HOUSTON — It's not your imagination. Businesses are moving to Texas, and a lot of them are coming from California.
According to the Hoover Institution, a conservative think tank at Stanford University, 114 companies relocated their headquarters from California to Texas between January 2018 and June 2021. The next closest state picking up Golden State transplants was Tennessee, but it only gained 25.
Less regulation, lower costs
The companies coming to Texas are some big names, too. We are talking Oracle, Hewlett-Packard, and of course, Tesla.
So why are they coming?
According to the conservative think tank, it's a combination of high regulations and taxes in California and a more business friendly environment along with a lower cost of living in Texas.
But that could be changing.
Raising prices, real estate market
Austin is on track to become the least affordable major city outside of California by years end, that's according to Zillow. And Houston and Dallas are seeing market shifts as well. Texas Monthly reports in Houston buyers from abroad like the United Arab Emirates and China are picking up high-end properties. While that is a sign that real estate in the area is seen as a good investment, it also indicates costs are not coming down anytime soon.