DALLAS (KDAF) — When it comes to the state of Texas it’s known for many things, football food, and much more; but according to a survey by Claremont McKenna College’s Rose Institute and Kosmont Companies, it’s one of the least costly states to do business in.
The main finding of the survey was that most businesses are leaving California for lower-cost states in the western United States as Cali’s cost of doing business is higher than in other states in the region. The survey found that 64% of businesses have left California in the past 30 years for Nevada, Arizona, Texas, and Oregon.
“Doing business in Southern California has many benefits, but the costs make it increasingly hard to pull off,” said Ken Miller, director of the Rose Institute of State and Local Government and an author of the survey report. “Rising home values, office rents, labor costs, and burdensome new state and local laws were variables to watch this year as these costs continue to escalate.”
Austin, TX is one of the top destinations for California businesses to relocate to as it saw 816 arrive from 1990 to 2019. The survey also found that three large Texas cities and commercial hubs Fort Worth, Irving, and San Antonio are among the least expensive cities to do business in.
“Some small California cities found a spot on the list of least expensive cities for doing business, including Inland Empire cities such as Yucaipa, Yucca Valley, and Hesperia. However, cities in Arizona, Idaho, New Mexico, Nevada, Oregon, and Texas comprised most of the list of least costly cities.”
Be sure to check out the full survey report, the most and least expensive cities for business and full rankings of the 158 cities can be found at roseinstitute.org/costofdoingbusiness.