Gavin Newsom Announces New Podcast As People Flee To Texas
While Gavin Newson faces another recall by California voters, executives at U-Haul love him.
I recently came across news that California Governor Gavin Newsom has launched a new podcast. This announcement comes right on the heels of yet another recall effort against him, highlighting the ongoing dissatisfaction many Californians feel about his leadership. The irony wasn’t lost on me—while Newsom embarks on a media venture, everyday Californians continue to grapple with sky-high living costs, crushing taxes, and a housing market that is increasingly out of reach.
At about the same time, I stumbled across an article in the Mercury News that left me shaking my head. It featured a tiny home in Los Gatos, California, the very town I left behind four years ago, that had just sold for a staggering price. Having relocated to the Hill Country just north of San Antonio, Texas, I couldn’t help but compare the absurdity of California’s housing market to the affordability and quality of life that Texas offers. The numbers tell the story best, so let’s break them down.
The Cost of Homeownership: California vs. Texas
For those considering homeownership, the disparity between California and Texas is staggering. Consider these two properties:
Los Gatos, CA: A Two-Million-Dollar Shoebox
19 Mariposa Ave, Los Gatos, CA 95030: 2 bedrooms | 1 bathroom | 852 square feet | $2,100,000
In Los Gatos,a bedroom community of San Jose, CA, the Bay Area’s largest city, recently earned a concerning distinction: It has the lowest percentage of people under 30 with a mortgage nationwide, a modest 852-square-foot, two-bedroom, one-bathroom home on a small 5,400-square-foot lot sold for a staggering $2.1 million. To buy this home, the buyer made a down payment of over $428,000 to avoid mortgage insurance and took on a loan of nearly $1.67 million at an interest rate of 5.91%. The annual property tax on this home is approximately $26,000, and the insurance premium is around $4,000. That results in a monthly mortgage payment of $12,426 when factoring in principal, interest, taxes, and insurance. With the median household income in Los Gatos at roughly $207,891, purchasing a home at this price is far beyond what the average family can afford, requiring more than double the median income just to qualify. Most people in Los Gatos cannot afford to buy an 852 square foot house…
San Antonio, TX: A Spacious Alternative
21252 Millstream Bend, San Antonio, TX 78266: 4 bedrooms | 3 bathrooms | 2,257 square feet | $428,000
In stark contrast, a newly built home in San Antonio offers significantly more space and value at a fraction of the price. This 2,257-square-foot, four-bedroom, three-bathroom house sits on a slightly larger 6,098-square-foot lot and is listed for just $428,500, essentially the same amount as the 20% down payment on the Los Gatos house. The required down payment to avoid mortgage insurance is $85,700, with a loan amount of $342,800. Assuming the same 5.91% interest rate for this house, the total monthly mortgage payment, including property tax, insurance, and an $80 homeowner association fee, is a mere $3,014—less than a quarter of the cost of the Los Gatos home. The annual property tax of approximately $8,784 and insurance around $2,000, make the financial burden dramatically lower. Even more appealing, the minimum household income required to afford this Texas home is just $129,200—well within reach for a much larger percentage of households compared to the Los Gatos property.
California Tax Savings Cover Your Texas Mortgage
It’s not just housing costs that make California unaffordable; it’s also the crushing tax burden.
A household making $532,500 in taxable income in California would owe approximately $49,144 in state income taxes per year—over $4,095 per month. That’s more than the mortgage payment in Texas!
In contrast, Texas has no state income tax. That means a household earning the same income would pay $0 in state income tax. The money saved from avoiding California’s tax burden alone would more than cover the cost of a mortgage on the San Antonio home—with an extra $12,000 left over each year.
The Middle-Class Squeeze
The reality is that many middle-class families in California are barely hanging on. Consider this: only about 25% of Los Gatos households make between $129,200 and $207,891, which is the income range needed to afford the San Antonio home but still far below what’s required for the Los Gatos house.
For many, the choice becomes clear: stay in California and struggle under sky-high housing costs and taxes, or move to Texas and afford a larger home, pay no state income tax, and enjoy a significantly lower cost of living.
The Texas Advantage
Beyond just affordability, Texas offers other advantages that make it an appealing alternative:
Business-Friendly Environment: Texas attracts companies with its lower taxes and fewer regulations, creating more job opportunities.
Lower Cost of Living: Everyday expenses like groceries, gas, and utilities are more affordable in Texas than in California.
More Space & Better Infrastructure: Texas cities are designed for growth, with wider roads, newer infrastructure, and more spacious housing developments.
Additional Perspective: Why San Antonio?
San Antonio isn’t just an affordable place to live—it’s also a thriving hub for professionals, especially those in the technology sector. Among the largest metro areas in Texas, San Antonio consistently ranks as one of the most budget-friendly places to buy a home, making it an excellent choice for families looking to escape the financial pressures of California.
But affordability isn’t the only draw. San Antonio is home to a rapidly growing high-tech community, with industries ranging from cloud computing to artificial intelligence. More importantly, outside of Washington, D.C., no other city in the country has a larger concentration of cybersecurity professionals and job opportunities than San Antonio. With strong connections to military installations, private-sector innovation, and top-tier educational institutions, the city has become a powerhouse for those in tech and cybersecurity.
For professionals in the technology sector who want to raise their families in a city that offers both career growth and an unmatched cost of living, San Antonio stands out as an unbeatable choice. It’s not just about escaping high taxes and absurd housing prices—it’s about finding a place where both your career and family can truly thrive.
