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Austin No. 1 City Gaining Company Migrations from California

Austin continues to grow from California residents and business relocations. A recent study by Joseph Vranich of Spectrum Location Solutions revealed more than 13,000 companies have left California for friendlier locations, with Austin being the No. 1 city to gain the California migrations. The study also ranked Texas as No. 1 in the Top 10 states gaining the most from California business relocations, a distinction Texas has held for the past decade.

“During the study period, $76.7 billion in capital funds were diverted out of California along with 275,000 jobs – and companies acquired at least 133 million sq. ft. elsewhere – all of which are greatly understated because such information often went unreported,” according to the study.

The Austin Business Journal summarized that “Departures are understandable when year after year CEOs nationwide surveyed by Chief Executive Magazine have declared California the worst state in which to do business,” said Vranich, a corporate relocation expert who jokes that he loves California’s weather, but not its business climate. Until recently, Spectrum and Vranich were based in Irvine, Calif. Texas, on the other hand, consistently ranks as one of the best states to do business in.”

The top 10 states starting in the order of those that gained the most from California business relocations were:

  1. Texas, which has held the first-place distinction for at least a decade
  2. Nevada
  3. Arizona
  4. Colorado
  5. Oregon
  6. Washington
  7. North Carolina
  8. Florida
  9. Georgia
  10. Virginia

The top 10 cities gaining company migrations from California were:

  1. Austin
  2. Reno, Nev.
  3. Las Vegas
  4. Phoenix
  5. Seattle
  6. Dallas
  7. Portland, Ore.
  8. Denver
  9. San Antonio
  10. Scottsdale, Ariz.


The report’s ranking is based only on cities, not metro areas. Fort Worth, Houston, Pittsburgh, Atlanta, Indianapolis and Nashville also ranked among the top twenty.

Vranich further details the Texas metro market migrations in the Austin Relocation Guide. Metropolitan areas benefiting from California divestment events show Austin-Round Rock-San Marcos in the top spot, followed by No. 2 Dallas-Fort Worth-Arlington, and No. 10 San Antonio, which was tied with Salt Lake City. Of the Top 15 destination metropolitan communities benefiting from out-of-California Austin tops the list, followed by No. 6 Dallas, No. 8 San Antonio, No. 11 Houston, No. 13 Irving and Plano (tied) and No. 14 Fort Worth.”

The new 2018 Migration Trends study by residential real estate brokerage site Redfin shows California is the top source of people from other metro areas shopping for homes in Austin. KVUE reported that in the Austin area, the biggest generator of inflow (more people seeking to move to area than leave it) was from San Francisco, unsurprising considering both cities are hubs for the technology sector. In Dallas, the L.A. area produced the most potential newcomers.

With the California migrations, it begs the question, how is Austin doing today?

The Austin Chamber of Commerce recently reported:

  • Austin added 36,800 net new jobs, growth of 3.5%, in the 12 months ending in December, making Austin the fourth fastest growing major metro.
  • In Austin, the industry adding the most jobs and growing the fastest is wholesale trade which grew by 6,900 jobs or 12.8% over the last 12 months. Also growing at faster-than-average rates are construction and natural resources (8.1% or 5,000 jobs) and other services (4.4% or 2,000 jobs).
  • Austin’s seasonally adjusted unemployment rate is 2.9%, up from 2.8% in November. Unemployment has been at or below 3.0% for the last 16 months.
  • For new home construction Austin ranked number 1 in the nation in per capita building permits through midyear 2018 with a projected increase over 2017.
  • Home prices are rising with a median home price increase of approx. 4% in 2018.
  • Incomes are rising with total personal income in the Austin metro growing by 6.4% in 2017, the 5th fastest growth rate among major metros.

We continue to see growth in Austin, and we welcome California transplants to make Austin their home.

