California, NY taxes driving Texas real estate

Five of the six top cities for homebuyers are in the Lone Star State

Low tax rates and warm weather are attracting homebuyers to the Lone Star State.

Land Tejas Executive Vice President Uri Man said high taxes in states like California and New York are driving residents to Texas where affordability is key on "Mornings with Maria" Wednesday.

"If you're looking to buy a new home today, you want to be where there's an affordable home, there's lots of job growth, and you want to be in a place where there's warm weather," Man explained to FOX Business' Maria Bartiromo and he added that "Texas checks the box on all of those."

A new WalletHub report released Tuesday found that five Texas cities, including the state capital, Austin, ranked in the top six best places to buy a home in the U.S. in 2021.

Data was taken from 300 cities of varying size and 18 key factors were analyzed, from median home-price appreciation to job growth.

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Besides Texas having the second-highest growth rate in the country and entering the year as the world's ninth-largest economy, data shows the city of Austin saw the largest influx of tech worker migration this past year.

Texas also has no state income tax, unlike California and New York.

"Every day you turn on the television, you hear about a new company, Amazon, CBRE, Tesla, HP, all announcing they're either moving parts of their companies or opening new offices in Texas," Man pointed out.

Man said Texas’ affordability is also allowing younger generations to enter the real estate market, further adding to the state’s growth.

"Those people are aging into homeownership," Man said, "and they're buying homes and they want to be in markets that are affordable where there's great job growth."

Man also believes undersupply of inventory will allow for home prices to continue to appreciate. 

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