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Austin

Welcome to Austin!

400 years ago, refugees fleeing their home country’s hostile political environment bravely headed west over the Atlantic ocean in search of a better life. They arrived on a rock, unprepared for the challenges that come with moving to a new land: a shortage of food and inadequate shelter. A group of Americans called the Wampanoag took pity on these pilgrim refugees, shared their soil and helped them gain a foothold on it. In an act of goodwill and diplomacy, the grateful immigrants hosted the Americans for a large shared feast. Their meal has since become celebrated in the quintessential American tradition, Thanksgiving.

Migration, the core theme of this story, is one of the great forces of history. Not only internationally, but internally within the states. Texas itself has been a migration magnet throughout its history, which helps explain the record of growth that now makes it the second most populous state in America following California. According to the U.S. Census Bureau’s annual Population Estimates program, regionally, the Austin MSA (Metropolitan Statistical Area) has shown a growth rate with consideration of births and deaths of over 55,000 people annually over the last decade – that’s over 150 people per day! Consequently, with so many people moving in large numbers, there is inevitable impact and influence on the current flavor of our local culture. How will all these new flavors meld into our sweet Central Texas? Let’s take a look at where and why migrants are joining our Thanksgiving table in Texas.

Population Growth Texas 2016-2017
Data Estimates by the U.S. Census Bureau

Growth in Texas
Texas in general is growing at a rate of 1,000 people per day, and roughly half of these new Texans are migrants, according to State Demographer Lloyd Potter. The other half are newborns, Potter added. The strong U.S. economy and low unemployment rates have caused net domestic migration to Texas from other states to slow since 2015. Instead, in 2018, the majority of migrants to Texas — 104,976 people — came from other countries. While historically, Latin countries have accounted for the majority of those migrating to Texas, recently, Texas has seen an increase in migration from Asian countries, particularly China and India, with those countries accounting for around 45% of international migration to Texas in 2016. “Over the 2000s, we saw a pretty significant opening of China and kind of increasing number of Indian students coming over to study”, Potter said, “and I think what happens frequently is once they finish studying, they are able to get sponsored by a company for a work visa… once they get a green card, then they can start sponsoring their family to come over as well.” With Central Texas hosting a university culture that welcomes a large international student population, it’s not surprising that Austin ends up drawing a chunk of this international student demographic within that Texan growth.

Population Growth Austin 2016-2017
Data Estimates by the U.S. Census Bureau

Growth in Austin
Despite the increasingly international migration numbers for Texas, net migration to Austin remains primarily domestic. This also differs from other comparatively fast growing cities such as Miami, San Jose, New York, Boston, San Francisco, and Washington, D.C., which experience mostly international migration.

  • The greatest source of growth in Austin outside of local births is migration from other parts of Texas, followed by California, Florida, New York, and Colorado.
  • The most significant metro areas making a net positive contribution to annual migration to Austin are Houston, Dallas, San Antonio, New York, and Los Angeles.

A large part of what’s behind this growth trend can be found in the city’s employment opportunity, prosperity, and its evolution into a tech hub. While Central Texas provides massive employment opportunities in the service industry and in government, in 2018, the Austin Chamber of Commerce recorded 46 tech company relocations to the Austin area (these numbers do not include companies opening second offices as expansions locally like Apple, Amazon, and Google). Those 46 relocations translated into 9,424 new jobs in the city last year. That compares to 51 relocations in 2017 leading to 3,050 jobs. The incoming companies have justified the move due to the region’s lower cost of doing business and a growing pool of tech talent, who in turn are drawn to Austin’s flouishing job market and attractive cost of living.

So what does this kind of migration without RSVP mean for the Austin area? Have we run out of room at the table? A common fear is overcrowding and changes to Austin’s beloved physical and cultural landscape. What it really boils down to is increased population diversity brings with it new ideas, business opportunity, and varied cultures. This has the potential to beautifully blend into our “you be you” or “keep it weird” city, making it thrive. Without question, with this growing population will come the usual suspects – a surplus of traffic and an increased need for affordable housing. But let’s pull up some extra chairs to our table since the diversity of incoming minds will be an invaluable resource in addressing these twists and turns that come on the road to growth. In closing, it’s important to remember the positive lessons embedded in the American Thanksgiving story – our country was founded and fostered by a combination of native and migrant people. We will continue to grow gracefully as long as we embrace our diversity, and work together to build an Austin that we’re proud to call our home.

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SOURCES:

“Where is Texas’ growing population coming from?” By Maria Mendez, 5/8/2019 | Texas Tribune | www.texastribune.org/2019/05/08/texas-keeps-growing-where-are-newest-transplants-coming/

Yep. A Lot More People Have Moved To Austin, The Census Bureau Confirms, By Andrew Weber, 4/18/2019 | KUT Online | www.kut.org/post/yep-lot-more-people-have-moved-austin-census-bureau-confirms

Austin Migration Insights, By Chris Ramser, 2/21/2019 | Austin Chamber of Commerce | www.austinchamber.com/blog/02-21-2019-austin-migration

Chamber Report on High Tech

This week, the Austin Chamber of Commerce published a report on the High Tech Industry: https://www.austinchamber.com/blog/06-05-2018-high-tech-industry

• Nearly 6,500 employers in the Austin metro area are in high tech industries.
• Jobs in Austin’s tech industries total over 138,500, or 14.1% of all jobs, compared to 7.0% nationally.
• In 2017, jobs in Austin’s high tech industries grew by 4.3%, surpassing the metro’s 3.2% total job growth.

Annual average employment in high tech industries in the Austin MSA in 2017 was 138,544, up 4.3% from 2016. That’s a stronger gain than the 3.2% increase for employment across all industries. High tech jobs represent 14.1% of all Austin area jobs in 2017 and 18.5% of the year’s net new jobs. Nationally, high tech accounts for 7.0% of all jobs.

This is important to Austin and to the Real Estate community overall because of the quality of the these jobs.  For all industries, the average annual salary in Austin is $59,742, up 4.3% from 2016, while the average salary for high tech jobs is $112,771, up 6.2%.

Average Annual Salary Austin MSA

Average Annual Salary Austin MSA

High Tech Jobs Austin MSA

High Tech Jobs Austin MSA

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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