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Resources:

Austin Business Journal – https://www.bizjournals.com/austin/news/2018/12/13/1-800-companies-left-california-in-a-year-with.html 

The Kumar Law Firm – https://thekumarlawfirm.com/lawyer/2018/12/31/Business-Law/California-Businesses-Flock-to-Texas_bl36525.htm

KVUE – https://www.kvue.com/article/news/local/california-homebuyers-continue-coasting-into-austins-real-estate-market/269-608008889 

PRWeb – https://www.prweb.com/releases/record_number_of_companies_departing_california_study_urges_more_to_leave/prweb15977005.htm

Redfin – https://www.redfin.com/blog/2018/10/q3-2018-migration-report.html

Culture Map – http://austin.culturemap.com/news/real-estate/10-25-18-homebuyer-interest-in-austin-california-san-franscisco-redfin/

Austin Chamber of Commerce – https://www.austinchamber.com/blog/01-22-2019-job-growth-unemployment

Austin Chamber of Commerce – https://www.austinchamber.com/economic-development/business-climate/economic-perspective

Austin Relocation Guide – http://www.austinrelocationguide.com/Austin-Wins-Big-as-Companies-Leave-California/

Slow and steady growth for the Texas economy

 

 

 

 

 

 

 

 

 

 

 

I have said before, 2017 is looking very hopeful – reports are predicting a slow and steady growth. We may not increase at a rate that we have in the past, but we are still on the rise. This is confirmed by the Federal Reserve Bank of Dallas and the Austin American Statesman. The Federal Reserve Bank of Dallas released their Regional Economic data for December 2016, and all major metro business cycles indexes increased, except for a small dip for Houston.

The Austin American Statesman reports that Texas is ready to shift into 2nd gear in 2017. According to AAS, Keith Phillips senior economist of Dallas Fed, reported that, “Texas employers should expand payrolls by 2 percent this year, about 242,000 jobs. While far lower than the state’s long-run average, which typically exceeds national job growth rates, the job gains in 2017 are expected to surpass the estimated 1.6 percent annual growth rate through November of last year.”

Phillips said, “Texas still fared better than most energy states. And the Interstate 35 corridor, particularly Dallas and Austin, remained an exception to the otherwise modest growth in Texas.”

Phillips went on to say, “job growth picked up in the second half of 2016 due to a stabilization of the energy sector,” he said. “With that positive momentum, the Texas economy enters 2017 poised to shift into ‘second gear.”

Hear first hand from Phillips on how our Texas economy will be “slightly better than last year”.

Mine Yucel, Dallas Fed’s director of research, supported this with, “Despite the sharp drop in oil prices that sent the energy industry into a tailspin over the past two years, Texas did not drop into a recession at any point. And the modest recovery in commodity prices has helped stem the bleeding of oilfield services jobs and helped buoy statewide manufacturing outlooks.”

For more insights into the economy and how this will affect your business, please subscribe to my updates.

SOURCE:
https://www.dallasfed.org/research/econdata/metro9tab.aspx
https://youtu.be/IaoHg499HEg
http://www.mystatesman.com/business/economists-texas-economy-pick-2017-but-modestly/PY8GfgB4e0hndibj1oOK8J/?ref=cbTopWidget

Two Top 10 lists in one: Top 10 New Year’s resolutions and the Top 10 cities for job seekers

A new year is full of potential – the promise of what is to come. People make resolutions and promises to themselves on what they want to accomplish or how they will improve in the year to come. Curiosity has gotten me when it comes to the resolutions people make, especially as we enter into the post-New Year’s Day weeks where these promises to ourselves begin to become less of a priority.

According to Inc.com the Top 10 New Year’s Resolutions are:

  1. Diet or eat healthier (71%)
  2. Exercise more (65%)
  3. Lose weight (54%)
  4. Save more and spend less (32%)
  5. Learn a new skill or hobby (26%)
  6. Quit smoking (21%)
  7. Read more (17%)
  8. Find another job (16%)
  9. Drink less alcohol (15%)
  10. Spend more time with family and friends (13%)

Not too far off from what I was thinking: be healthier, kick an old habit, save money, advance your career… I don’t think there are any huge surprises on the list. Today I want to focus on one in particular – finding another job. If your resolution happens to be in line with #8, one of advancing your career or finding a new job then, this will come as good news to you. According to NerdWallet, Austin is the best city for job seekers.

Here are the Top 10 lists of cities for job seekers:

  1. Austin, TX
  2. Denver, CO
  3. Nashville, TN
  4. Seattle, WA
  5. Durham, NC
  6. Atlanta, GA
  7. Minneapolis, MN
  8. Lincoln, NE
  9. Irving, TX
  10. Raleigh, NC

The report analyzed federal data for the 100 largest cities to see where there is the most potential coupled with affordability. Data included the U.S. Bureau of Labor Statistics, the increase in the working-age population from 2010-2015 with U.S. Census Bureau data, as well as census data for median earning and monthly rent in each city to factor in the cost of living.

