Texas and Arizona are both great states to live in, but they offer different benefits depending on what you’re looking for.
If you want a strong job market, Texas may be the better choice. If you prefer warm weather and lots of outdoor activities, Arizona is arguably the better state. Housing and lifestyle preferences may also sway your decision. For example, Texans are known for their hospitality while Arizonans enjoy a more relaxed way of life.
Both states have their pros and cons, but in the debate between Texas vs. Arizona, the choice ultimately depends on your priorities and preferences. Let’s take a look at the job market, weather, housing, and lifestyle in both to see which appeals to you more.
Texas vs. Arizona: 8 Factors To Consider Before Relocating
Whether you’re contemplating relocating from another state or deciding to move out of Texas to Arizona, or the other way around, considering these factors will help.
1. Job Market
Job opportunities in Texas and Arizona are strong in 2022, although they may look and feel different depending on the city.
In general, the overall job outlook is stronger in Texas than it is in Arizona. In both states, business-friendly regulations and a low tax burden make them attractive for high-growth companies. However, Texas has a larger share of its economy built on technology and engineering, while Arizona’s economy is more diverse.
In a report by WalletHub on the best U.S. cities to look for a new job in 2022, Austin, Texas ranks fifth with a total score of 63.6, while Scottsdale, Arizona occupies the eighth spot with a 63.43 score.
The analysis evaluated over 180 cities based on 31 key metrics of job market strength, including the availability of job opportunities, the monthly average starting pay, and employment growth.
In terms of specific job market prospects, Scottsdale ranked 7th while Austin logged 8th. However, when it comes to socioeconomic conditions, Austin is higher up at 15th place while Scottsdale is 17th.
The unemployment rate in Texas as of November 2021 is 5.2% while it is at 4.7% in Arizona, according to the Bureau of Labor Statistics.
2. Weather
Is Arizona hotter than Texas? Arizona’s climate is typically very hot during the summer months but can get quite chilly during the winter season. It has less rainfall than Texas year-round, so if you prefer dryer weather it might be the better option for you.
3. Housing
Housing costs are slightly higher in Arizona than they are in Texas, but it depends on which city you want to be in. Pricing factors may be attributed to average home sizes and the presence of rent-controlled properties. In addition, while the cost of living is relatively close between the two states, this statistic can vary drastically due to local factors like employment rates and median income levels.
As of December 2021, the median price for a house in Phoenix, AZ, which has 37 neighborhoods, was $431,000, or around $262 per square foot. This is up 28.6% from the previous year. In Scottsdale, which consists of 21 neighborhoods, the median price is almost $800,000, or $381 per square foot.
Meanwhile, in Dallas, TX, which has 121 neighborhoods, the median listing price for the same period was $415,300, or about $223 per square foot. In Austin, TX, where there are 83 neighborhoods, the price for a home is higher, with a median of $579,000, or $320 per square foot.
4. Leisure Activities
There is no shortage of entertainment options in either state, with each having its own unique attractions.
A popular pastime in Texas is going to the Dallas Cowboys/Cowgirls or Houston Texans games. There are also a variety of other professional sports teams that residents can enjoy cheering on, such as the NBA’s San Antonio Spurs, MLB’s Texas Rangers, and NHL’s Dallas Stars.
Arizona is home to many different sports teams too, including the NFL’s Arizona Cardinals, MLB’s Arizona Diamondbacks, NHL’s Arizona Coyotes, and MLS’ Phoenix Rising FC.
The Grand Canyon attracts thousands of people every year, so there are always great opportunities for enjoying beautiful scenic views. Arizona also has over 1,100 lakes and 14 beaches, so it is the perfect place to go boating or swimming during the summer months. It also offers many trails that provide an escape from the hustle and bustle of daily life.
5. Opportunities for Small Businesses
Those looking to establish their own businesses will do well in either state, although the main limiting factor might be finding qualified employees — depending on your industry. US News’ ranking of the best states for education lists Texas in the middle with a #34 rank, while Arizona lags towards the tail at #46.
Good news, though, if you’re from outside of these states and are looking for a chance to shine in any of the top companies with headquarters in either AZ or TX, then you may have a strong chance of getting hired over the local competition.
According to the Small Business Administration, in 2021 small businesses made up 99.8% of Texas businesses (over three million ventures), with 4.9 million employees (or 45.1% of the Texas workforce). This is spread out across various industries, mostly in the construction and professional, scientific, and technical services fields.
Meanwhile, in Arizona, small businesses made up 99.5% of AZ businesses (over 610,000 ventures), with 1.1 million employees (or 42.9% of the AZ workforce). The top industries covered real estate and rental and leasing and professional, scientific, and technical services.
