Texas is a magnet for drawing people, jobs and businesses. For 22 straight years, Texas has ranked as the Best State for Business by Chief Executive magazine. It is a leader in attracting company headquarters, from the world’s largest multinational corporations to single-establishment firms. Many of these companies — encompassing a variety of industry sectors — have relocated to Texas in recent years, a testament to the state’s attractive business environment and diversified economy.
Texas Attracts Businesses, Big and Small
In 2025, Texas was home to 54 Fortune 500 companies, an annual list by Fortune magazine that ranks the largest U.S. corporations by total revenue. Of the 54 headquarters in Texas, 23 were in the energy sector, with 18 of these located in the Houston-Pasadena-The Woodlands metropolitan area. This metropolitan area, in fact, led all Texas metro areas with 26 Fortune 500 headquarters, followed by Dallas-Fort Worth-Arlington (21), Austin-Round Rock-San Marcos (3), San Antonio-New Braunfels (3) and Midland (1) metros. While the Dallas-Fort Worth-Arlington area did trail Houston-Pasadena-The Woodlands in total Fortune 500 headquarters, its headquarters represented a wider variety of sectors (Exhibit 1).
Exhibit 1
Count of Fortune 500 Companies in Texas by Sector and Area, 2025
Each dot () is one company.
Count of Fortune 500 Companies in Texas by Sector and Metro Area, 2025
Fortune Industry Sector
Headquarters by Metro Area
Houston- Pasadena- The Woodlands
Dallas- Fort Worth- Arlington
Austin- Round Rock- San Marcos
San Antonio New Braunfels
Midland
Business Services
Chemicals
Energy
Engineering and Construction
Financials
Health Care
Hotels, Restaurants and Leisure
Household Products
Industrials
Materials
Motor Vehicles & Parts
Retailing
Technology
Telecommunications
Transportation
Wholesalers
Source: Fortune
Note: Industry sectors identified by Fortune
Since 2015, 12 Fortune 500 companies have relocated to Texas from other states, with seven moving to the Dallas-Fort Worth-Arlington metro area. These represent various sectors, from energy and construction to business services in finance and technology.
Nine of the Fortune 500 companies that moved to Texas between 2016 and 2024 came from California (Exhibit 2).
Data from the Texas Economic Development & Tourism Office, within the Office of the Governor, further supports these trends: 314 corporate headquarters (PDF) relocated to Texas between 2015 and 2024 and announced 7,360 new jobs in the state. The Comptroller’s office estimates each new job from these relocations produced another 1.6 indirect jobs. These relocations alone contributed to an added $2.3 billion in gross domestic product and $1.6 billion in disposable personal income during this period.
California was by far the largest source of relocations to Texas with 157 during this period, resulting in 3,475 new jobs to the state. The next highest sources of relocations were New York (24), Illinois (18) and Florida (12).
The Dallas-Fort Worth-Arlington metro area landed the most relocations with 154, followed by the Austin-Round Rock-San Marcos metro area with 97 and the Houston-Pasadena-The Woodlands metro area with 41. Texas experienced a spike in relocations in 2021 following COVID-19, particularly in the Austin area (Exhibit 3). Relocations have since subsided, returning to a rate comparable with historical trends.
Exhibit 3
Headquarters Relocations to Texas, 2015-2024
Exhibit 3 data
Headquarters Relocations to Texas, 2015-2024
Location
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
Dallas-Fort Worth-Arlington
8
8
15
13
14
22
30
19
10
15
154
Austin-Round Rock-San Marcos
5
6
4
8
12
13
33
6
4
6
97
Houston-Pasadena-The Woodlands
1
5
1
7
2
5
7
10
1
2
41
San Antonio-New Braunfels
0
1
0
2
1
2
6
1
0
1
14
Other
0
0
0
0
1
0
3
2
2
0
8
Total
14
20
20
30
30
42
79
38
17
24
314
Source: Texas Economic Development & Tourism Office
Company moves to Texas aren’t limited to larger businesses. The U.S. Bureau of Labor Statistics tracks migration of single-establishment firms. From 2021 through 2023, the net migration of single-establishment firms to Texas was 411, second only to Florida’s 1,721. Firm migration is highest among the professional, scientific and technical services industry, which represented 30% of firm migration in 2021, up from just 16% in 1994. Businesses in this industry generally require high levels of expertise, such as roles in accounting and payroll services, computer services and consulting services. Migration of these firms increased dramatically following the COVID-19 pandemic, as more businesses embraced remote work policies. (Exhibit 4).
Exhibit 4
Annual Net Single-Establishment Firm Migration to Texas, 2013-2023
Exhibit 4 data
Annual Net Single-Establishment Firm Migration to Texas, 2013-2023
Year
Count
2013
32
2014
64
2015
74
2016
53
2017
58
2018
72
2019
51
2020
59
2021
99
2022
187
2023
125
Source: U.S. Bureau of Labor Statistics
The influx of business headquarters to Texas mirrors the state’s total population changes. Between 2020 and 2025, Texas’ population rose by nearly 2.5 million, by far the most of any state. Texas also boasted one of the largest population percentage gains during this period — 8.5% — a feat considering the state’s large population.
