Texas Ranks as the Next Boom Town
A boom town, by definition, is where demographics, the economy, and immigration and migration patterns are continually in flux. Texas, as whole, has been ranked the land of opportunity and has mushroomed from a relatively homely state into one flourishing with innovation.
To elaborate, a recent Forbes analysis has ranked Texas as harbouring America’s next boom towns. Forbes analyzed the 53 largest metro areas in the country to determine which have the best chance of prospering in the next decade . These areas were ranked based on eight metrics indicative of past, present and future vitality. Forbes factored in, equally, the percentage of children in the population, the birth rate, net domestic migration, the percentage of the population aged 25-44 with a bachelor’s degree, income growth, the unemployment rate, and population growth.
In short, the results show two opposing kinds of principal cities. One is driven by the tech industry, the in-migration of educated people and sharply rising incomes; the other type is described as “opportunity cities,” which lean towards having a diverse range of industries, lower costs and larger numbers of families. Whilst America may be one country, the future is being moulded by two very diverse urban prototypes.
In particular, Austin – dotted with quirky hotspots ranging from a Cathedral of Junk to the world’s largest urban bat colony – ranked as number one in the ‘opportunity city’ category. Surges in population, job growth, and education levels contribute to the boomtown status. As per the Forbes report, Austin experienced a 13.2 percent population increase from 2010 to 2014, and 43 percent of the current population ages 25 to 44 have at least a bachelor’s degree. Additionally, the local job count has grown by 19.1 percent in the past five years.
However, it wasn’t just Austin who topped the charts. Three other cities of Texas’ major metro areas made Forbe’s top 10. Houston, Dallas-Ft. Worth and San Antonio joined Austin in achieving double-digit job growth from 2010 through 2014, well above the national average of 8.1%. They also all have posted income growth well above the national average. Indeed, as Forbes puts it, “the most vital parts of urban America can be encapsulated largely in one five-letter word: Texas.”
Certainly, as this article reveals, the Lone Star State propositions a business-friendly environment. With a thriving professional network that is growing, the innovation ecosystem in Texas is flourishing. Moreover, the R&D tax credit can help fuel the ‘boom’ in Texas by putting cash back into innovative companies who have invested in research and development. Several states, including Texas, offer businesses their own version of the R&D tax credit. Individuals should take advantage of any R&D tax credits available at the state and federal levels as they can claim the credits concurrently. Contact us today to talk to a specialized R&D Tax professional who will be able to answer any questions you may have.