Companies Leaving California
Many large corporations are leaving California. According to a study by Stanford University’s Hoover Institution, California corporations are relocating their headquarters to Texas more than four times the rate of any other state.
From January 1, 2018, to June 30, 2021, the state of Texas gained 114 California headquarters. The second state with the next largest acquirement of California corporations was Tennessee with 25. The Economic Development and Tourism office in Texas stated there’s been a major increase in companies reaching out since the COVID-19 pandemic hit with more than 237 relocation or expansion projects.
It’s not only businesses that Texas is attracting—it’s also residents. In 2020, Texas added more residents than any other state. Among those who have moved to Texas include CEOs.
- Drew Houston-Dropbox CEO bought a house in Austin, which will become his permanent residence.
- Douglas Merritt-Splunk CEO recently bought a house in Austin, which he is planning on having as his permanent residence.
- Elon Musk-Telsa CEO moved from California to Texas to be near his Gigafactory in Austin.
Companies that Moved to Texas
- HP announced that it will move its headquarters from San Jose. They already had a substantial presence in Houston.
- Oracle announced it would be moving its headquarters from Redwood City to Austin.
- 8VC, a venture capital firm, is relocating from Silicon Valley to Texas.
- FileTrail, a records management software company, is relocating from San Jose to Texas.
- Previously, Amazon picked Houston for one of its treasured Tech Hubs. The company occupies 25,000 square feet in Citycenter with a team of more than 150 Amazon Web Services. Since 2010, the company has invested $10 billion into Texas. The company values Houston’s diversity, universities, and quality of life.
- Tesla is building its new Gigafactory in Austin.
- Apple will house its second-largest campus in Austin. Apple began developing its new Austin campus in 2019. It is a 133-acre campus that will begin with 5,000 employees and provide various jobs in engineering, research & development, operations, finance, sales, and customer support.
- DZS Inc.-The telecommunications equipment company announced its plans to move its headquarters from Oakland to Plano, Texas.
- Pabst Brewing Co., the country’s largest privately-owned beer brewer, moved its headquarters from Los Angeles to San Antonio.
Reasons for Texas Relocation
The following are the main reasons companies are leaving California for Texas:
- Unaffordable Housing Market
- High Tax Rates
- Strict Regulations