Red states are increasingly attracting corporate relocations, with Texas leading the way as businesses flee high-tax blue states like California and New York.
In a significant shift reshaping the U.S. economy, red states are emerging as the preferred destinations for corporate relocations, with Texas taking the lead. A report from CBRE, one of the nation’s largest commercial real estate brokerage firms, reveals that since 2018, 561 companies have moved their headquarters across the country. This trend indicates that businesses are reevaluating tax climates, operating costs, and growth prospects, highlighting the competitive advantage enjoyed by business-friendly states.
Texas has clearly established itself as the dominant player in this relocation trend. The Dallas-Fort Worth area has attracted 100 headquarters moves between 2018 and 2024, making it the top metro area for relocations in the nation. Austin and Houston have also seen significant activity, with 81 and 31 headquarters moves, respectively. Collectively, these three Texas markets have outperformed many entire states, underscoring Texas’ pivotal role in transforming the corporate landscape.
In stark contrast, California’s metropolitan areas have experienced substantial losses, particularly the San Francisco Bay Area, which recorded a net loss of 156 headquarters during the same period. As blue states grapple with regulatory and tax policy debates, Texas business leaders assert that the state’s favorable approach is yielding positive results. Megan Mauro, interim president and CEO of the Texas Association of Business, emphasizes the importance of Texas’ tax structure and regulatory environment in attracting businesses.
“We have a light regulatory touch and no personal or corporate income tax,” Mauro stated, pointing to Texas’ recent $25 billion surplus as evidence of a competitive tax environment. This perspective aligns with CBRE’s findings that companies frequently cite lower taxes, reduced operating costs, and enhanced growth opportunities as key factors in their relocation decisions.
The trend has intensified scrutiny of tax policies in high-cost states. Economist Steve Moore, co-founder of Unleash Prosperity, warns that these states risk losing wealth and investment. “It is common sense for business leaders to pick places for future financial success rather than economic suffocation,” Moore remarked.
Moore also noted that proposals like California’s 2026 Billionaire Tax Act are accelerating the outflow of wealthy residents to lower-tax states such as Texas and Florida. He describes this phenomenon as “voting with their feet,” as business leaders and affluent individuals seek environments that offer lower taxes, greater economic freedom, and prospects for future prosperity.
This migration trend is reflected in population data, which shows that from 2021 to 2024, Texas and Florida experienced the largest net population gains, while California and several northeastern states faced significant losses, according to IRS and U.S. Census Bureau data. Moore argues that the broader economic implications of this shift extend beyond corporate balance sheets. Growth in states like Texas can expand the tax base and provide additional funding flexibility for infrastructure, education, and other priorities—often without raising tax rates.
As economic performance increasingly influences midterm messaging, these migration trends are likely to play a prominent role in discussions surrounding tax competitiveness. Whether these patterns will continue remains uncertain. However, the current flow of population reinforces a critical point: tax policy is no longer merely an abstract debate; it is actively shaping where Americans choose to establish their futures.
According to CBRE, the ongoing trend of corporate relocations highlights the growing divide between red and blue states in terms of economic attractiveness and business viability.