It looks like the word is out: DFW is quickly becoming a hub for tech and startups. While the Metroplex has typically been in close competition with Houston as a startup hub, it appears to have a head start in terms of affordability.
Though most data analysis pieces on best places to live focus on crime rates and affordability, a new report by real estate website Clever has placed DFW as No. 3 in terms of best places to launch a startup, based on their research into startup density, cost of living, and amount of investment among other factors.
The North Texas region fell behind No. 1 Austin, but above No. 6 Houston. San Antonio was ranked No. 8. All of the cities listed in the top 11 are in the South.
According to the report, “Texas was ranked highly (#1 or #2) on many of our state-wide measures, including new and growth of business applications, number of private equity-backed businesses, billions invested in businesses, and number of private equity firms. Texas cities had the best representation of workers employed at startups (3 of the top 5 metros were located in Texas).”
In terms of density, growth and investment in business, DFW ranked 9th. According to the report, more than 277,000 people have moved to the region in the last two years. And, with no state or local income tax, the region ranked fairly high in terms of cost of living. Another factor that helped propel the region was the number of higher education institutions.
DFW also has the second largest investment-in-business average out of the list.
“That influx of residents, along with graduates from DFW's 40+ colleges, could pave the way for a productive team at any company,” the report reads.
However, due to the large amount of people moving here, especially from the West Coast, North Texas has been seeing an increase in rent prices and property value. It’s yet to see how that will play out in regard to DFW’s draw for startups, but the business-friendly climate of the state seems to show no signs of changing.
Based on the number of new businesses created in the last three years, the DFW region saw 26.5 percent growth in startups, with the density of startups increasing by about 7.3 percent. The data also showed that about 7 percent of North Texans are employed by a startup, while about 3 percent own their own business.
Below is a list of other stats from the report.
- VC businesses: 0.6%
- Education: 26.35% with bachelor's or higher
- Cost of living: 100.2%
