Historically, Austin has always been an attractive city for business. According to the Draper Hero Institute, a research firm led by Silicon Valley venture capitalist Tim Draper, Texas is ranked as one of the top three states for starting a company.
Pre-pandemic, Austin had a steady job opening growth rate of an average of 4% per year. Unlike most cities in the US, Austin saw a large spike in new business growth right after the pandemic hit that only continues to grow today. In fact, Q1 of 2022 was the biggest quarter for venture deals in Austin, totaling 99 deals with 1.5 billion in funding.
But startups and new businesses are not the only ones that are making Austin their home. Within the past two years, we’ve seen thousands of employees and employers abruptly leave their current cities and move to their new home – Austin, Texas
Austin Is Nicknamed Silicon Hills
A majority of the businesses that migrated to Austin were large tech companies, like Meta and Tesla, who were originally headquartered in the Silicon Valley. The wave of tech companies moving out of Silicon Valley caused a drop in tech job openings California and created a large influx of tech job openings in Austin, now nicknamed Silicon Hills.
Why Are Businesses Moving To Austin?
There are a few different reasons as to why tech companies are making Austin their new home.
- Cost of Living: The cost to live in the Silicon Valley is the top reason as to why people are migrating to the south. In Austin, the cost of living is 39% lower than it is in San Jose.
- Tight tech job market: Right now, it is almost impossible to find quality tech candidates in California. Because the demand for tech candidates is so high, employees are demanding higher salary and benefits that not all businesses can fulfill.
- Incoming tech candidates: Unlike Silicon Valley, Austin is surrounded by prestigious universities that have been producing quality tech talent. The pool of quality tech candidates is significantly larger in Austin, making it easier for businesses to source and recruit the right candidates
- Laws and regulations: With California’s new privacy laws, tech companies feel that they are being target and restricted on how they can operate their business.
As time goes on, Austin’s tech hub is only going to continue to flourish. At recruitAbility, we’ve helped several tech firms that are migrating to Austin find the right talent for their business. If your business is looking for a quality tech professional in the Austin area, please reach out to us at email@example.com.