Individual Investing Blog

Is Dallas the Next NYC?

Written by Ellie Perlman | Aug 12, 2024 4:00:00 AM
Dallas has rapidly become a magnet for businesses and individuals, drawing comparisons to traditional powerhouses like New York City. With a steady influx of companies relocating from across the country and even internationally, coupled with the announcement that Texas is launching its own stock exchange, Dallas is positioning itself as a major hub for innovation, economic growth, and opportunity. The question is no longer whether Texas is rising, but whether it might soon rival NYC as the nation’s premier business capital.
 
The Wave of Business Relocations: Dallas Leads the Way
 

Texas has become the destination of choice for businesses looking to relocate or expand. From tech giants like Tesla and Oracle to financial powerhouses such as TIAA Financial Services, companies are finding Texas’s business environment irresistible. In 2023, Texas continued to attract a diverse array of companies from across the U.S. and abroad, including significant moves by Frontier Communications and Fisher Investments to the Dallas-Fort Worth area.

One of the most notable recent moves is TIAA Financial Services’ decision to relocate its offices from Denver to Frisco, Texas, by 2026, bringing up to 1,000 jobs to the region. This relocation is part of a broader trend that has seen the Dallas-Fort Worth metroplex become a hotspot for corporate America.

 Dallas Leading Population Growth in Texas 
 

The Dallas-Fort Worth (DFW) Metroplex is not just attracting businesses—it’s also leading the way in population growth. According to the U.S. Census, DFW experienced the largest population increase of any U.S. metropolitan area in 2023, adding over 152,000 new residents, bringing its total population to more than 8.1 million. This surge in population underscores the region’s growing appeal, not just for companies but also for individuals seeking new opportunities. As DFW continues to expand, it’s becoming clear that this area is a critical driver of Texas’s overall growth.

Affordable Living: Texas’s Competitive Edge
 
Texas’s affordability is one of its strongest draws. Unlike New York City, where the cost of living is notoriously high, Texas offers significantly lower housing prices and overall living expenses. This affordability extends to commercial real estate, where companies can save on operational costs while expanding their footprint. Texas’s central location and streamlined processes for land acquisition and building permits make it an attractive option for businesses looking to establish a presence quickly. Attracted by Texas's affordability and the influx of major corporate headquarters, the Lone Star State is experiencing a substantial wave of domestic migration.
 
 
A Growing Housing Challenge
 

However, the influx of businesses and residents has created a new challenge: a growing housing shortage. With demand outpacing supply, there is increasing pressure on the housing market, particularly in major cities like Austin and Dallas. More than 50% of Texas residents are renters, and the gap between supply and demand is driving up rents in many areas. This trend could lead to significant rent premiums in existing housing projects, making affordable housing an urgent issue for the state.

 
 Texas as a Tech Hub: The New Silicon Valley?

Texas is not just attracting established businesses; it’s also becoming a hub for tech innovation. Companies like Inbenta and Hanyang have relocated to Texas to tap into this growing tech ecosystem, further strengthening the state’s position as a key player in the technology sector.

Final Thoughts
 

As more companies and individuals move to Texas, it’s clear that the state is not just a rising star but a new center of economic and cultural influence in the U.S. While New York City has long been the epitome of American business and culture, Texas is rapidly redefining what it means to be a hub of innovation, opportunity, and growth.

Whether Dallas will fully replace NYC as the nation’s premier city remains to be seen, but one thing is certain: Dallas is a force to be reckoned with, and its impact on the future of business in America is undeniable.

---

About Ellie Perlman
 
Ellie Perlman is the founder and CEO of Blue Lake Capital, a woman owned multifamily real estate investment firm focused on partnering with family offices and accredited investors to build and preserve generational wealth. Since its founding in 2017, Blue Lake has successfully acquired and operated multifamily assets across high-growth U.S. markets, completing $1B+ in transactions.

At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.

In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.

Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.

Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.

You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com
 
*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.