Texas emerges as US' new economic powerhouse amid California exodus

Texas has emerged as the leading destination for corporate headquarters relocations in the United States, attracting 192 companies since 2018, as businesses continue to move out of California citing high taxes, regulatory burdens and rising operating costs, according to a new study.

The report 'Why Texas? - The Corporate Exodus Continues', released by real estate services firm Partners Real Estate in May, said the migration of companies has accelerated a major shift in the country's economic landscape, with Texas consolidating its position as a preferred hub for business investment.

The figures reveal that Texas has secured 192 corporate headquarters relocations since 2018, with the massive expansion heavily concentrated in the Dallas-Fort Worth, Austin, and Houston areas.


Conversely, California suffered the nation's steepest corporate exodus, with more than 135 major headquarters abandoning the state for Texas alone, alongside a broader wave of departures from the San Francisco Bay Area.

Corporate executives cite California's high state taxes, rigid labour regulations, and soaring business costs as key reasons for relocating operations, the report said.

This wave of departures features several of the world's most recognisable market leaders, highlighting deep sector transformations across the state, it said.

Technology firms Oracle Corporation and Tesla, Inc moved their headquarters to Austin, while social media platform X Corp also established its headquarters in Bastrop.

Simultaneously, major logistical, real estate, and healthcare anchors pivoted to the Dallas-Fort Worth metroplex. This regional surge is driven by high-profile corporate real estate transitions from commercial real estate leader CBRE Group, engineering giant AECOM, and pharmaceutical distributor McKesson, alongside Public Storage's significant move to Frisco.

Houston has also benefited from the trend, with Hewlett-Packard (HP) Enterprise establishing a major campus in the region and energy major Chevron Corporation relocating its headquarters from California to the city.

Local officials said the influx of companies has boosted economic activity, employment and infrastructure development across Texas.

Faced with a shrinking corporate tax base, California lawmakers are grappling with the fiscal fallout of losing major economic anchors, while Texas officials continue to aggressively market the state's low-tax environment to international and domestic firms alike.