Laura McMullen & Sreekar Jasthi at Nerd Wallet summarize the Top 10 list by saying job seekers should follow the young people, find fast growing hubs (like technology or healthcare), and head to the state capitals. And wherever you are, volunteer to grow your professional and friend network. They say to surround yourself by people who know and like you and want to help you. I could not agree with this more.

Two Texas cities made the list. Austin at #1 and Irving at #9.  Austinites understand this, but for those looking to change up your career or job here is a breakdown for you on why Austin and the Dallas area could help you fulfill your new year’s resolution.

Low unemployment

Unemployment in Austin was 3.2% in October 2016 and 3.6% in Irving. Texas unemployment held steady in December at 4.6% overall. And, according to Sterling’s Best Places, “the unemployment rate in Irving, Texas, is 3.60%, with job growth of 3.09%. Future job growth over the next ten years is predicted to be 42.59%.”

High quality jobs in technology

Bureau of Labor Statistics’ 2014-2024 employment projection says that technology is one of the fastest growing in terms of output. Austin is no stranger to technology, being the home of two major technology companies, Dell and IBM, with many other companies following suit, like Apple. Forbes argues that Austin is the most attractive tech hub attributing the draw to the “young, educated population, large VC presence and burgeoning restaurant and music scene”. Companies see the potential of Austin’s labor pool and are taking advantage of this to grow their tech advantages.

According to Christopher Calnan at the Austin Business Journal, “Texas ranks No. 2 in the nation for number of tech jobs, 585,614, second only to California. And, tech companies accounted for 6 percent of the Lone Star State’s private sector jobs, the report by Computing Technology Industry Association found.”

Attractive salaries

So, the jobs are here, and per CIO.com Austin salaries are 106% of the national average. Not too bad. For a detailed look at wages, here is snapshot of tech salaries by industry from the Austin American Statesman. In addition, the Salary Increase Forecast for U.S. Jobs projects a 3.3% increase in tech salaries from the 87K median salary as reported by the Economic Research Institute.

This is exciting news for our city.

Job growth in healthcare

On the healthcare side Will Anderson with the Austin Business Journal says that, “in the health care sector, the opening over the summer of the Dell Medical School is expected to accelerate the development of a business ecosystem that combines the city’s existing care centers with entrepreneurial startups and innovators in medicine.”

Irving attributes much of its growth to technology. According to the Irving Chamber of Commerce, “Irving was recently ranked number three for tech startups per capita in the United States by American Express through research conducted by SizeUp.com. In addition, the City of Irving is the first city in Texas and the second in the nation to earn the Malcom Baldrige Quality Award.”

The Irving Chamber of Commerce also notes that “five of Irving’s approximately 50 Fortune 500 companies have chosen Irving for their global headquarters: Celanese, Commercial Metals, ExxonMobil, Fluor and Kimberly-Clark. Irving is home to more of the DFW Metroplex’s largest private and public companies than any other city except Dallas, including Citi, Microsoft, Verizon, NEC Corporation, Allstate Insurance Company, Time Warner Cable, RIM (BlackBerry), Aviall, Michaels Stores, Pioneer Natural Resources, CEC Entertainment and TXU Energy.” These companies choosing Irving, TX as their home base no doubt makes it a hot bed for career opportunities for job seekers.

So, how about it, are you ready to make the move to one of our great Texas cities? The opportunity is definitely here.

And, of course, I would love to help you with Resolution #7. If you are trying to read more, please subscribe to my updates.

SOURCE:
https://www.nerdwallet.com/blog/finance/best-cities-job-seekers-2017/
https://www.bls.gov/news.release/ecopro.nr0.htm
http://dfw.cbslocal.com/2017/01/20/texas-unemployment-holds-steady-in-december/
http://www.bestplaces.net/economy/city/texas/irving
http://www.erieri.com/nationalcompensationforecast
http://www.bizjournals.com/austin/blog/techflash/2016/03/texas-among-tops-in-nation-for-technology-jobs.html
http://www.irvingchamber.com/edc/
http://www.irvingchamber.com/edc/economic-profile-demographics/
http://www.bizjournals.com/austin/news/2016/12/20/with-low-unemployment-and-relatively-affordable.html
http://www.inc.com/peter-economy/10-top-new-years-resolutions-for-success-and-happiness-in-2017.html
http://www.512tech.com/technology/which-tech-jobs-pay-the-most-austin/9ZmYz20mz9KxfAm8u2eemN/

 

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