The combination of high regulations and taxes in California and a more business-friendly environment along with a lower cost of living in Texas are the main reasons why companies are moving from California to Texas. According to a conservative think tank, these factors have been driving the trend of businesses relocating from the Golden State to the Lone Star State. In addition, some have publicly complained about poor city and state administration in California. The restrictions implemented by the state related to Covid-19 have been particularly criticized by tech entrepreneurs, such as Elon Musk.
On the other hand, Florida and Texas have implemented less stringent restrictions, making them more attractive for businesses. As of November, 39 technology companies and other industries had moved to Austin this year, according to data from the Austin Chamber of Commerce. Real estate brokerage firm Fortune 500 CBRE also moved its headquarters from Los Angeles to Dallas.