Top 10 Fastest Growing Cities in Texas

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In this article, we list and discuss the Top 10 Fastest Growing Cities in Texas. If you would like to skip our detailed discussion of the topic, you can go directly to the Top 4 Fastest Growing Cities in Texas.

Texas is one of the fastest-growing states in the United States, with a population growth of 4.7%. For perspective, out of the five fastest-growing cities in the US, four cities are from the state of Texas. Much of that growth comes from people migrating from the other states. One of the primary reasons why people are moving to Texas in such large numbers is that Texas has a good job market, friendly business environment and a favorable tax system.

According to the Texas Workforce Commission (TWC), the Texas labor market is experiencing a record-breaking growth. From January 2023 to January 2024, Texas’ total nonfarm employment grew by 263,900 jobs, showing an annual growth rate of 1.9%. Moreover, the seasonally adjusted civilian labor force in Texas grew by 12,800 people in a month to reach 15,143,400 in January. 

On the other hand, the state of California is going through a rough patch with its job market. According to the US Bureau of Labor Statistics, from January to February, 13,100 more Californians lost their employment and the total number rose to 1,027,000. When one state has a prosperous economy while the other states struggle, people tend to migrate to where the grass looks greener, and this is exactly what happened between California and Texas. A report from the US Census Bureau found that 107,546 people migrated from California to Texas in 2021. 

While employment is one reason for the rapid population growth in Texas cities, its tax system is another significant driver of the state’s growth. Texas is one of the very few states with no income and corporate tax. Furthermore, it has a sales tax rate of 6.25%, which is fairly reasonable compared to other states. However, its property tax rate of 1.68% is what concerns many property owners in Texas. Regardless, Texas is a distinguished destination for those who prefer low taxes and a good job market. 

Moreover, many Fortune 500 companies like McKesson Corp (NYSE:MCK), Exxon Mobil Corp (NYSE: XOM), and AT&T Inc (NYSE:T) are headquartered in Texas, perhaps to benefit from the zero corporate tax and contribute to the job market. 

McKesson Corp (NYSE:MCK), the largest pharmaceutical distributor in the US, moved to Irving, Texas, from San Francisco, California, in 2019. McKesson Corp (NYSE:MCK) brought nearly 1,000 jobs to Irving and generated approximately $300 million to $400 million in annual pre-tax gross savings that were realized by the end of fiscal year 2021.