Why Austin, Texas Is One of the Best Cities in America

Are you considering moving your business to Austin? Or are you thinking about investing in commercial property in Austin? You may be wondering what makes Austin a better choice than other cities. 

If you have lived in Austin long enough, chances are you have heard the question “why are companies choosing Austin?”

Austin Is One of the Best Places to Live in the U.S.

• Austin was named the Best State Capitol to Live In
• Austin was also ranked as the No. 1 fastest-growing metro area in the U.S.
• The Austin MSA is forecasted to reach a population of 3.6 million by 2040

Top 15 U.S. Cities by Population

^{Source: U.S. Census Bureau – 2020 Census}

Austin Is Youthful

• The median age of the Austin metro, 33.7 years, is more than five years younger than the national median age of 38.2 years
• A majority of the region’s population is in peak working years with 43% between the ages of 18 and 44, compared to 36% nationally

Austinites Are Educated

• Over half the population (53.4%) holds a bachelor’s degree or higher
• Austin was ranked in the Top 10 Most Educated Cities in America
• Austin was named the best city for grads to land entry-level jobs
• 90.3% of the population has a high school diploma

Educational Attainment

^{Source: U.S. Census Bureau, 2020}

Austin Is a College Town

• Austin was ranked the No. 1 Best College Town in America
• The University of Texas at Austin has roughly 51,000 students enrolled, making it the seventh largest university in the nation
• There are nearly 180,000 students enrolled in four-year and community colleges in the Austin MSA
• The student population within 200 miles of Austin exceeds 600,000, providing one of the world’s most robust talent pools

Austin has over 20 different colleges and universities in the area, including:

• The University of Texas at Austin
• Austin Community College
• St. Edward’s University
• Texas State University

Austin’s Job Market Is Robust

• Austin boasts 3.1% unemployment versus 3.5% nationally
• The number of jobs in the Austin area has risen 5.2% in the past year
• Austin holds the greatest density of high-growth companies and the highest rate of job creation
• Austin was ranked America’s Best Job Market

Top U.S. Boom Towns

^{Source: Forbes}

Austin’s Economy Is Diverse

• The Austin MSA is primarily dominated by professional and business services, government, and education and health services
• Austin’s GDP grew by 59.3% from 2010 to 2020 (St. Louis Fed Research)

Major Employers in Austin

^{Source: Texas Workforce Commission}

Breakdown of Industries in Austin MSA

Austin Is the State Capital of Texas

• The State of Texas and the U.S. Federal Government employ nearly 80,000 people in Austin; both rank in the top 10 largest employers in Austin

Austin Is the Best Tech City in the World

• Austin boasts the Highest Salary Growth for Tech Employees in the U.S.
• Jobs in Austin’s tech industries total over 184,177, or 16.7% of all jobs, compared to 9.2% nationally
• High-tech payrolls in 2021 totaled $27.6 billion, or 31.9% of the Austin metro’s total payroll

Largest Tech Companies in Austin

^{Source: Austin Chamber, 2022}

Austin Is a City of Science & Innovation

• Austin is home to roughly 300 life science companies
• The University of Texas at Austin, a Tier 1 Research University, is the driver  for innovation with over $680 million in annual research funding
• Austin was ranked third in Emerging Life Sciences Clusters and was ranked as the No. 2 best metro area for STEM professionals

Austin Loves Startups

• Austin was ranked No. 1 Best Place to Start a Business
• Austin was named the Most Affordable City for Startups
• Austin is home to about 1.2 M square feet of coworking space

The majority of the coworking space in Austin is attributable to WeWork, while the rest is attributable to the four other top coworking companies:

• WeWork: 7 locations with a total of 558,000 square feet
• Spaces: 2 locations with a total of 90,000 square feet
• Capital Factory: 2 locations with a total of 90,000 square feet
• Industrious: 3 locations with a total of 73,100 square feet
• Incubator CTX: 1 location with a total of 59,116 square feet

Austin’s Cost of Living

• Austin has a similar cost of Living to Detroit, Phoenix, and Philadelphia 
• Austin’s cost of living is significantly lower than other tech-focused cities
• There is no state income tax in Austin or Texas
• Austin’s median household income is approximately $75,752 versus a U.S. median of $64,994
• The mix of lower cost of living and higher median income means more money in your pocket

Austin’s Housing Market Is Hot

• Austin has seen 30% growth in housing units since 2010 (Esri)
• Austin was ranked as the No. 1 Hottest Housing Marking in the Country
• 44.52% of people own homes in Austin (Esri)
• 55.48% of people in Austin are renters (Esri)

Total Housing Units and Growth in Major U.S. Cities

^{Source: Esri}

Austin is a Tourism Magnet

• 17.3 million people traveled through ABIA in 2019
• A $350 million, nine-gate expansion at ABIA opened in 2019, with more growth on the way
• Austin hosts the SXSW Music, Film, & Interactive Fest

Austin City Limits Music Festival (ACL Fest)

• $369 million economic impact in 2021
• $2.6 billion economic impact since 2006

Austin is Central

• Austin’s central location means easy access to the east and west coasts
• Austin offers nearly 100 nonstop flights to locations in North America and Europe
• Austin is located in the Central Standard Time zone, giving plenty of overlap with working hours in other national and international cities

10 a.m. in Austin is:

• 8 a.m. in Los Angeles
• 11 a.m. in New York
• 4 p.m. in London
• 5 p.m. in Frankfurt

Distance from Austin

• Miami: 2.5 hours
• San Francisco: 3.5 hours
• San Jose: 3.5 hours
• New York: 3.5 hours
• London: 9 hours
• Frankfurt: 10 hours

Austin Is the Live Music Capital of the World

• Austin was ranked in the Top 10 Best Nightlife Scenes in the U.S.
• Austin City Limits, the music performance television show,  has aired since 1974
• Music legends including Willie Nelson, Janis Joplin, Stevie Ray Vaughan, and Townes Van Zandt hail from Austin
• Austin is home to over 250 live music venues
• ACL Music Fest began in 2002 on the greens of Zilker Park
• Austin was named America’s Greatest Music City and is known as The Live Music Captial of the World

Austin Is Active

• Austin’s Parks and Recreation Department maintains 300 parks, 18,714 acres of green space, and 227 miles of trails throughout the city
• Austin hosts annual races, including the Austin Marathon, the 3M Half Marathon, and the Cap10K

Some of Austin’s popular outdoor attractions include:

• Zilker Park
• Lady Bird Johnson Wildflower Center
• Barton Springs
• Congress Avenue Bridge (Austin Bats)
• Lady Bird Lake Hike & Bike Trail
• Mount Bonnell
• Mayfield Park & Laguna Gloria
• The Green Belt
• Bull Creek District Park
• Hamilton Pool
• Deep Eddy Pool

Austin Is Weird

• Coined by Red Wassenich (a librarian at Austin Community College), “Keep Austin Weird” became the unofficial slogan for the city
• Since the 1970s, Austin has become a magnet for creatives, innovators, and everything in between 
• Austin is authentically weird; from arts and visuals to music and food, no one does Texas like Austin

Still have questions about Austin? Reach out to our tenant representation team to learn more.