Milken Institute recently named Austin as the best-performing city among the 200 most populated US metropolitan areas. This is the first time since 2013 that Austin has gained the top position, moving up one place from the previous year. The ranking was determined by comparing factors such as labor market conditions, the impact of high-tech, and access to economic opportunities.
Highlights of Austin, Texas (world population review - estimated for 2024)
Size: 319.9 sq. mi.
Population: 984,655
Growth Rate: 6%
Growth Since 2020: 1.96%
County: Hays, and is the state capital of Texas
Average Household Income: $122,474
2024 Fortune 500 List of companies based in Austin (ranked by annual revenue)
50. Tesla
101. Oracle
Other large employers in Austin
Chuy’s Holdings - food service
Digital Realty Trust - real estate
Cirrus Logic - information technology
Thermon Group Holdings - industrial
Green Dot - financial
Yeti Holdings - outdoor manufacturer
USA Compression - energy
Aviat Networks - information technology
In 2020, Tesla started construction in the Austin area building what has become known as the world’s second largest factory, with a size of over 10 million square feet. This also saw a gain of an estimated 15,000 jobs to the Austin area. In addition, Tesla moved its headquarters from California to Austin in 2021 and is planning to expand even more.
Software company Oracle decided to relocate its headquarters from Silicon Valley to Austin in 2020. With their office space totalling over 1 million square feet, Oracle has also been considering the possibility of expanding more to include hotel, conference, and fitness facilities.
How the tech industry has grown in Austin
Austin has been consistently growing over the last decade and attracting several businesses, including developing an active tech hub that is known as Silicon Hills.
According to the Austin Technology Council, the boost in technology companies really started to accelerate due to the growth of Dell Technologies based in Austin. The growth of Dell over time attracted other companies to the area, including large corporations and over 5,000 startups. These startups had an estimated value of $128 billion in 2022, and the projected job growth for all technology companies is estimated to be 2.3% annually from 2024 to 2027.
How many people have relocated to the Austin area
According to Forbes Home, Austin welcomed 50,415 people in 2022 who moved to the area. In addition, 164 companies have relocated to Texas between January 2020 and October 2023, and 43 of those companies, the majority, moved to Austin. As of January 2024, the median price home sold in the Austin area was $477.3K. The average rent for a 710 sq. ft. apartment is averaging $1,438.
According to Austin city officials, it has been the fastest growing metro area for 12 years in a row and they are projecting the population could reach 1.1 million by 2030 and 1.6 million by 2060.
What job candidates consider when relocating to Austin
Plentiful job opportunities provide a big incentive for those considering relocation to the Austin area which has many companies planning long-term expansions. Many additional factors also make Austin an attractive city including:
Cost of Living: Overall, the costs are typically lower in Austin, then in other cities. For example, if you need a $70,000 salary to live in Portland, Oregon, you would only need $57,568 to live in Austin, Texas which is a 22% cost of living decrease.
Quality of Life - Austin has a reputation as a friendly city with nice Southern hospitality and neighborhood pride. Austin is also known as the live music capital of the world that features musical festivals and concerts each year.
Top Schools - According to Best Colleges U.S. News, the University of Texas at Austin is ranked ninth in top public schools and the computer science program is one of the most competitive. It was also named by Forbes as one of the best large employers in the U.S.
Recreation Choices - There are many outdoor activities in Austin including enjoying the various parks, trails, paddling, fishing, or swimming. There are also vibrant murals, museums and restaurants to explore as Austin is also known for its cuisine options.
State Tax: Texas is one of the states in the US that doesn’t charge individual income tax, They also don’t charge an inheritance tax which was eliminated in 2015. The current sales tax rate for Texas is 6.25% and property tax is not collected by the state, and is instead charged at the city or county level.