New York is losing high-income earners to Texas – here’s why
Texas is attracting a growing number of high-income professionals and surpassing New York as the largest employer of workers in the financial services industry, excluding insurance and real estate.
At least 314 companies moved their headquarters to Texas between 2015 and 2024, according to U.S. State Department figures new research of the Texas Bureau of Economic Development and Tourism.
And Texas’ financial services hiring will surpass New York’s by 2025, with a 9% increase in job openings.
Forget Wall Street: Texas has become the new “Y’all Street.”
Major players are moving to Texas
Financial heavyweights such as Charles Schwab, JPMorgan Chase, Wells Fargo and Goldman Sachs have established significant operations in Texas, attracted by the pro-business climate, expanding consumer base, growth prospects, competitive real estate costs and large labor pool.
These companies attract top professionals to the state for positions in investment banking, asset management, private equity and corporate finance.
“I’ve been hearing Texas in these conversations for a while,” says executive recruiter Brandon Dockdirector of TGC Search in New York. “It feels like every other client conversation starts with ‘We’re building this in Dallas right now’ or ‘We need someone in Houston who can be in the room,’ and you can tell the talent is following the work.”
Dock says pay varies, but most candidates won’t move unless the price is right.
“A client will say, ‘We’re thinking $90,000 to $110,000 for an analyst, solid bonus, great benefits,’ and then the candidate comes back with, ‘Sure, but I’m not going to move for that. I need $120,000, plus, and I want the bonus to be clearly stated.’ And that little standoff is now essentially the Texas market. Employers still want prices in Texas. Candidates say: ‘Nice try, this is a real market.'”
Dock says executives — especially those relocating from New York or California — generally expect a base salary of at least $180,000, plus bonuses, to justify the move.
Last year alone, Texas lawyer Chad D. Cummingsof Cummings & Cummings Law, helped about 300 companies move to Texas – and he says tax breaks are a big draw.
“Texas has no state income tax,” he says Realtor.com®. “A financial services executive making $900,000 in New York hands over $100,000 a year to New York State and New York City alone, not including federal taxes. That same executive in Dallas is keeping every dollar of that $100,000.”
Cummings also notes that Texas is in the Central Time Zone, which allows financial professionals to cover both coasts in one trading day, which is another plus.
The Dallas real estate market is booming
While the financial industry is moving en masse to Texas, the real estate market in Dallas – where the average listing price is $405,000 – is certainly heating up.
“These types of employers bring in high-income professionals who are looking for good schools, easy commuting and a high quality of life for their families,” says Dallas real estate agent. Todd Luongfrom Re/Max. “This shift has certainly had an impact on the real estate market here.”
Luong says there is currently strong demand for single-family homes in various price ranges in the Dallas-Fort Worth area, but there is especially strong interest in homes priced between the median price of $400,000 and $800,000.
Lynda Villarreal of Douglas Elliman in Dallas tells Realtor.com that she is seeing people moving from California, New York and Chicago – and that there is expected to be an even bigger wave of wealthy buyers when the Texas Stock Exchange will be officially launched at the end of 2026.
“Texas is a friendly state economically for high-income earners, and people continue to be drawn to the state,” she says. “We are used to providing luxury customer service to high income earners and the lifestyle they want to maintain.”
Buyer and renter interest remains strong throughout the Dallas market.
“Rental demand has always been healthy, especially for young professionals,” Luong said. “Areas close to major employment centers such as downtown, uptown and Legacy West have seen strong leasing interest as people want flexibility and location.”
However, buyer interest is outpacing rental demand, Luong said. “With so many people moving here for a job and confident in their long-term plans, they are looking to buy rather than rent. This is especially true for families.”
Austin also attracts top talent
Cities across Texas are seeing a boom, including Austin, where the median sales price is $455,000, according to data from Realtor.com.
According to the American newspaper Austin, 51% more households have been added in the past ten years National Association of Realtors®– and senior economist at NAR Nadia Evangelou says young professionals are moving to the city for work.
“Austin fills the fintech and finance roles that are close to technology,” says Dock.
Wealth advisor Clint McCalla moved to Austin from California and says it was the right decision.
“Almost everything costs less in Austin,” he told Realtor.com in 2024. “Housing is the biggest savings for our family. We were able to purchase a beautiful home in an excellent school district with great neighbors, sunset views and an extremely friendly deer population.”
According to Cummings, financial professionals like Texas because they can achieve a higher standard of living at a lower price tag: “Bigger house, better schools, better weather. The math speaks for itself.”
