Austin is the capital city of Texas, but it might also soon become the new U.S. tech hub capital. Since 2016, Austin has seen a rapid increase in tech companies, quickly outpacing the U.S. national average.
But will this trend continue? And what does it mean for California’s Silicon Valley? Read on to find out why Austin, Texas, might be the new American tech hub and what lies ahead for this city’s major tech enterprises.
Why tech businesses are moving to Austin
Thanks to the city’s lower corporate tax rates, affordable housing, and unique culture, many tech businesses have migrated to Austin over the last decade. As of 2020, this capital city has continued to lead in tech job growth.
Austin is an excellent destination if you’re looking to work in the tech industry. But, of course, you’ll want to appraise yourself of things to know before moving to Texas before you jump straight into a relocation.
For example, you’ll want to learn about the culture and history of Texas before signing a lease or buying property in the Lone Star State. It’s also helpful to take a moment to check out a map of Texas. After all, Texas is home to more than two-hundred-fifty counties, each with distinct policies, neighborhoods, and industries.
If you’re looking for a position within the tech industry, it’s also worth noting that Austin’s future as the new U.S. tech hub isn’t written in stone. Instead, it’s a tenuous position that could change if corporate tax policies or housing opportunities no longer remain attractive.
The future of Austin’s tech enterprises
When considering the future of Austin’s tech industry, it’s crucial to consider the reasons why it’s attracted such a large number of tech companies. These reasons include affordable housing and lower corporate tax rates.
If Austin cannot maintain these beneficial aspects, it’s unlikely that its recent tech boom will continue. Notably, the corporate tax rate in Austin is only about 0.59% lower than the corporate tax rate in Silicon Valley.
Additionally, housing prices in Texas increased by more than $100,000 between 2010 and 2020. As the Lone Star State population continues to explode, these prices will likely skyrocket.
Consequently, many of the factors that have lured tech companies to Austin may soon be a thing of the past. The only remaining factor that might keep businesses tethered to Texas’s capital is the vibrant culture and diverse, arts-driven population.
Other Texas cities vying for the role of the new American tech hub
Austin isn’t the only Texas city that’s seen an immense increase in tech companies and tech-related businesses over the last decade. Dallas and Houston are also quickly rising in the ranks as some of the most attractive destinations for tech startups.
So, even if Austin eventually goes the way of Silicon Valley, there’s a good chance that Texas’s other major metropolitan areas will pick up the slack and attract tech enterprises.
Austin consistently ranks as one of the best U.S. cities for tech jobs, in no small part due to the city’s enormous tech-focused business growth. The Lone Star State will likely continue to attract tech companies and employees over the coming years. However, rising home prices and a rapidly increasing population may eventually cause stagnation within the Texas tech industry.