Texas home prices are quite low by national standards. A month ago a friend of the other DrC bought a nice, little 3 bedroom, 2 bath home with a large backyard in a decent neighborhood of a small Texas city for less than $70,000.
Add to low home prices the absence of state income taxes. Put these two together and a firm can pay its Texas workers substantially less gross salary than would be required to sustain the same standard of living in California, New York, or Massachusetts.