the trend that company move to Texas
Member since 2019 · 7k+ posts · 4k+ votes
so based on these recent huge tech layoffs in CA, there's structural job changes that due to Fed Interest Rate, tech company can not longer operating in sustainable fashion in CA, so they have to move operation. Either to Texas, to India to Arizona or to Florida. So even company is moving out. This would obviously trigger more out-migration. One biggest S&P company is saying to their employee, either you move to Texas or we give you severance package !
I think the trend is pretty clear for next decade. There is more growth in TX,AZ,OH,WI,FL/India most likely. This is the trend that's very apparent. Texas is good in particular because cost of doing business is "moderate" with ample size of headcount available in the market and practically has no housing issue. What do you see in Texas ?
@Carlos Ptriawan Many areas in Texas have seen unreasonable property tax increases over the past few years. My sister owns 17 SFH that she bought in Denton TX more than a decade ago and refinanced to low interest rates during the pandemic. Most of them have less than $130,000 left on their mortgage but have appreciated to around $350,000. Their property taxes have gone up by approximately 60% each year for the past 3 years and 40% for several years before that. She barely breaks even now on these properties that were once her retirement plan and if she has any unexpected expenses forget it, those all come out of her pocket.
All of the tax dollars are going to widen roads to support more people moving to the area and to build more schools to accommodate the influx of kids. There are no benefits to the property owners that aren’t using these things.
She wanted a new investment in Texas and showed me a 6 unit apartment building that was $1.4M and after expenses LOST $3875/month. I told her to forget ever buying a property that lost money unless maybe it was waterfront and to let me find something. We bought a 5 unit property for $340K that cash flows$2000/month. What a difference!
Texas is taking the lion share of tech, Florida took the lion share of financials.
Amazon currently has about 95,000 staff in Texas. Not sure how that is distributed. Florida about 59,000, so there is some catching up to do. Of course you could have all the $120,000/year coders while we have the $20,000/year warehouse workers. While Bezos parks the yacht in South Florida I imagine, he also has a huge ranch in Texas where he is from and parks the rockets there.
Everyone a few years ago was excited about HDQ2, but I guess they thought Brooklyn was hipper because everyone talks faster and no one shows up in boots and Stetsons. Not sure where those 25,000 jobs went? Maybe distributed around to various offices already in place.
We've seen massive move in GS, Schwab, Fidelity, TD Ameritrade, Liberty Mutual, State Farm, WF, and BoA, also Fisher Investments looks like they're moving here. Lots of PE and family offices, but no idea how that compares to South Florida. We probably got all the call takers and tellers, you probably got all the analysts.
This is solid research and convincing !!
What really happened is TX becoming new center attracting mid level employee for service industry , it is kinda choice of in-shore choice where company needs to expand with budget in mind. They can’t keep continue off shoring the job to other country …. Seems only TX and FL is ready to reap the benefit.
best market for middle level company/business service expansion: Texas
best market for high growth tech/research company: California
best market for financial sector: New York/Florida/Chicago-land.
best market for appreciation for investor : California/Hawaii/Colorado/Florida
best market for real estate cash flow/mild appreciation for investor : Wisconsin/Ohio/Indiana/Iowa/Alabama/Midwest
best job growth for owner occupant: Texas/Florida
best weather: Hawaii/Mexico LOL :)
California unsustainable for business. Go figure with their current political leadership.
I think the demand for software engineers is pretty much infinite. The demand at Bay Area prices is not. We’ll probably see some of those 300k/yr engineers move to 150k/yr jobs but they will be fine. I would have done software going back. They are the highest margin business out there which is what supports wages which are out of this world compared to other Stem types.
I think the demand for software engineers is pretty much infinite. The demand at Bay Area prices is not. We’ll probably see some of those 300k/yr engineers move to 150k/yr jobs but they will be fine. I would have done software going back. They are the highest margin business out there which is what supports wages which are out of this world compared to other Stem types.
Correct , it is going to commoditize in near future due to wage pressure and AI.
hence Texas
California unsustainable for business. Go figure with their current political leadership.
That’s exactly what happen here
I think the demand for software engineers is pretty much infinite. The demand at Bay Area prices is not. We’ll probably see some of those 300k/yr engineers move to 150k/yr jobs but they will be fine. I would have done software going back. They are the highest margin business out there which is what supports wages which are out of this world compared to other Stem types.
That is much of what you are seeing according to my tech friends.. Either old technology getting gutted and replaced (Amazon Alexa just adopting Chatgpt4) or companies laying off and rehiring at a lower rate. People making $210k seeing their job reposted at $140k with no shortage of applicants.