6. Top Workplaces
Texas houses several Fortune 500 companies, including Exxon Mobil, HEB Grocery Company, Dell Technologies, and Texas Instruments. Arizona also has some notable Fortune 500 companies including Berkshire Hathaway, State Farm, American Express, Liberty Mutual Insurance, and more.
Browse through our list of best companies hiring in Arizona and Texas.
7. Cost of Living
The cost of living index for Texas in 2021 was 92.3 while the cost of living index for Arizona was 97, according to the World Population Review. Factors that determine the cost of living include housing, groceries, transportation costs, energy bills, livable wages, and health care.
Looking at CNN’s Cost of Living Calculator, a person who earns $50,000 in Phoenix, AZ will have a comparable salary of $53,392 in Dallas, TX, where groceries, housing, utilities, and healthcare are slightly more expensive. For added comparison, somebody who earns the same in Houston, TX will have a comparable salary of $59,382 in Flagstaff, AZ, where only utilities are cheaper.
8. Top Neighborhoods in AZ and Texas
Arizona has a whole host of neighborhoods dedicated to retirees and relaxing in the sun. These neighborhoods include The Boulders, Paradise Valley, and Ventana Canyon. Arizona also has a wide variety of mountain communities, such as Flagstaff’s “Tree Town USA” and the upscale resort town known as The Village of Oak Creek just outside Sedona.
The top neighborhoods in Texas are similar to those in Arizona with many being great places for retirement or vacationing/relaxing by the beach. For example, Texas is home to South Padre Island, which is known for its beautiful beaches perfect for summer getaways. Other notable Texas neighborhoods are Garden Ridge, located near San Antonio, and the community known as Memorial City, which offers upscale entertainment and great dining options.
Texas or Arizona: Where To Live? Frequently Asked Questions
Still on the fence in the Texas vs. Arizona debate? We’ve answered some of the most asked questions below.
1. Which state is more affordable?
In short, Texas. The cost of living index and median housing prices are lower in Texas than in Arizona, but that also depends on the neighborhood you are in. Living in Yuma, AZ, for example, will be cheaper than staying in Phoenix, same with living in Fort Worth, TX compared to Dallas. In addition, while affordability has a huge bearing on your decision on choosing Texas or Arizona to live in, don’t forget that there are also other elements to consider before relocating.
2. Which state has better job opportunities?
Texas. When it comes to top workplaces, Texas overwhelmingly dominates Arizona in this category with many iconic companies calling it home. It seems that both states have fairly similar job opportunities throughout the state in 2022, though, depending on the type of industry you want to be in. Arizona does have several multinational firms in its backyard that offer robust employment packages.
3. Which state is better for retirees?
Arizona. As far as retiring goes, many of Arizona’s neighborhoods are perfect for relaxing and enjoying life to the fullest. These popular towns offer great amenities alongside peaceful serenity that could be what you’re looking for when it’s time to retire. For those who want to settle near water or by the beach, South Padre Island offers beautiful waterfront views and great access to all types of activities, including boating and fishing.
4. Which state has better weather?
Arizona. Arizona is considered to be the desert state, so temperatures are generally higher throughout the year. However, with low humidity and many breezy days, you might hardly even notice the hotter weather.
Meanwhile, Texas has mild winters with cool fronts, but summers can feel brutal with extreme heat and high humidity levels. One saving grace for Texans is that they receive less snow than most states in the U.S., whereas Arizona gets consistent light snowfall almost every winter. Nonetheless, both states have beautiful landscapes perfect for hiking, camping, biking, golfing, and more.
5. Which state is better for families?
Texas. As far as education goes, Texas has a wider and more prominent school network for all ages. The top school districts in Texas are all ranked among the top 100 nationally by US News. With more opportunities for better education and lower costs of living, it makes sense that Texas would be a great place for families.
Arizona or Texas: Which State Is Best For You?
After comparing Arizona vs. Texas, it’s clear that both states offer unique experiences that should appeal to people interested in moving. Whether you’re looking for an affordable retirement home with mild winters or low housing expenses, both states will meet your needs. However, if you want slightly higher job and business opportunities, take a look at some communities throughout Texas.
We hope this guide offered you some helpful information and inspired you to learn even more on your own. We encourage you to take a look at our other comparison guides on states such as Texas vs. Florida and Arizona vs. California.
If you’re on the market for your next career move in either Texas or Arizona, Best Companies Texas and Best Companies Arizona can help you find that next perfect role. Get in touch with our teams today.
