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Austin and Phoenix are both known for their Town Lakes, warm weather and fast growth. (Visit Austin/Facebook) (Visit Phoenix/Facebook)
Now, he's relocated to possibly even sunnier skies in Phoenix, Arizona. Like Austin, the Arizona capital has seen the pros and cons of rapid growth play out across the city, from HQs relocating en masse to a booming housing market and an increase of Californian move-ins.
Here's what the two summery cities do—and don't—have in common:
Big Growth
Austin and Phoenix have both been among the nation's fastest growing cities in the past decade. (Visit Austin/Facebook) (Visit Phoenix/Facebook)
Austin boasts a "boomtown" reputation thanks to recent transplant and Tesla CEO Elon Musk, but with over 160,000 newcomers migrating to Phoenix from 2010-2020, Phoenix takes the cake as the fastest-growing big city in the U.S.
But while Phoenix grew fast, the Austin metro grew faster, with more move-ins than any other U.S. metro in that same time frame.
Phoenix is also much bigger: While Austin hasn't quite cracked 1 million residents, over 1.6 million people call The Valley of the Sun their home. They're also the most populous capital cities in the U.S.
Both cities have seen an influx of newcomers from all walks of life, according to Anzaldua, who meets a lot of new homebuyers in his field of high-end appliances.
"It seems like you don't meet too many people born and raised in Phoenix," Anzaldua said. "There's a few, but the majority are new transplants. I mean, people from all over the country are moving here."
Both Austin and Phoenix are known as great places to be new: Austin was named the best city for move-ins in the world in 2021.
"Don't California My—"
Both Austin and Phoenix seem to have mixed emotions when it comes to new transplants, many of whom come from big cities in the Midwest and Pacific Northwest.
And as the West Coast moves East, many move-ins in the two cities are Californians—something that has caused fierce debate in cities from Austin to Boise, Idaho.
Californians made up more than a quarter of new moves to Phoenix in 2020. That was reflected at Arizona State University, where graduate Ivory Thornton said most of her classmates were from the Golden State.
Meanwhile, California was the largest source of migration to Austin outside of other Texas counties from 2015-2019. The state seems to have made plenty of enemies—while "Don't California My Texas" has become a growing mantra in the Lone Star State, the same mantra can be found on T-shirts in Arizona as well.
For Thornton, that's largely due to the city's booming housing market. Like Austin, the city has seen rent and housing prices spike as wealthier Californians used to more expensive housing buy out "cheap" housing in other cities.
"I was in the process of buying a townhome, but with all of the people moving over from California, the prices have skyrocketed," Thornton said. "Homes that used to be $200k-$300k are now $600k-$700k, so nobody can afford to buy and now everyone has to rent."
Housing, rent goes up, up, up
Both Austin and Phoenix are former cheap housing havens that have seen tremendous real estate amid the pandemic.
Average homes in Phoenix grew by over $100,000 from January 2020-2021, according to Realtor.com, and now sit at $457,000. That's near-identical to the Austin metro, which saw its median home price jump over 30% to $450,000 in the same time frame.
Homes are getting picked up quick. Anzaldua said his friend recently sold his home for $45,000 more than the asking price in just a day as both cities see demand outpace supply.
But comes as a blessing for home sellers can be a nightmare for buyers and renters.
Thornton said her apartment complex is raising her renewal rate by $150 and is having to allow tenants to pay their rent in multiple payments to avoid eviction. Now a social worker who has worked at a homeless shelter, Thornton said she's seen shelters swell in size while rent assistance programs and other resources run dry.
"Low-income areas in Phoenix are just expanding because the prices are increasing but the pay isn't," Thornton said. "I think somethings going to have to give because there's going to be a point where people just can't afford it."
Homelessness and affordability have become hot topics in Austin as well, as rent increased more than any other U.S. tech hub in 2021.
But there's still hope for less-affluent dwellers of both cities: the two have around the same cost of living, which is still near the U.S. average, and both are experiencing major job growth thanks to rapidly-growing markets.
Businesses
While Phoenix is largely driven by tourism and sports, Austin is known for its tech. (Visit Phoenix/Facebook) (PCPA/OneLux)
So why move to Austin or Phoenix?
A major incentive has been booming labor markets: the cities were side-by-side as two of the top 3 job growth markets in the U.S. in July 2021.
As the sailboat-inspired new Google tower finishes up construction in downtown Austin, it's become increasingly clear that the city is now more of a tech town than a hippie haven.
Known as one of the biggest emerging tech markets in the U.S., Austin has seen record job growth as companies like Tesla and Oracle relocated their headquarters to the city in the past few years.
The two join Dell as some of the area's biggest employers, while other industries, from its massive beer and brewery market to crypto, continue to put Austin in national headlines.
