CNBC recently stirred the pot by releasing a list of the top 10 worst states to live and work in, and Texas, with its nearly 30 million residents, was named the worst. I’ve been to Austin and Houston for work a few times and they seemed like great cities with some delicious steaks. Plus, there’s no state income tax, which is a bonus! But I didn’t really get to explore much since I was mostly meeting clients.
So, for those who live or have lived in Texas, is it really that bad? I know the humidity can be intense and the property taxes are pretty high. I wonder if all those people who moved to Texas during the pandemic for a cheaper lifestyle are regretting their decision now?
Texans on social media often criticize Californians for their weather, politics, taxes, cost of living, and lifestyle. But now we have an independent third party criticizing Texas! What’s up with that?
For the record, I’ve never criticized any city or state before. I’ve just shared my thoughts about living on the East and West Coasts based on my experiences. And I lean towards the West Coast after spending more than a decade on each side.
Here are the top 10 worst states to live and work in according to CNBC:
- Texas
- Oklahoma
- Louisiana
- South Carolina and Alabama (tie)
- Missouri
- Indiana
- Tennessee
- Arkansas
- Florida
Three commonalities stood out among these states:
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They’re some of the hottest states. For half the year, it’s scorching in states like Texas, Oklahoma, Louisiana, and Arkansas. But Arizona, which averaged over 100 degrees F for 30 days this summer, is missing from the list. So, extreme heat isn’t the only factor in a state being considered one of the worst.
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They’re all Republican (red) states. All 10 of the worst states in America are majority Republican states, which seems unlikely since the country is split roughly 50/50.
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They’re poorer states measured by average household income. The worst states to live and work in have lower household incomes.
Interestingly, Texas is at #33 for mean household income, which is pretty good. It ranks in the top half of all states. So, money isn’t the biggest factor in being ranked the worst state.
CNBC’s ranking methodology considers multiple quality of life factors, including crime rates, environmental quality, and healthcare. They also look at the quality and availability of childcare, protections against discrimination, voting rights, and reproductive rights.
CNBC’s global headquarters is in New Jersey, and it also has a big office in New York. Both are Blue states. So, it’s hard to see CNBC ever criticizing these two states.
Best and worst state rankings are always interesting because they make us question our livelihoods. Given that Americans are free to live in any state they want, we might get offended when our state is ranked poorly.
I’ve lived in Virginia, New York, and California. My life in Virginia was average as a high schooler, but got better as a college student. New York was fun in my 20s, but I was too tired from working every day to fully enjoy it. When I moved to San Francisco, California in 2001, I felt like I had finally found a city to call home.
The best and worst states to live and work in are subjective measurements with no absolute truths. If you dislike your state, find a way to move. Apply online for jobs in a new state. If money is tight, take a bus and visit another state on your next vacation. The more we see of America, the more we can appreciate our great country.
Let’s not get distracted by which state is better than another. Instead, let’s go out and explore more!
Do you agree with the worst states in America to live and work? Why or why not? For those of you who live in Texas, Oklahoma, Louisiana, etc, please share some great things about your state! Do you think CNBC is biased against Republican majority states?
Although Texas may be considered the worst state to live and work according to CNBC, it’s one of the best states to buy real estate. After mortgage rates rose since 2022, Texas home prices fell. As a result, there are better bargains.
Texas is home to leading companies and is attracting a tremendous amount of migration. No state income taxes and more affordable housing are big draws. Demographic trends to Texas and other Sunbelt states may last for decades due to technology and work-from-home.
To invest in Sunbelt real estate, check out Fundrise and Crowdstreet. They offer funds that mainly invest in residential and industrial properties in the Sunbelt, where valuations are lower and yields are higher.
I’ve personally invested $954,000 in private real estate since 2016 to diversify my holdings, take advantage of demographic shifts toward lower-cost areas of the country, and earn more passive income. We’re in a multi-decade trend of relocating to the Sunbelt region thanks to technology.
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