There’s a lot to digest in this comparison of migration in California urban areas vs. migration in Texas urban areas. Quick take: Despite anti-sprawl laws, the cores of California cities would be emptying due to migration to the suburbs, were it not for net immigration from abroad. Texas cities, by contrast, are see growth in both the core and suburbs.
California’s political economy is based on high tax rates; rent control and growth controls; inflated housing values, but relatively low property tax rates because of Proposition 13; mandatory inclusionary housing and more jobs for teachers, tax assessors, subsidized solar power technicians, urban planners and environmentalists. Its immigration policies are mostly the symbolic “Dream Act,” anti-deportation laws and “sanctuary cities.”
Texas’ economy is based on low or no business and income taxes, no rent control, few growth controls, higher property tax rates based on lower housing values, inclusionary old inner cities by markets, and tax incentives for private sector jobs. Only El Paso and Houston have sanctuary city policies. An anti-sanctuary city bill died in the Texas legislature in 2011.
California has passed anti-sprawl legislation to try to halt the out-migration from its older big cities. The results would have been miserable if international in-migration had not stemmed the outflow of population.
Texas has accomplished balanced in-migration into its older city centers where California has failed. The Texas incentive model is performing better than the California disincentive model as far as sustaining the center of its older big cities while Texas suburbs are booming at the same time. Texas is accomplishing what 75 years of public housing and lending policies could not in California: an older city core that is attracting a “return to the city” by domestic and international migration and concurrent suburban growth.
Read the whole thing.
And while we’re on the subject, this piece on the dynamism of Houston is worth reading as well.
Tags: California, Economics, Houston, Texas