Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Austin Real Estate Forum
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

645
Posts
493
Votes
Neil Narayan
  • Real Estate Agent
  • Austin, TX
493
Votes |
645
Posts

Why so many corporate headquarters leave California for Texas?

Neil Narayan
  • Real Estate Agent
  • Austin, TX
Posted

When companies move their headquarters out of California, they choose Texas way more than they choose any other state. Since Jan. 1, 2018, some 107 companies have moved their headquarters to Texas from the Golden State, according to Vranich, president of McKinney-based site-selection consulting firm Spectrum Location Services. The next winningest destination in that time period was Tennessee with 22 relocations from California. Put another way, Texas lured five times more California headquarters than its next closest competitor.

Within Texas, Austin and Dallas-Fort Worth are dominating. Why are so many California companies choosing Austin and DFW when they move to Texas?

Austin has successfully portrayed itself as Silicon Hills. So if you're into the whole Silicon Valley ecosystem, as they like to call it, and you want to have that familiarity about you, you go to Austin. If you want to find software writers and people who know how to promote a digitally oriented company, you go to Austin.

https://www.bizjournals.com/au...

Most Popular Reply

User Stats

9,999
Posts
18,562
Votes
Joe Splitrock
  • Rental Property Investor
  • Sioux Falls, SD
18,562
Votes |
9,999
Posts
Joe Splitrock
  • Rental Property Investor
  • Sioux Falls, SD
ModeratorReplied
Originally posted by @Jon Schwartz:

Good grief, you people...

US News and World Report ranks California #2 in the county, only behind Massachusetts, for business environment:

https://www.usnews.com/news/be...

Why? Because CA enjoys more venture capital per capita and more patent creation per capita than any other state besides MA.

TX isn't even in the top 10!

It's great and all that TX has lower income taxes (though certainly not lower property taxes -- which should matter on this forum!), but CA is still a better place to go into business, no question.

  US News and World Report is not a good source in my experience. The "Best States" rankings are subjective because it all depends on selected criteria and weighting. California has the most patents originated, but Texas has the second most in total number. US News just chose to weight the number based on population, so it pushed TX down the rankings, even though they produce more patents that MA. When you weight on population states with a larger group of working class people will have lower per capita patents. Does a company even care how many patents per capita were written in a state? Venture capital money will flow to any state if the business idea is worth it.

Doing a quick Google search looking only at top page results, I found multiple rankings that place Texas much higher than California:

CNBC ranking Texas is 2, California is 32

https://www.cnbc.com/2019/07/1...

Forbes ranking Texas is 2, California is 31

https://www.forbes.com/best-st...

Chief Executive Texas is 1, California is 50

https://chiefexecutive.net/up-...

Bipartisan Tax Foundation state business tax ratings Texas is 11 and California is 49

https://taxfoundation.org/2021...

No doubt California has a strong legacy of innovation and the existing talent base will make the state a powerhouse for years to come. That being said, every major company in the state is diversifying outside California. High cost of living, high taxes and regulation are just not sustainable for a business. Austin has had technology and innovation growth for 40 years, so it is appealing for many reasons. 

  • Joe Splitrock
  • Loading replies...