Thousands of Americans have ditched major metropolitan areas during the pandemic, including New York and San Francisco, for more affordable states such as Texas – where Tesla CEO Elon Musk and other Silicon Valley big wigs have recently relocated.
The COVID-19 outbreak is fueling what some experts are calling a mass exodus of people from some of the largest tech and financial hubs in the country, with workers now setting their sights set on areas with lower taxes and less government regulation.
Musk, 49, last week announced he had moved to the Lone Star State, months after criticizing California state officials over their strict coronavirus restrictions.
He was soon joined by tech giant Oracle Corp, which on Friday said it was moving its headquarters from Silicon Valley to Austin, and will let employees choose their office locations and decide whether to work from home.
Austin was ranked number one of ten cities where the most people have moved between April and October 2020
Meanwhile, Hartford, the capital of Connecticut, saw the largest outflow of people during that time frame
But new data has revealed it’s not only the rich who are taking part in the migration to smaller and cheaper regions, but average working Americans as well.
A recent report by LinkedIn analyzed the areas that have seen an influx of newcomers, as well as those regions that have lost the most residents, between April and October 2020.
Austin was ranked number one in a list of ten cities – the majority of which are located in the south – where the most people have moved during that time period.
For every one person that moved out of the Texas state capital, 1.53 people moved in, according to the data.
Phoenix took the second place spot for the most popular destination, followed by Nashville, Tampa, Jacksonville, Charlotte, Dallas, Denver, Charleston and Seattle.
Meanwhile, Hartford, the capital of Connecticut, saw the largest outflow of people during that time frame.
New York City and the San Francisco Bay Area – large, bustling urban areas that are home to booming tech and financial companies, were ranked second and third, respectively.
Billionaire Tesla founder Elon Musk, 49, last week announced he had moved to the Lone Star State, months after criticizing California state officials over their strict coronavirus restrictions
Fellow tech giant Oracle Corp on Friday said it was moving its headquarters from Silicon Valley to Austin, and will let employees choose their office locations and decide whether to work from home
TOP 10 CITIES THAT GAINED THE MOST NEWCOMERS
1. Austin, TX
2. Phoenix, AZ
3. Nashville, TN
4. Tampa, FL
5. Jacksonville, FL
6. Charlotte, NC
7. Dallas, TX
8. Denver, CO
9. Charleston, SC
10. Seattle, WA
TOP 10 CITIES THAT LOST THE MOST RESIDENTS
1. Hartford, CT
2. New York City, NY
3. San Francisco Bay Area, CA
4. Chicago, IL
5. Cleveland, OH
6. Norfolk, VA
7. Boston, MA
8. Detroit, MI
9. Cincinnati, OH
10. Pittsburgh, PA
According to data from the Council for Community and Economic Research, cost of living played a major factor in where people decided to move, Bloomberg reported
It showed a trend of people leaving expensive, urban cities – most of which are located in Democratic states – and flocking to smaller towns in the south.
Billionaire Elon Musk’s move to Austin follows podcast host Joe Rogan, who in August revealed he would be moving to the Texas state capital to ‘have a little bit more freedom.’
Their relocation means they have joined the 687,000 Californians who have relocated to Texas in the last ten years.
US Census Bureau data from 2010 to 2019 showed Californian transplants made up about 13 per cent of the entire population that has move to the state since the beginning of the decade.
During his announcement, Musk justified the move by saying he needed to be closer to two of his biggest projects: the development of rockets by his company SpaceX in the southern part of the state, and construction of a Tesla automobile plant near Austin.
Billionaire Elon Musk’s move to Austin follows podcast host Joe Rogan (pictured) who in August revealed he would be moving to the Texas state capital to ‘have a little bit more freedom’
Texas has long targeted companies in high-cost California for relocation.
The state is one of the few in the country that offers a lower cost of living and no state income tax, both of which may appeal to businesses as well as working millennials.
Texas Governor Greg Abbott last week took to Twitter to boast about Oracle’s decision.
‘Oracle just announced they have moved their headquarters to Austin,’ Abbott tweeted on Friday.
‘Texas is truly the land of business, jobs, and opportunity. We will continue to attract the very best,’ he added.
Hewlett Packard Enterprise has said it is moving its global headquarters from California to Texas. The company is building a 440,000-square-foot campus in two five-story buildings, architect’s drawing pictured. It is set for completion in 2022
The migration to Texas also comes as tech firms that have been letting workers do their jobs remotely due to the pandemic embrace the practice, which allows them to hire people who live far from offices and leaves companies less tethered to Silicon Valley campuses.
‘We believe these moves best position Oracle for growth and provide our personnel with more flexibility about where and how they work,’ the company said in a regulatory filing.
It also said it would keep major hubs at its current home in Redwood City, California, and other locations.
In its most recent fiscal year, which ended May 31, Oracle reported earnings of $10.1 billion on revenue of about $39 billion. The company was founded in Santa Clara, California, in 1977 and as of May 31, employed about 135,000 people.
Hewlett Packard Enterprise, one of the early companies in Silicon Valley, earlier this month said it will move to the Houston area and build a campus with two five-story buildings by 2022.
In 2018, Toyota shifted its US headquarters from Southern California, to Plano, Texas, a Dallas suburb.