13
JANUARY 15, 2021
$1,385
864 sq. ft.
2.2%
$43,043
25 minutes
Average apartment rent
Average apartment size
Property tax rate
Per capita personal income
Avg. commute time
740 sq. ft.
1.2%
$68,883
34 minutes*
$3,111
*Many Silicon Valley workers do not live in the city of San Francisco because of high housing prices and cite hours-long commutes from other areas.
SOURCES: U.S. Census Bureau; Zillow; RentCafe; Greater Austin Chamber of Commerce; City and County of San Francisco Treasurer and Tax Collector; Austin Business Journal interviews
TALE OF THE TAPE A snapshot of some of the factors executives consider for relocation
and Dropbox CEO Drew Houston. With a massive influx of people, the pres- sure is on to keep Austin competitive and affordable — and to not repeat history by gar- nering high taxes and high costs of living like California. “With the number of people moving here, it’s going to create the demand for talent, resources — everything. Hopefully it will keep its soul and manage the growth,” Mervau said of Austin. Area chambers of commerce have prior- itized economic development tools for the upcoming legislative session to continue to bring companies here while also creating an environment that helps local businesses pros- per. That includes maintaining the state’s low taxes and continuing to focus on educational opportunities to keep the talent pool stocked. Laura Huffman, president and CEO of the Greater Austin Chamber of Commerce, said managing Austin’s growth will require both newcomers and longtime Austinites to be engaged in the community, adding it’s less about studying the fails of California andmore about charting a unique course for Austin. “The question is, will we grow with grace? It takes all hands on deck to make sure that you do that appropriately, and that you protect those things that are most important to those of us that are living here,” Huffman said. “The fact that people are still drawing a line from where they are today to Austin tells you that we get it right a lot of the time.”
CALIFORNIA
TEXAS
0%
Personal income tax rate
13.3% (top tax rate)
0%*
Corporate income tax rate
8.8%* 7.25% + varying local district taxes $3.1T
6.25% + up to 2% local sales and use tax
Sales tax rate
$1.8T
2019 GDP
Managing Austin’s growth “Austin will continue to find itself on the radar screen because of the overall positive state business climate,” Boyd said. “The intel- lectual capital and skill sets that are in Austin — you have some of the highest in-migration rates of tech talent around the globe.” As remote workforce trends prove them- selves and corporate cost savings becomemore of a priority than ever during the pandemic, this has only quickened the pace of compa- nies and CEOs leaving Silicon Valley, Boyd said. Take Oracle Corp.’s recent headquarters move to Austin as an example, plus personal moves to Texas by Tesla Inc. CEO Elon Musk
2020 estimated population
39M [-69,532 YoY change]
29M [+373,965]
Typical home value
$220,034
$609,757
$61,874
Median household income
$75,235
Nov. 2020 unemployment rate
8.1%
8.2%
*Both states have franchise taxes on businesses that are calculated differently and apply to various entities. California also has an alternative minimum tax of 6.65%.
SOURCES: California Franchise Tax Board; California Department of Tax and Fee Administration; Texas Comptroller; Federal Reserve Bank of St. Louis; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Austin Business Journal interviews
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