With some of the largest tech companies in the world like Apple, Google, and Facebook, Silicon Valley has been at the center of everything related to technology. For dozens of years, California has had a reputation for helping startups achieve success in Silicon Valley. However, Texas has been disrupting the primary technology destination in the country. Silicon Valley’s reign over the tech industry is close to an end. After Tesla and Hewlett Packard relocated their primary operations to Texas, Oracle was soon to follow. Suddenly, California is no longer the technological epicenter of the future. But this has everyone wondering: why Texas?
There are plenty of states competing to be the next Silicon Valley, but Texas is the only one with a chance of actually achieving it. Even before the big technology companies recently relocated, Texas had been primed to be the next technology hub for a while. The widely known Texas Instruments (TI) is the largest manufacturer of analog chips and has been growing despite Silicon Valley’s explosive progress. This is in part because of Rice University in Houston, an institution that’s been focused on technical advancement. Much like Rice University, Silicon Valley had Stanford feeding its technological innovators that helped shape the modern world. Unfortunately, Rice University students flocked to Silicon Valley, which made it the tech leader.
However, Texas had been pouring government funds into developing more sophisticated infrastructure like the Johnson Space Center. As the primary competitor to be the next Silicon Valley, Texas had to step its game up, which is exactly what it did. In 2014, Texas had more high-tech exports than California and continues to hold that lead today. While California leads in R&D, major tech companies relocating could turn the tables in one of the most impactful technology races to date.
Easier For You to Make Money
But what does this mean for someone who isn’t a large corporation or a tech billionaire? Texas is still one of the best places for ambitious workers. The Texas economy is bustling with activity and new jobs. There are plenty of high-paying job opportunities and they’re available to everyone even including those outside the tech industry. These opportunities come together to make Texas a target area for recent technology graduates and future leaders in the tech industry. Not only that, Texas income-earners pay extremely low-income taxes. Texas is one of only seven states that don’t impose income taxes. This incentive alone is enough for any money-seeker, but once you add the career opportunities, almost anyone would be interested in working for the Lone Star State.
Low Living Costs
One thing Silicon Valley is notorious for is its high cost of living. Even with a high tech-based income, taxes and living costs leave California residents paying an arm and a leg just to afford some decent housing. Luckily, Texas’s cost of living is very affordable. Decent housing costs just over a third of what it could cost in many areas of California. Not only that, utility expenses like gas and electricity come at a discount compared to California. While one of the most progressive states in the country, California’s high cost of living makes it undesirable to work in, even when paired with a higher salary. Living in California instead of Texas could cost you over $15,000 annually. This means that $15,000 of your disposable income would be spent on the same living expenses you could get in Texas at a fraction of the cost. With low taxes and low living costs, Texas is targeted by anyone who wants to keep the money they earn.
The Bottom Line
Whether you’re a “tech-head” yourself or you’re just interested in the evolving industry, you should keep your eye on Texas. While Silicon Valley is still more popular in name, Texas is on the rise and could quickly become the next main technology hub. While it may seem like Silicon Valley has been the center of tech for as long as anyone can remember, the primary technology state changes all the time. At the end of the day, the industry will follow opportunities created by both the government and employees. Texas’ leading technological institute and low-cost incentives for workers are attracting some of the best talents in the country.