Financial Firms Moved Out of New York and California: New Uprising in Texas and Florida
Source：Dallas
From：Dallas
Update Time：2023/10/07
According to U.S. media report, there is now data showing that New York and California have each lost nearly $1 trillion in assets due to the migration of financial companies since the end of 2019. This exodus has resulted in the loss of high-paying jobs and has put financial strain on states and cities, while also impacting the commercial property market. However, Texas and Florida have become top choices for financial companies due to low taxes, affordable rents, and favorable weather conditions, leading to significant job creation and economic growth.
While New York and California still maintain their leading positions in the financial industry, an increasing number of companies are choosing to relocate their headquarters to the South, with Texas and Florida each receiving over half of these relocations. According to data from 2020 to 2023, 158 companies moved their headquarters out of New York, with 104 of them choosing Florida as their destination. California-based companies, on the other hand, favor Texas, where the finance industry in Dallas is rapidly expanding, experiencing its fastest growth since the 1980s oil burst. Both Goldman Sachs Group Inc. and Wells Fargo & Co. have invested up to $500 million to build new office campuses in Dallas. This growth has created job opportunities and economic expansion, but has also stimulated the commercial real estate market, leading to a 30% increase in property tax revenue in Texas.
The migration of financial companies from New York and California has resulted in significant losses of assets and job opportunities for these states. Over 370 financial companies have shifted their headquarters to different states, accounting for approximately 2.5% of the total in the U.S. These companies collectively manage assets worth $2.7 trillion. The Southern states, such as, North Carolina and Tennessee, have attracted over $600 billion in asse between 2020-2023. The move of financial companies has generated new opportunities, bringing job opportunities and economic growth to new regions. This trend is likely to continue and bring further changes in the future.