The pandemic and the prospect of remote working have sparked an exodus from New York and San Francisco to sunnier, more affordable cities. Few have benefited more from it than Austin.
Texas capital is attracting more corporate jobs and remote workers than ever before, attracted by lower costs and taxes. The Austin relocations announced earlier this year are expected to create nearly 10,000 jobs. This is the highest number the city has seen in a year, according to the Austin Chamber of Commerce, and it is helping offset the success of Covid-19 on the city’s tourist-dependent restaurants, bars and music venues.
It helps that Texas has no state income tax, that Austin winters are relatively short and mild, and that social distancing is easier in a city where homes are spacious and have lots of backyards. Austin has also managed to stay cheaper than San Francisco, Brooklyn, and Manhattan by building tens of thousands of homes over the past decade.
Tech investor Joe Lonsdale said he and his venture capital firm 8VC would be moving to Austin, and Royal Dutch Shell recently opened a studio to come up with ideas for energy exploration in the city, including who made the move or have planned.
“It’s just a lot easier to rent. It’s much easier to get a place to stay. It’s a lot easier to get business licenses than anywhere else, ”said Greg Schwartz, managing director of real estate startup Tomo Networks. His Stamford, Connecticut company is preparing to open a co-headquarters in Austin.