Why Are Companies Moving to Texas and Florida?

As the pandemic era has ushered in a new era of remote work, companies and their employees have been reevaluating their locations and the lifestyle that comes with them. This has led to a surge in businesses relocating to Texas and Florida, two states that are characterized by relatively low real estate costs, low electricity prices, no state income taxes, and a favorable environment for general business. Tesla, Oracle, Hewlett Packard, Dell, Texas Instruments, Rackspace Hosting, AT&T, and SpaceX founder and CEO Elon Musk are just some of the big names that have moved to Texas. Musk is the latest high-profile tech figure to announce his move to the state, though it's unclear where he'll settle.

Meanwhile, Future Tech Enterprise, an IT service provider, moved its headquarters from New York to Fort Lauderdale. At & Bradstreet, the New Jersey-based business data and analytics provider, moved its 500-employee global headquarters to Jacksonville. Unacast reports that 41% of businesses that relocated to Palm Beach County were from the New York City area. Other newcomers range from high-tech companies to those dedicated to transportation and consumer products.

Several unidentified companies are close to announcing their presence in the county, including a toy manufacturer, a retailer of boat and fishing supplies, and a Boston sales coaching firm. The decision by many companies to keep all their employees working from home even when it's safe to return to work or opting for hybrid models that may require their teams to only visit the office once in a while has also contributed to the trend of businesses moving away from expensive rental rates in Manhattan and Silicon Valley. Texas and Florida have become top attractions for businesses looking for an affordable place for their employees to live. With no state income taxes and a favorable environment for general business, these two states have become increasingly attractive destinations for companies looking for a change of scenery.