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Why Austin is Emerging as the Tech Hub of America

The pandemic has been a boon for Austin in terms of employment and a bust for Silicon Valley. As of now, Silicon Valley has only regained about half of the jobs it lost in March and April 2020 according to AP News. Austin, on the other hand, has regained 96 percent of its job losses for the same period per the Austin Chamber of Commerce.

The Advantages of Moving to the Austin Area

It doesn’t take much to figure out why Austin is faring better than Silicon Valley. A one-bedroom apartment in San Francisco costs more than $4,526 a month while the same only costs approximately $1,329 per month in Austin based on data from Built In. The median price for a home in San Francisco is a whopping $1,355,200! And it’s only $371,900 for Austin. Besides, California has some of the highest taxes in the nation.

Not only that but also Texas has no state income taxes. While California is known for its beautiful weather, Texas has enjoyable weather and milder winters compared to the northern states. People love the music scene, food from a diversity of cultures, and an active nightlife. And word is that the “Keep Austin Weird” culture encourages people to find a balance with work and whatever is important to them.

Companies in the Austin Area

Oracle has moved its headquarters to Austin. Tesla is here. Dell has been here for a long time. Palantir has moved its venture capital firm from Silicon Valley to Austin. Palantir Cofounder Joe Lonsdale says he’s already saving a lot of time with the move. He tells Business Insider that Austin is “more tolerant of ideological diversity than SF.”

Moreover, another Business Insider article reveals Dropbox CEO Drew Houston has moved to Austin as did Splunk CEO Douglas Merit and Tesla Founder Elon Musk. Apple is spending $1 billion on a new 133-acre in Austin that will support 5,000 employees with the potential to expand up to 15,000.

Clearly, Austin has a thriving real estate market. After all, WalletHub study puts Austin in the top 10 in multiple categories. This hot market extends beyond Austin city limits in places like Kyle, which are close to Austin and allow homeowners to get more home for their budget.

LinkedIn analysis indicates Austin has the highest tech migration out of any city in the country between May 2020 and April 2021. The city has welcomed almost 1.5 times more employees than the city in second place, which is Nashville. Austin also ranks fourth in the U.S. for tech job posts growth in March 2021 making it a booming place for tech talent.

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