Austin has been deemed the number one startup hub for the second year in a row. Each year, the Kauffmann Foundation releases its index of startup rankings in the U.S. The ranking is based on various factors, including the percentage of adults who become entrepreneurs within a given month. Austin has toppled huge tech hubs like Silicon Valley for two consecutive years. For homeowners, this means increased stronger home equity as would-be entrepreneurs relocate to the area and contribute to the job market.
Silicon Valley, which is the area including San Francisco and San Jose, are the home of huge technological hubs like Apple and Google. Though typically considered the world’s tech epicenter, Silicon Valley has dropped down to number 8 on the list. The decline is attributed to the rise in cost of living, steep taxes, and strict regulations for businesses in California.
Texas Dominates Startup Index
As the cost of doing business in California continues to soar, aspiring entrepreneurs are ditching higher-priced metros in favor of taking up shop in less expensive cities. In fact, every major city in Texas – Austin, Houston, San Antonio, and Dallas – is on the list as top 15 startup cities. It’s not surprising, either, as Texas seems to be unbeatable as the best state in the nation for businesses.
One important factor in the friendly state’s ability to attract and maintain so many new businesses is the affordable cost of living. Compared to California and New York, Austin allows a much more robust lifestyle at a fraction of the cost. Austin is set apart from the rest of the state, with events like SXSW and Austin Startup Week that make the city an ideal location for a new venture.
Austin is the Standout City for Startups
Budding business-owners have taken notice. Austin has experienced steady economic and population expansion over at least the last five years. The state capitol now rivals larger metros in terms of economic strength. While the economy has benefitted from business growth in the area, the real estate market has expanded in kind. Job-seekers from across the country flock to the Austin area in search of employment and a better quality of life.
Homeowners in the area benefit from the new businesses as homebuyers flood the local real estate market and strengthen home values. Austin real estate has been setting sales and pricing records for at least the last five years now, and there’s no sign of an immediate housing slump in sight. In fact, with mortgage rates expected to rise along with home prices, homeowners are encouraged to take advantage of the current marketplace if they’re considering selling.
Read more about the Austin economy.