California, the Texas purchase process has some meaningful differences worth understanding before you start making offers.
The Texas residential purchase contract includes an option period, which is a feature specific to Texas real estate. For a negotiated fee, typically $100 to $500, the buyer purchases an unrestricted right to terminate the contract within a set number of days, usually five to ten. During this window you conduct your inspections and due diligence. If anything significant comes up or you simply change your mind, you can walk away and recover your earnest money. The option period functions as your safety valve and it is a standard part of virtually every Texas residential transaction.
Property taxes in Texas are meaningfully higher than in California on a rate basis. While California's Proposition 13 caps assessed value increases, Texas reassesses property annually at market value. Effective tax rates in Collin County, which covers Plano, McKinney, and Frisco, run roughly 1.8 to 2.5 percent of assessed value depending on the municipality and school district. On a $500,000 home that is $9,000 to $12,500 per year in property taxes. Make sure your lender is using accurate local tax estimates when calculating your monthly payment, as this is frequently underestimated by lenders unfamiliar with the Texas market.
The closing process in Texas moves on a different timeline than California. Texas closings typically take 30 to 45 days from executed contract, which is generally faster than what many California buyers are accustomed to. Title companies handle closings in Texas, not attorneys, and the process is more streamlined in most cases.
Where California buyers tend to land in North Texas
The North DFW suburbs, specifically Plano, Frisco, McKinney, Allen, and Prosper, attract the largest concentration of California relocatees because they offer the combination of newer housing, strong school districts, and proximity to the major corporate employment corridors that defines what most relocating families are looking for.
Plano and Frisco are the most established choices, with deep infrastructure, well-rated school districts, and direct access to the Legacy corridor employment base. McKinney offers a slightly lower median price point with a similar profile and is growing rapidly. Allen and Prosper sit further north and appeal to buyers who want newer construction and larger lots at a somewhat lower price point relative to Frisco.
For buyers with a tighter budget or those prioritizing investment potential alongside primary residence, inner DFW suburbs like Garland, Richardson, and Grand Prairie offer meaningfully lower entry prices with the same proximity to employment and strong rental demand if the property is eventually converted to a rental.
How to buy from out of state in the DFW market
Buying a home in DFW without being physically present is entirely manageable with the right agent and the right process. The key is working with an agent who is genuinely active in the specific submarkets you are targeting and who can give you accurate, current information rather than general market talking points.
Video walkthroughs, virtual showings, and remote offer submission are standard practice in this market for out-of-state buyers. Many California buyers make offers sight-unseen on properties that have been thoroughly vetted by their agent, using the option period to conduct an in-person visit and inspection before committing fully.
Pre-approval from a lender who is licensed in Texas is essential before you start seriously shopping. Texas has its own lending regulations and some California lenders are not set up to close Texas transactions. Getting pre-approved with a Texas-active lender eliminates a potential source of delay at a critical point in the process.
I work with relocating buyers regularly, both those who visit DFW before making a decision and those who are purchasing remotely on an employment timeline. If you are relocating from California and are beginning to evaluate the North Texas market, reach out directly. I can walk you through the current inventory in your target submarket, the realistic purchase process from out of state, and what to expect from the Texas transaction itself.