Boomtowns are a staple of American history – and with the tech exodus from Silicon Valley to Austin, Texas, Elon Musk believes that Austin will be the biggest boomtown in the last 50 years. But why exactly are so many businesses moving? Is the change beneficial for employees and is the hype even real?
Notable Business Relocations
For ten years, employment growth in Austin was higher than in Texas and the U.S., with the past 11 years seeing Austin as the top U.S. city for business relocations. Indeed, almost 1,800 companies left (some might even say fled) California for Texas over the years – in 2020 alone, 35 businesses relocated or opened new facilities.
Over the past several years, notable companies, such as Google, Amazon, SpaceX, Facebook, Canva and Oracle, opened offices. Other massive enterprises, including Apple, Target, Kroger and TikTok, have also led to the booming job market. Significant jobs created upon expansion/move are as follows:
- Apple: 5,000 to 15,000
- Target: 125
- Kroger: 160
- TikTok: 750
Not only is Austin an attraction for big corporations, but small businesses too. WalletHub ranked Austin as the eighth best place to start a business; there has also been over 11% growth in the number of small businesses.
Why are Businesses Moving to Austin?
A better question is why businesses are leaving Silicon Valley. Plenty left before 2020, but the strict regulations of the pandemic combined with high housing costs and high tax rates made it even less optimal to conduct business in the area. In addition to remote work trends, the pandemic allowed companies to reconsider where they work, causing many to move from traditional hubs like Silicon Valley.
The economic appeal of Austin is that it is affordable, with lower commercial property costs and no state income tax. Similarly, the city has a Business Expansion Incentive Program that rewards qualifying companies with tax and wage reimbursements.
Another allure of Austin is that it offers alternative political views to other southern cities. Likewise, the booming city has massive potential and could be a foremost player on the global stage.
Businesses are also excited about Austin because of its lively culture – the work-life balance will help companies recruit and retain top talent.
Why Are People Moving to Austin?
It’s not just the businesses taking advantage of the biggest boomtown in the modern era, but individuals and families. People are flocking in droves to experience the high wages, new job market, lower living costs and no personal income tax.
And although the cost of living is increasing, someone making $130,000 in San Francisco only needs to make $68,00 in Austin to have the same quality of life.
Moreover, Austin is vibrant, with great restaurants, an active music scene and incredible nightlife. The sunny weather is unbeatable, and residents have ample access to the outdoors. Austin also has the number one school district in Texas, the Eanes Independent School District, including 16 colleges and universities.
NMC is Also in Texas
NMC has considerable knowledge of the Texas Hill Country suburbs, neighborhoods and up-and-coming regions outside central Austin. If you think moving to Austin interests you, check out our blog “Best of Austin” and contact us!