Those that did relocate to Austin have been deeply disappointed by the tech talent and high prices. They paid cash for a $1M house and are still paying nearly $3k a month in property tax and insurance. Several have returned.
I think the demand for software engineers is pretty much infinite. The demand at Bay Area prices is not. We’ll probably see some of those 300k/yr engineers move to 150k/yr jobs but they will be fine. I would have done software going back. They are the highest margin business out there which is what supports wages which are out of this world compared to other Stem types.
That is much of what you are seeing according to my tech friends.. Either old technology getting gutted and replaced (Amazon Alexa just adopting Chatgpt4) or companies laying off and rehiring at a lower rate. People making $210k seeing their job reposted at $140k with no shortage of applicants.
@Carlos Ptriawan Thanks for sharing and if I might address this then, Just so you’d know companies people and small businesses tends to follow trends and that’s significantly how they keep up with demands…. Firsthand Texas has emerge as a prime destination over the years for companies looking to relocate, thanks to its attractive tax police’s, affordable living and working costs, also we should not forget the growing tech pool. So it’s safe to say there’s a cow and now everyone else wants to milk it. The idea of turning Texas to CA or NJ and NY I don’t see that happening because Texas on its own has every bit of those in it waiting to be tapped into. The state’s diverse economy, driven by diverse, high-end paying industries is gaining ground, and also it offers a fertile ground for businesses, communities, individuals and companies to thrive and grow.
@Carlos Ptriawan Thanks for sharing and if I might address this then, Just so you’d know companies people and small businesses tends to follow trends and that’s significantly how they keep up with demands…. Firsthand Texas has emerge as a prime destination over the years for companies looking to relocate, thanks to its attractive tax police’s, affordable living and working costs, also we should not forget the growing tech pool. So it’s safe to say there’s a cow and now everyone else wants to milk it. The idea of turning Texas to CA or NJ and NY I don’t see that happening because Texas on its own has every bit of those in it waiting to be tapped into. The state’s diverse economy, driven by diverse, high-end paying industries is gaining ground, and also it offers a fertile ground for businesses, communities, individuals and companies to thrive and grow.
Texas economy is super diverse and its very welcoming for businesses with many tax benefits and ease of doing business. There are multiple industries that drive the state's economy such as Tech, Oil and Gas, Aerospace, Medical and Biomedical, Agriculture, Military, Manufacturing, etc. The days of labeling Texas as a one industry economy went out during the 1970-1980's painful economic oil industry collapse. The diversification has allowed Texans to not only survive but thrive. We need folks to come here to fill the jobs from this economic job creating juggernaut. But to be very real, we are a victim of our own success and the immigrant crisis on the southern border is an example.
....The idea of turning Texas to CA or NJ and NY I don’t see that happening.......
....The idea of turning Texas to CA or NJ and NY I don’t see that happening.......
I'd look for untapped markets in Texas that are prime for growth. Amarillo for example?
....The idea of turning Texas to CA or NJ and NY I don’t see that happening.......
Texas will be the strongest of the strong. Austin, San Antonio, Dallas, Texas, Houston and more!
I'd look for untapped markets in Texas that are prime for growth. Amarillo for example?
I agree! all of Texas is growing. Might as well look for cities where major growth hasn't occurred yet.
@Carlos Ptriawan Thanks for sharing and if I might address this then, Just so you’d know companies people and small businesses tends to follow trends and that’s significantly how they keep up with demands…. Firsthand Texas has emerge as a prime destination over the years for companies looking to relocate, thanks to its attractive tax police’s, affordable living and working costs, also we should not forget the growing tech pool. So it’s safe to say there’s a cow and now everyone else wants to milk it. The idea of turning Texas to CA or NJ and NY I don’t see that happening because Texas on its own has every bit of those in it waiting to be tapped into. The state’s diverse economy, driven by diverse, high-end paying industries is gaining ground, and also it offers a fertile ground for businesses, communities, individuals and companies to thrive and grow.
Texas economy is super diverse and its very welcoming for businesses with many tax benefits and ease of doing business. There are multiple industries that drive the state's economy such as Tech, Oil and Gas, Aerospace, Medical and Biomedical, Agriculture, Military, Manufacturing, etc. The days of labeling Texas as a one industry economy went out during the 1970-1980's painful economic oil industry collapse. The diversification has allowed Texans to not only survive but thrive. We need folks to come here to fill the jobs from this economic job creating juggernaut. But to be very real, we are a victim of our own success and the immigrant crisis on the southern border is an example.
....The idea of turning Texas to CA or NJ and NY I don’t see that happening.......
Texas will be the strongest of the strong. Austin, San Antonio, Dallas, Texas, Houston and more!
Word buddy!!!