Phoenix hosts a more under-the-radar tech scene, but software jobs still increased by over 20% in the last five years. Instead of tech startups and blockchain companies, Phoenix has a bigger focus on manufacturing, real estate and tourism.
Tourism and business services now make up nearly 77% of the metro's total employment. Meanwhile, the area's warm weather has made Phoenix a sports hub: it's one of the few cities with all four Major league sports teams (NFL, NBA, MLB and NHL) and could be facing off Austin FC with an MLS team of its own sometime soon.
It's also the only city in the country with a spring-training MLB league and hosts professional golf and NASCAR racing arenas as well.
What's the difference?
Austin and Phoenix are both known for outdoorsy attractions. (Visit Austin/Facebook) (Visit Phoenix/Facebook)
Each city is attracting newcomers for similar reasons, although there are some key differences.
If Austin is hot, Phoenix is even hotter, with average high temperatures in the 100s all summer long. Austin's more humid heat brings more than 20 more inches of rainfall per year and fuels plenty of water-based activities at Lady Bird Lake or any local swimming hole.
Perhaps surprisingly, however, Phoenix has at Town Lake of its own and hosts many more hiking trails than Austin, featuring picturesque Sonoran Desert views. Both cities have earned a reputation as an outdoorsy person's paradise.
And while both cities are among the youngest in the U.S., Austin has a much busier nightlife. Some of the "Live Music Capital" heyday that Anzaldua remembers still remains, and newcomers can find plenty to do in the city's diverse art and music scene.
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Popular
Austin and Houston share states but have distinct differences that set the two Texas cities apart.
As Austin expands into "boomtown" status, it's become subject to a growing rivalry between another storied Texas city: Houston.
While Houston still edges out Austin in population—it's the fourth-largest city in the U.S. and boasts a metro of over 7 million compared to Austin's 2.3 million—Austin has been generating significant buzz as tech CEOs, Californians and migrants nationwide begin to call the Texas capital home.
Most Austinites will tout their Hill Country beauty, world-renowned live music and the proud "weirdness" that has long defined their city. But some say Houston's signature self-deprecating humor and status as the most diverse city in the nation gives them a leg up
It's time for these quarreling siblings to duke it out.
Here's how Austin and Houston compare, mapped out in five categories:
Affordability: Houston 1, Austin 0
Ask anyone in Austin: the city is not what it used to be. That change is no more apparent than in the skyrocketing housing market, which has shot from an average median home price of 189,000 in 2011 to a peak of $482,364 in June 2021, a 255% increase.
The exploding housing market is one of the best examples of Austin's "boomtown" status and is great for current homeowners, but it's a near-death sentence for many with an average income looking to survive. In fact, Austin is expected to become the least affordable metro outside of California by the end of 2021.
According to Salary.com, this translates into the cost of living—it's 11% more expensive to live in Austin than its southeast Texas neighbor.
With both cities nestled in Texas, a state well-known for its bang-for-your-buck housing, both are still attracting ex-pats from expensive metros across the nation. But Houston's reputation as an affordable city lingers.
A study by Property Club in 2019 found that a homebuyer in Houston with $250,000 could purchase 1,204 square feet—six times more than in NYC and more than 49 of 50 global cities studied.
That affordability is conditional, however—the fourth-largest city in the nation differs drastically in price in different neighborhoods. And Houston's housing market is beginning to heat up just as Austin's slightly cools, with home prices up 15.7% in September 2021 as compared to the year before.
"We are witnessing the most energized Houston real estate market in history," Houston Association of Realtors Chairman Richard Miranda said in a June 6 monthly update. "It's difficult to predict how and when this incredible housing run will end."
But with a median home price of $285,000, Houston's housing prices are still just a rumble compared to Austin's boom. Kevin Quist, a Houston urbanist activist, said that comes down to the cities' different zoning policies.
To the chagrin of struggling Austinites everywhere, Houston takes the cake with this one.
Economy: Austin 1, Houston 1
Austin has come a long way from its days as a college town. While a major employer for the city continues to be the University of Texas and the Texas Capitol, the city has been dubbed "Little California" by recent move-in Elon Musk for a reason.
The area's tech boom, headlined by Tesla CEO Musk and his upcoming Giga Texas plant, brought in tech transplants including Oracle, blockchain companies like Blockcap, and 35 others in 2020 alone.
With Fortune 500 companies like Dell and national brands like Indeed and Bumble already in the area, Austin has become the darling of startups looking to relocate to a California-esque utopia with no state income tax.
But the Energy Capital earned its namesake for a reason—the city is home to 24 Fortune 500 companies and over 500 oil and gas firms. With a seven-mile-long Energy Corridor and nine refineries, Houston's opportunities abound.
