Another year, another round of businesses fleeing California—despite Governor Gavin Newsom’s endless optimism that the Golden State is the “beating heart of the American economy.” The only thing California’s heart seems to be beating for is the sound of companies packing up and heading to Texas.
Since 2018, over 360 companies have left the state, with the bulk of them heading straight to Texas. By 2023, over half of those relocations ended up in the Lone Star State. And why wouldn’t they? Texas offers lower taxes, a business-friendly government, and the promise of a thriving economy. Meanwhile, California’s sky-high taxes, insane housing market, and regulatory nightmare are driving out not just companies but entire populations.
Take Simplilearn, for example. The global tech company left San Francisco for Plano, Texas, citing the “dynamic tech community” and access to a diverse talent pool—another win for Texas. Resources Connection, a management consulting firm, ditched Irvine after 30 years to plant roots in Dallas. Even medical device company Koya Medical packed up from Oakland to Dallas, promising over 200 new jobs in the process.
Let’s not forget ABBYY, a data analytics company that skipped town and moved its headquarters from Silicon Valley to Austin. In a statement, the company’s CEO praised Austin as “the heart of a growing tech ecosystem.”
But it’s not just tech. FreshRealm, a meal kit company, made the leap to Lancaster, Texas, to build an 88,000-square-foot operation. And Graze Inc., the robotic lawnmower company, is now calling Plano home.
As if things weren’t bad enough, California’s housing crisis just keeps getting worse. Now, even the insurance companies are ditching the state. State Farm and Allstate are pulling out faster than a teenager caught sneaking out, leaving homeowners to scramble like they’re in a bad game of musical chairs. Meanwhile, Texas is busy gaining residents—especially Californians—who are fleeing high taxes and unaffordable living.
It’s clear: California’s loss is Texas’ gain. With no personal income tax and an economy that’s expanding, Texas is outpacing California in job creation and economic growth. If California keeps up this trend, it might just need to change its name to “Exodus State.”
