- In 2023, Texas welcomed 473,000 new residents, the most of all 50 states.
- The state's recent growth can be largely attributed to communities of color.
When Jasmine Cambridge moved from Atlanta to Austin, she was thrilled to meet more people like herself.
Cambridge said most Black people she's met since her 2023 move to Texas are, like her, originally from somewhere else.
"Austin is up-and-coming, fertile soil," said Cambridge, a 25-year-old server at a steakhouse who wants to work in marketing. "I've talked to a lot of people who have moved to Austin — especially people of color — about how there's so much financial opportunity here."
Cambridge said she believes she and other Black people are moving to Texas for better job prospects, especially in tech, and increased social mobility.
She may be onto something: Texas is booming — and both its population and economic growth are largely being driven by young people of color, according to census data and people who have moved into the state.
Many people moving to Texas have told BI they're motivated by the prospect of a cheaper cost of living, particularly compared with states such as California and New York. They've also said they're drawn by employment opportunities, housing availability, and family-friendly environments.
Young people and people of color are flocking to Texas
Let's dive into the numbers.
Census data indicates that in 2023, Texas led the nation in population growth, welcoming 473,000 people, the most new residents of any state. Between July 2022 and July 2023, the state recorded a 1.6% increase in population, the third highest among the states and well above the national growth rate of 0.5%.
A Business Insider analysis of census data found that while Texas' growth in 2010 was mostly attributable to residents having children, by 2023, more of the growth resulted from people moving in.
The population growth has largely been driven by young people and people of color. Millennials comprised 40.5% of people moving to Texas from 2021 to 2022, and Gen Zers made up about 30%. The Texas Demographic Center's analysis of the 2020 census found that 95% of the state's population growth was associated with a rise in people of color.
Most people who moved to Texas between 2021 and 2022 didn't identify as white, according to a Business Insider analysis of individual-level 2022 American Community Survey data compiled by the Minnesota Population Center's IPUMS project. Nearly 23% of movers identified as Hispanic, while 14.4% identified as Black, about 10% identified as Asian, 4.2% said they were of two races, and 1.1% selected other. About 48% identified as white.
Lauren Leining, a data analyst at the nonpartisan think tank Texas 2036, said Texas was attracting people with its "economic opportunity and diverse communities," adding, "it seems these tight-knit communities attract relatives and friends to move there to be closer to them."
The newcomers are also fueling Texas' economic expansion. Wells Fargo economists said late last year that Texas was outpacing most other states in growth of both gross domestic product, which represents the monetary value of finished goods and services, and employment.
A December report from Bank of America found that Texas' economic and employment growth was beating the US national average. It also forecast that Texas cities, including Dallas and Houston, would play a bigger role in the country's economic future.
Black Americans are moving to Texas for new opportunities
Researchers at the Brookings Institution found in 2022 that in the 50 years since the Great Migration, when about 6 million Black Americans left the South for other parts of the US, there had been a reversal. Many Black Americans were returning to the South, and particularly to Texas, in what's been called the New Great Migration.
Census data indicates Texas is home to the largest Black population in the US, with over 4 million people, or about 13.4% of the state's total population.
Cambridge, the server who moved from Atlanta to Austin, said the Texas capital has a "strong Black presence."
"It's one of those places where there's room for people — not just physically, but socially and on a socioeconomic level," she said.
Cambridge added that she's been delighted by Austin's wide range of residents.
"People are used to people of color, especially being so close to the Mexico border," Cambridge said. "There's a strong Indian-American population where I live, too. Austin is surprisingly diverse."
The state's housing boom is helping boost racial diversity
An abundance of available and relatively affordable homes has also attracted many people of color to Texas.
An analysis of census data by the luxury real-estate brokerage RubyHome found that between 2010 and 2022, Texas led the nation in the rate of new home construction: During that period, about 2.5 million homes were built, amounting to 22.5% of the state's total.
"Where housing growth is happening is where the populations are ending up," said Holly Heard, the vice president of data and analytics at Texas 2036. "Growth into the suburbs then means that they become more racially and ethnically diverse."
Anna Lagos, a 38-year-old real-estate agent, was seeking a cheaper place to buy a house when she, her Mexican American husband, and their two children moved to Texas from California in 2014.
In 2021, after living in San Antonio and Austin for a few years, the couple moved to New Braunfels — a small city about 30 miles northeast of San Antonio — where they bought a 2,700-square-foot home for $325,000.
Lagos told BI she believed the state gave her and her husband a greater shot at becoming homeowners.
"We always wanted to own a home. It was pretty evident that we'd have to work for many years before we'd be able to purchase one in California," Lagos told BI in December. "The opportunities were much greater for us in Texas than they were in California."
Are you a person of color who recently moved to — or moved out of — Texas, and wants to share your story? Email reporter Alcynna Lloyd at alloyd@businessinsider.com.