Low costs of living
Besides the endless opportunities the different sectors in Texas provide for the start and growth of your business in the US, Texas also offers a great lifestyle. First of all, the employees don’t pay personal income tax to the state and there is also no corporate tax. Also the costs of living are lower in Texas compared to other states.
The mild regulations and weak unions result in lower costs to start a business in Texas. Utilities like gas, water and electricity are also relatively cheap, because Texas has his own power grid and Texas still provides his own oil and gas.
Texas is a massive state and because of this land-richness real estate is relatively cheap. Also the strong economy, low employability rate and excellent school system, makes Texas an attractive state to move to with your family members.
The cost of living as calculated by PayScale, gives a grasp on how much the differences are. We have compared the cost of living in Austin Texas with other technical hubs like Boston, Chicago, New York City, San Francisco and Seattle. The cost of living is based on the following categories: Groceries, Housing, Utilities, Transportations and Health Care. So for example,the overall cost of living is 48% lower in Austin, compared to San Francisco and 59% lower when compared to NYC.
Texas is wanted
Texas is hot and wanted. According to a report released by the Census Bureau on 2021, Texas is home to 3 of the 5 fastest growing cities by percentage in the US.
With respect to numeric change, cities in Texas are among those that have added the most people this decade. Two of the fastest growing cities by numbers are in the top 5, with San Antonio and Frisco as #1 and #3 on the list.
Reasons for attractiveness
Why is it that Texas has been able to retain its business attractiveness for such a long period? One of the reasons is the pro-growth policy decisions. The motto of the city is to keep Texas ‘the beacon of opportunities’ and business and political leaders in Texas know that they have to keep this motto going.
After taking office, Gov. Abbott has continued and perhaps even intensified the business-friendly culture that was built by his predecessor, Gov. Perry. In Texas business and industry are working hand-in hand with policymakers to create an open market where business can prosper. Gov. Abbott has used the Texas Enterprise Fund as a ‘deal closing fund’ to attract new jobs and investments to the state, which makes it easier for company decision-makers to choose Texas as the state to relocate their facilities.
The perceived attractiveness of the lone star state is not only influenced by taxes and regulations, but also on migration between states and wise policy decisions; a lot of taxpayers have changed their state of residency to Texas in the past few years.
Another reason for the Texas’ business attractiveness is industrial diversification. Through industrial diversification, Texas has often been able to overcome a decline in economic output resulting from lower oil prices and continues to court companies with its so-called ‘pro-business environment.’
Historically, Silicon Valley and Seattle have been seen as the tech meccas for the US, but over the last two decades this has changed. More and more companies that once looked at a location on either American coast as an advantage are now considering the logistical and cost advantages of locating in Texas.
One good example is the North Dallas area, where a growing number of big companies are deciding to locate or relocate operations. Toyota, for example, is in the process of moving his headquarters and 4000 jobs form Torrance, California to Plano, Texas in 2017.
Another example is Austin, where many tech related companies have moved in from California, both from LAX and Silicon Valley, attracting and offering many opportunities for workers and start-ups in the tech-industry.
And there are more workers to be transferred from the Californian offices to Texas than anticipated, because employees found out what kind of houses and lifestyle they can buy for the same money compared to California.
As the 9th largest economy among the nations of the world and home to 50 Fortune 500 headquarters, Texas offers the best business-friendly climate in the US—with no corporate income tax and no personal income tax—along with a highly skilled workforce, easy access to global markets, robust infrastructure and predictable regulations.
All these reasons always give Texas the first places of states with the best business climate. One of the most important reports are from Business Facilities Magazine, which recently ranked Texas as the no. #1 business climate in America.
“Texas has established its hegemony in an impressively diverse array of growth sectors. A rapidly expanding skilled workforce, solid infrastructure, readily available renewable energy and a vibrant innovation ecosystem are just a partial list of the must-haves TX puts on the table for corporate site selectors evaluating locations for their next project”, the magazine said.
Texas is committed to maintaining its position as the best state for business, and passed legislation providing over $4 billion in tax relief for businesses. Not to mention, Texas is home to one of the largest, most competitive deal-closing funds in the nation, the Texas Enterprise Fund.
The Lone Star State is also top ranked in startup ecosystem, FDI investment, tech jobs, fastest growing states, among other areas.