Still, Austin's job market is projected to expand by 47% in the next decade to Houston's 30%. While both sit under the national average of 5.2% unemployment rate in August 2021, Houston saw a 4.9% unemployment rate compared to Austin's 3.8%. And with many parts of Houston experiencing higher poverty rates than others, Houston's average income is nearly 20,000 less than Austin's $71,579 at $52,558.
Austin may be hard to live in, but its current economic opportunity outpaces Houston.
Janice Omadeke, CEO of startup The Mentor Method, is one of many startup CEOs in Austin. (The Mentor Method/Facebook)
Diversity and Culture: Houston 2, Austin 1
According to Wallethub, Houston was the United States' most diverse city in 2021. By contrast, 38th-place Austin has become more cosmopolitan in recent years but is losing some minority residents—census data shows the city's Black and Hispanic populations decreased from 2010 to 2020.
That's not to say that Austin doesn't have culture—it's a majority-minority city that has seen its Asian-American population skyrocket and diversify. It's not uncommon to find Spanish spoken in Austin, with a quarter of residents speaking Spanish at home and Spanish-language chants like "Dale ATX" chanted at the city's first professional soccer team, Austin FC.
That diversity bleeds into food. The breakfast taco hub is home to Tex-Mex eats of every creed, and residents can grab bites from all the world's cuisines at its ample food truck locales. But with 145 languages spoken in the metro, Houston's dining scene far outpaces Austin's in variety,
While Austin beat Houston in socioeconomic diversity in the same Wallethub study, that may be more due to economic segregation than anything else. According to the city of Austin, an "island of affluence" has emerged to the west even as some means of residential segregation have improved. Houston, on the other hand, often sees "newly poor" neighborhoods right next to their more affluent counterparts.
While neither topped the charts in religious diversity, Houston is the third-most religious area by percentage of population in the U.S., slightly edging out Austin when it comes to places of worship.
It looks like being a truly global city does have its perks. Houston is once again up, 2-1.
Himalaya Houston pairs fried chicken with Pakistani flair for a truly Houston dish. (Himalaya/Instagram)
Identity: Houston 2, Austin 2
Whether it be the Live Music Capital or Keep Austin Weird, Austin has always known what it is. Legends including Willie Nelson and Janis Joplin helped join a massive musical movement in the 1970s that saw hippies, outlaws and cutting-edge artists flock to the Live Music Capital of the World in the mid-to-late- 1900s. By 1991, the city discovered it had the most live music per capital, and an iconic name was born.
Houston, however, has seen a few failed slogans—see an "Austin City Limits" knockoff, "The City With No Limits," or even worse, "Houston's Hot." The city's new unofficial slogan, "Houston. It's Worth It," embraces its imperfections as what makes it special, a name that is aptly fitting for the city's signature self-deprecating humor.
While Houston has finally found its niche as an imperfect place for imperfect people, Austin has known its identity for years-even if some say it's beginning to blur.
The tech boom has seen some of that laid-back Austin swagger morph into a more corporate feel, accentuated by new developments such as The Domain. Every year, new move-ins and natives alike lament about the legendary "old Austin" and its wacky eccentricities.
But the world-renowned music festival Austin City Limits still exists. Weirdness is still accepted in this city like no other-from The Austin World Naked Bike Ride to playing bingo with "chicken shit."
That historic identity shines through, albeit less bright, in every corner of the Texas Capitol. Austin ties it up 2-2.
(Charles Reagan/ACL)Lifestyle: Austin 3, Houston 2
In June, Texas Monthly instigated a war when they wrote an article imploring Austinites to move to "an affordable, weird city: Houston."
"Those Austin amenities that people swear they could never do without—the live music! The outdoors! The progressive attitude!—exist in every other major metropolis in one form or another," writer Evan Mintz said.
But as stated before, that weirdness is not quite matched even in global cities like Houston. In fact, Houston's big-city status may be what hinders it from certain Austin-y amenities.
Even as things change, remnants of Austin's small-town charm still shine through in pockets of seemingly millions of local cafes, wacky mom-and-pop shops and character-filled neighborhoods. Festival culture abounds, from the Moontower Comedy Festival to SXSW, to give residents a fiesta feel all year long.
While Houston has Austin beat in sports ventures—think Astros and Texans—Austin professional soccer team Austin FC has made Q2 Stadium "the biggest party in Austin," and University of Texas tailgates are unmatched. Not a fan of watching? Join sports teams from Quidditch to pickleball.
The Hill Country beats the bayou, as well—a Texas beach isn't too far from Houston's interior, but a river cuts through downtown Austin, improving residents' quality of life with its acres of hiking trails, swimming holes and more.
Houston defeats Austin in sheer numbers of things to do, but Austin takes it home in the lifestyle category to beat its fellow Texan sibling once and for all.
Austin FC matches are just one of many ways to get your party on in Austin. (Austin FC/Twitter)
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