Why businesses are moving to Austin

Austin has been growing for a while. Nowadays, plenty of companies from other states are moving here. And with them, thousands of people are coming as well. This is an excellent boost for the city and the Lone Star State. But why is this happening? If you’re wondering why businesses are moving to Austin, keep on reading.

Most companies relocating to Texas are coming from California. Recently, we’ve seen tech giants like Tesla and Oracle departing from San Francisco. However, smaller startups like Markaaz are also moving their headquarters. This, of course, doesn’t mean that San Francisco will cease being the center of the tech industry. But there’s an undeniable migration going on.

Let’s dive in and find out what’s behind all of this.

Friendly business climate

Austin has a lot to offer to the companies that choose it as their home. CEOs say that the business process is more straightforward and that people are simply lovely. It turns out that a warm welcome from pro-business local government bodies means a lot to these people. And it’s clear why when you think about it.

The chamber did everything it could to help companies quickly settle and get established in a new city. And they are more than happy to offer the same conditions to smaller companies. That’s why Austin is tops for startups. If this trend continues, we can expect to see more and more businesses following the footsteps of the companies that already came to Austin.

Alt-tag: People sitting at a table talking about why businesses are moving to Austin.

The opportunity to shape the business landscape

We don’t have to stress that Austin isn’t as developed or established as some other locations. However, this is a positive thing for lots of companies.

Markaaz, for instance, wants to be a part of shaping the business climate. That was difficult for them to achieve in California. On the other hand, in Texas, they greeted them with open arms. Because of its’ relative underdevelopment, Austin offers opportunities no other city in the U.S. can. All in all, this is a similar phenomenon that we’ve seen already. The last time it happened, it led to the growth of Silicon Valley. People fled Boston in search of better conditions, and they found them in the Golden State.

Today, the tables have turned. San Francisco started becoming what Boston once was, and people didn’t like that. So, they started looking for new places for their offices. Usually, when companies are relocating, they look for areas that are close to where they currently are. However, transferring your entire business to another state isn’t as hard as it once was. So, companies shouldn’t be worried about moving cross-country.

Cheaper workforce

It’s no surprise that for most companies, taxes are lower in Texas. That’s one of the reasons why they’re relocating in the first place. However, it’s not the only reason.

Some companies, like Oracle, for instance, won’t benefit from lower taxes. They have offices all over America, so there’s no upside for them here. But, the cost of living in California is high. Therefore, they have to pay their employees more. On the other hand, they will not only spend less money on salaries in Texas, but they’ll also be able to give raises. In essence, moving from California to Texas could lead to long-term corporate savings. It all translates to a 5 percent margin that moves straight to profit. So, companies’ top executives will get more significant payouts. Naturally, they like this idea which is another reason why businesses are moving to Austin.

Another benefit that Austin brings with it is the promising source of skilled workers. There are some projections of skilled worker shortages in the state, but local universities assure companies that this won’t happen. This means that finding employment in Austin won’t be problematic in the future. And that is a good thing for anyone living there or thinking about moving. Workers climbing up the stairs.





Not only is the workforce cheaper in Austin, but the local universities also promise that there will be plenty of skilled workers on the market.

Legal threats

Some companies are concerned about the growing number of state-specific laws targeting wealthy people and businesses in the Golden State. For instance, they need to have at least one female director on their board. And by the end of this year, if you have six or more directors, three of them have to be female. Although this isn’t a bad thing by any means, it creates a problem for companies that already operate in a certain way. For example, Oracle has a board of 15 directors, and only four of them are women. This means that they would have to make some significant changes at the top of their command chain, and that’s not something they’re willing to do right now.

There are also talks about California imposing new taxes for individuals that hold more than $30 million and for the ones who are making more than $1 million a year. On top of that, corporations are asked to help raise billions of dollars to support the needs of the state’s homeless population. It’s not a surprise that giant companies are more than willing to move to avoid this.

However, it’s not all about the tax policy. There’s also a problem with housing in California. For decades, they haven’t been building enough of it. Texas, on the other hand, doesn’t have this problem. They have more than enough housing options for new residents. Thereforeit may be an ideal time for investing in commercial real estate here.






Big companies don’t like to change the way they operate, and that’s why they’re moving to Austin.


Silicon Valley has been the place to be for tech companies for quite some time. But, exorbitant housing prices, high taxes, and new regulations have made it challenging to do business and develop at the same time.

With the COVID-19 pandemic, companies have found ways to implement work from home strategies. And that system works better when the overall cost of living is low. So, the biggest reason why businesses are moving to Austin is that they’ll have more flexibility and room for growth.

Author’s bio:  Thomas Campbell is an Austin based freelance writer currently working with Heavenly Moving and Storage. He loves to help people with his expertise in moving, business, and marketing. When he’s not writing, you can find him walking or cycling beside the Colorado River.

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