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Miami vs Austin: Sunbelt cities draw Californians, competing for tech-odus transplants

Miami and Austin are going head-to-head for tech transplants. (Pexels)
Californians love Texas, and Austin—with its liberal politics, relatively affordable housing and job opportunities—is particularly adored. In fact, the Lone Star State was the main recipient of departing Californians in 2019, according to the latest available U.S. Census Bureau data.
But other states, including Florida, are seeing increased interest. Miami Mayor Francis Suarez has made a name for himself on Twitter recruiting techies and hyping up his city, which has a lot in common with Austin—with the added benefit of a beach and sans the "Don't California my Texas" attitude.
How can I help? https://t.co/hIC1k8ka1i
— Mayor Francis Suarez (@FrancisSuarez) December 5, 2020
California expats and industry experts say Austin remains the bigger draw, especially for Californians in the tech sector, but some warn that this advantage could shift to Miami if the city doesn't address the policy challenges that prompted the migration in the first place: housing affordability.
"If Austin doesn't accommodate this influx, I think all the talent will come to Miami," said Peter Yared, a tech entrepreneur who moved to Miami from San Francisco in September. "I think Miami's going to be the one that sucks it all up."
Push factors
Both Texas and Florida promise business-friendly state tax policies, and their governors tout the relocations of companies such as Tesla and Oracle from California. But Darien Shanske, a law professor at the University of California Davis whose specialties include state and local taxation, said this is a red herring because corporate taxes are based on where sales occur rather than headquarter locations.
This is not to say state policies are irrelevant. "The area in which California regulatory policy has been, in my opinion, not a complete failure but problematic … is housing policy," Shanske said. Austin and Miami can offer "not cheap, just cheaper" housing than what is available in Silicon Valley. Plus, both cities are developing a critical mass of talent, which further draws Californians in. "If you're a software engineer, you want to live near other software engineers," he added.
But not every Californian is motivated to move. "San Francisco is a fantastic place to live if you can afford it," said Brandy Aven, a professor of entrepreneurship at Carnegie Mellon University's Tepper School of Business. As a result, it's more common for what she called the labor—engineers, programmers and even company founders—to relocate to cities such as Austin and Miami than the monied venture capitalists. Burgeoning tech cities may find that they need to develop homegrown investor networks to support local ventures in the absence of Californian transplants, but she believes this is doable.
Pull factors
Paul O'Brien, CEO of the Austin-based MediaTech Ventures and a startup veteran, moved to Austin from California in 2009, during the Great Recession. "I'm a firm believer that the world has been seeking an alternative to Silicon Valley for a long time," he said, pointing to Austin as the natural heir for myriad reasons.
Austin has regional appeal as the epicenter of three of the country's largest cities—Houston, Dallas and San Antonio—and their respective industry niches. Tech entrepreneurs could cater to the local consumer goods industry or Houston's oil and gas sector. Plus the city has cultural appeal, thanks to the Red River District and South by Southwest, which made it attractive to job seekers. "The whole reason everyone moved to Silicon Valley is opportunity," O'Brien said. "The whole reason people are now looking beyond Silicon Valley to somewhere else is opportunity."
It's less clear what Miami's key industries are, O'Brien said, but the city offers other selling points, including the mayor's buy-in and "a tremendous depth of wealth" to support a technology and startup ecosystem.
Although Yared didn't consider moving to Austin, he is aware of its appeal to engineers, especially now that their hero, Elon Musk, has moved there, shunning California. "Austin has a lock on tech," he said, but Miami draws a different crowd, including financiers from New York. This parallel migration, coupled with the city's more outwardly pro-growth building policies, gives him hope that Miami could supplant Austin in the coming years. "In the end, communities get to choose what they want," he said.
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Popular
(We Are Blood/Instagram)
Communities are rallying together after an 18-year-old shot and killed 19 students and two teachers at Robb Elementary School in Uvalde, Texas.
