Watch out Silicon Valley! Austin is not only a much more affordable and fun city to live, but is now #1 US City for startups according to the 2015 Kauffman Index. Having grown up in the heart of the Silicon Valley in the height of the tech boom, I have seen many of the same conditions here in Austin over the past 5 years. And, the similarities don’t stop at startups. Recently, Austin was also named the #1 city predicted to be the next Silicon Valley and the best city for future job growth. We see many tech employees flee the Silicon Valley for a higher quality of life and more affordable cost of living. With the increase of startups in Austin, I would expect the influx of people to increase.
What Criteria Was Used to Rank Best Startup Cities?
The Kauffman Index used the following metrics to rank the cities:
- Rate of new entrepreneurs
- Opportunity share of new entrepreneurs
- Startup density
This is a yearly list the Kauffman Index publishes.
Austin Named #1 on Best US Cities for Startups List
Passing reigning best city for startups, Silicon Valley, Austin became the best US city for startups in 2015. According to the numbers, 0.55% of the Austin population became new entrepreneurs in a given month, the highest rate of all cities measured. This percentage came from the average number of new entrepreneurs monthly over 5 years. About 72% of new entrepreneurs in Austin were employed when they started their new venture, which was about average compared to the rest of the cities. There were also 180 startup businesses claimed in Austin, which was the third highest behind Miami and New York. Given Austin is the smallest of these three cities, that’s a pretty impressive stat.
Best US Cities for Startups
Curious how the rest of the list shaped up? Here are the top 25 best US cities for startups according to the 2015 Kauffman Index.
- San Jose (Silicon Valley)
- Los Angeles
- San Francisco
- New York
- San Diego
- San Antonio
- Las Vegas
- Virginia Beach
For the full list click here.
Considering Relocating to Austin?
It’s a great place to live and run a business. We relocated to Austin from the Silicon Valley and couldn’t be happier. We have a much lower cost of living and a higher quality of life. All of our clients who have made the same move are equally as happy and wouldn’t go back. For more info about relocating, check out our Guide to Relocating to Austin and our Austin Relocation Blog. Then, when you’re ready to reach out to a Realtor in Austin, call us at (512) 827-8323, email us at info@11OaksRealty.com or fill out our Relocation Survey.