Texas: The New Financial Powerhouse?
As New York's policies push businesses away, Texas is emerging as the financial hub of the future.
New York has been the undisputed financial capital of the U.S. and the world for years. But as the Empire State’s economic policies grow increasingly anti-business, other states are stepping up to challenge its dominance. Texas, for one, has become a major player, as the Dallas metro area has been experiencing a financial boom. This surge has earned Dallas a new nickname: “Y’all Street.”
As of July 2024, around 367,000 people in Dallas-Fort Worth worked in finance, making up 9.8% of the area’s nonfarm workforce. In comparison, New York’s finance sector employed about 836,000 people—8.1% of its workforce. While New York has seen a modest 1.6% growth in finance jobs since the pandemic, Dallas has experienced a whopping 12.4% increase.
Financial giants like JPMorgan, Bank of America, Goldman Sachs, and Wells Fargo now have a significant presence in Dallas. In fact, JPMorgan, America’s largest bank, employs more people in Texas than in New York.
The appeal isn’t just limited to finance. Major companies across industries are moving their headquarters to Texas, drawn by business-friendly policies like no personal income tax, low business taxes, and Right-to-Work protections. Chevron’s relocation from California to Texas is just one example. Today, Texas boasts more Fortune 500 companies than New York.
And it doesn’t stop there. Texas may soon have its own stock exchange. The Texas Stock Exchange (TXSE) has raised enough funds to challenge the New York Stock Exchange and Nasdaq, further solidifying Texas’ position as a financial Mecca.
So, why the move to Texas? According to the latest Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, Texas ranks 6th in the U.S. for economic outlook. Meanwhile, New York consistently ranks at the bottom, with the highest personal and corporate income taxes in the country. As a result, people are leaving New York in droves.
Texas, on the other hand, gained more than 1.6 million new residents from domestic migration in the past decade. And it’s not just people who are flocking to the state—businesses and wealth are, too. Between 2021 and 2022, over $10 billion in adjusted gross income flowed into Texas.
As long as Texas continues to prioritize business-friendly policies, its economy will keep growing, and more people and companies will follow. The only question that remains is when will other states take note and embrace the “Y’all Street” model.