Funds from organizations all around the state–including from Austin’s own Los Verdes–are being raised to support families affected by the tragedy. Here's how you can help.
Donate blood
If you are looking for ways to help, please consider donating blood. Your donation can help ensure we have supplies immediately available for the victims of this tragic shooting.
— University Health (@UnivHealthSA) May 24, 2022
Our donor room has availability the rest of the week. Please schedule online: https://t.co/0F2lKDqYzO
Austin-area residents can donate blood with We Are Blood.
South Texas Blood & Tissue was able to send a total of 25 units of blood both to the school and local hospitals to support treatment. After an emergency blood drive on Wednesday, the blood center is hosting a Memorial Day blood drive and should have appointments opening the following week.
The largest blood transfuser in the San Antonio area, the University Health System, is also asking members of the community to donate blood. Appointments may be scarce due to demand.
Donate
The Los Verdes community is heartbroken at today's senseless act of gun violence in Uvalde that ended 15 lives too early. We are currently raising funds to support the families who lost loved ones today, and you can join by donating here. https://t.co/52L1ZtbSND
— Los Verdes (@LosVerdesATX) May 24, 2022
There is a growing list of verified fundraisers through GoFundMe, where almost $2 million has been raised so far for families and victims of the tragedy.
- The VictimsFirst fundraiser is raising $2 million to provide “100% of what is collected” to the victims’ family members.
- Austin-based Los Verdes Supporter Group is raising $100,000 for the families “affected by the horrific school shooting at Robb Elementary.”
- Allison McCullough, the aunt of victim Makenna Lee Elrod, is raising $50,000 for her family.
- The Alithia Ramirez funeral fund is working on raising $8,000 for the young girl’s funeral.
- More are being added by the hour.
Additionally, both Rushing-Estes Mortuary Uvalde and Hillcrest Memorial Funeral Home are offering free services to families of the victims.
Other fundraisers
An official account with First State Bank has been set up for donations through UCISD to assist the families of this tragedy.
— Uvalde CISD (@Uvalde_CISD) May 25, 2022
Please know that the FSB account, is the only verified location to make any monetary donations. No other source is currently recognized. pic.twitter.com/psQb6fD6Ls
Uvalde CISD has opened an account to support families of the victims with the First State Bank of Uvalde. Checks to donate should be made payable to the "Robb School Memorial Fund" or through Zelle at robbschoolmemorialfund@gmail.com.
The League of United Latin American Citizens has created a fund for victims, which it says will donate 100% to families and University Health has also organized the Uvalde Victims Relief Fund to help provide care for victims.
H-E-B has also donated $500,000 to aid victims and is collecting donations for its Spirit of Giving Fund, which supports philanthropic efforts in the wake of Texas tragedies. Starting Wednesday, shoppers at H-E-B, Central Market, Joe V’s Smart Shop and Mi Tienda can donate at checkout or online.(Sergio Flores/The Texas Tribune)
By Patrick Svitek
Beto O'Rourke caused a dramatic scene on Wednesday when he angrily confronted Gov. Greg Abbott at his news conference about the Uvalde school shooting, yelling, "This is on you."
After Abbott was done giving his initial remarks, O'Rourke approached the stage and told Abbott he was "doing nothing" to combat gun violence. He said the Uvalde massacre, in which a gunman killed 19 children and two adults, was "totally predictable."
Some of the Republican officials onstage with Abbott quickly denounced O'Rourke, telling him to go away. Another man onstage used expletives to criticize O'Rourke for interrupting the event. O'Rourke was eventually escorted away amid the unruly scene.
“I can’t believe that you’re a sick son of a bitch that would come to a deal like this to make a political issue,” Uvalde Mayor Don McLaughlin told O'Rourke at one point.
.@BetoORourke just showed up and shook things up. @statesmanpic.twitter.com/Z1FtBwUEdJ
— Luz Moreno-Lozano 🦇 (@LuzMorenoLozano) May 25, 2022