Low cost of living

John and Mary Smith a young married couple who recently graduated with degrees in computer science have job offers from a number of potential employers. They are looking at the options and have narrowed things down to Austin, Texas or Silicon Valley in California. Their starting salaries will be $100,000 each and they would like to settle down and buy a home. First off their state income tax in California is $14,600 and in zero in Texas. The average price of a home in California is $600,000 and in Texas $300,000. On a 30 year fixed mortgage this is $3,600 vs $1,800 monthly principal and interest payment. A savings of $1,800 per month is $21,600 per year and add to that $14,600 in tax savings and they have an extra $36,000 per year. They are on their way to Austin.