Start up at a low cost
Austin is America's most affordable city for startups, says new report
Austin has long been known for its great quality of life and status as an emerging tech hub, and a new study finds that when it comes to startups, the Capital City can't be beat.
When it comes to startups, Clever, a real estate tool and blog, identifies Austin as the best metro in the United States for affordability. The study looks into startup density, startup growth, investment, the education level of the local population, cost of living, and more within the top 50 most populated cities in the U.S.
The resulting ranking places all four of Texas' major metros in the top 10. After Austin at No. 1, Dallas-Fort Worth comes in at No. 3, Houston-The Woodlands-Sugar Land follows at No. 6, and San Antonio-New Braunfels lands at No. 8.
Austin ranks higher than its Texas counterparts and the nation for startup density, at No. 1, a measurement of new and forthcoming businesses (3 years old and younger). Austin also has the second highest share of residents working at a startup at 8.6 percent, along with a No. 7 ranking for its startup growth rate of 9.1 percent.
The report also notes several Capital City highlights, including paddle boarding, barbecue, and live music. But there's more more to this city than recreation, it adds.
"The metro has over 2.2 million residents, up nearly 80 percent since 2000. With cost of living expenses only 0.5 percent above the national average and no corporate or personal state income tax, we can see why the Austin metro ranked No. 1 in startup density and No. 2 in the percentage of residents working for a startup," reads the report.
And when it comes to education, Austin has even more bragging rights. The metro area is home to more college-educated residents than any other area in Texas, with 34.5 percent holding at least a bachelor's degree.
In August, Inc. magazine named Austin among the hottest startup cities, citing a three-year revenue growth of 259 percent and 87 companies on the 2019 Inc. 5000 list.
A version of this originally appeared on InnovationMap.com. Additional reporting by Johnathan Silver.