Population gains were bolstered by strong net gains in both international and domestic migration in the years following COVID-19. In the three-year span from 2021 to 2023, Texas’ net domestic migration rose about 607,000, much higher than the increase of 291,000 the state experienced between 2017 and 2019. Like the inflows of business headquarters, Texas’ population gains have since subsided, particularly for net domestic migration (Exhibit 5).
Exhibit 5
Components of Population Change, Texas, 2015-2025
Exhibit 5 data
Components of Population Change, Texas, 2015-2025
Year
Natural Increase
Net International Migration
Net Domestic Migration
Net Population Change
2015
214,435
117,265
172,183
503,883
2016
213,780
110,382
120,979
445,141
2017
195,226
96,215
84,806
376,247
2018
179,170
69,138
84,638
332,946
2019
173,851
66,791
121,411
362,053
2020
157,330
54,650
162,299
374,279
2021
94,381
43,481
199,360
337,222
2022
123,136
198,371
218,840
540,347
2023
158,683
251,690
188,667
599,040
2024
157,366
354,864
86,067
598,297
2025
157,711
167,475
67,299
392,485
Source: U.S. Census Bureau
Why Texas?
Texas has a wealth of inherent strengths that attract people and businesses. Its expanding and diversifying economy is bolstered by its central location, proximity to Mexico and critical infrastructure — including 23 seaports, 11 land ports, some of the busiest airports in the U.S. and the corporate headquarters of Southwest Airlines and American Airlines. Texas also benefits from its relatively low cost of living, pro-business policies, a low tax burden — including no income taxes.
Access to abundant and relatively cheap sources of energy also greatly benefits Texas. The state is the top producer in oil and gas, accounting for 42% of crude oil and 27% of marketed natural gas production. Its 32 petroleum refineries can produce more than 5.9 million barrels of crude oil per day. Texas also is the national leader for utility-scale solar power generation capacity and wind energy capacity.
These strengths often are exemplified by industry clusters, which form and grow based on supply chain relationships, proximity to natural resources and distribution channels, and access to trained labor and education systems. Clusters are self-reinforcing, creating a virtuous cycle of innovation and economic growth.
One method to identify strong industry clusters in a region is through location quotient (LQ) analysis, a quantitative tool that compares a cluster’s employment concentration in a region compared to the national average. If an area has a LQ of 1.25 — meaning the share of industry employment in the area is 25% greater than in the U.S. — that area is considered to have a competitive advantage in that cluster. Exhibit 6 lists the top industry clusters by LQ in the state’s largest metro areas, many of which have high average wages and have a corporate headquarters presence.
Exhibit 6
Top Industry Cluster Groups by Selected Metropolitan Area and Representative Headquarters
Top Industry Cluster Groups by Selected Metropolitan Areas and Representative Headquarters
Industry Group
Metro Area
Industry Group Location Quotient
Employment
Average Wages
Headquarter Examples
Electric/Electronics Manufacturing
Austin-Round Rock-San Marcos
2.87
38,902
$180,599
Dell Technologies
Media (including software)
Austin-Round Rock-San Marcos
1.46
28,914
$139,632
Oracle
Professional Services
Austin-Round Rock-San Marcos
1.38
293,108
$131,542
Indeed.com
Financial Services
Dallas-Fort Worth-Arlington
1.50
257,669
$138,773
Charles Schwab
Electric/Electronics Manufacturing
Dallas-Fort Worth-Arlington
1.32
56,766
$143,953
Texas Instruments
Professional Services
Dallas-Fort Worth-Arlington
1.22
822,614
$105,289
AT&T; Jacobs Solutions; AECOM
Coal/Oil/Power
Houston-Pasadena-The Woodlands
4.04
117,035
$223,008
ExxonMobil; Chevron
Chemical
Houston-Pasadena-The Woodlands
1.69
52,189
$131,018
Westlake
Construction
Houston-Pasadena-The Woodlands
1.40
305,662
$83,264
Quanta Services
Utilities
San Antonio-New Braunfels
1.60
9,161
$80,770
CPS Energy
Auto/Auto-related
San Antonio-New Braunfels
1.49
29,524
$76,169
Rush Enterprises
Coal/Oil/Power
San Antonio-New Braunfels
1.41
13,985
$126,090
Valero Energy
Source: Chmura JobsEQ
Note: Data as of 2025 Q3. Industry cluster groups defined by Chmura JobsEQ.
The state of Texas fosters these industry strengths with an interest in helping them continue to flourish. The Texas Economic Development & Tourism Office’s “Bigger. Better. Texas.” Statewide Economic Development Strategic Plan highlights several target industries that drive innovation and growth, including advanced manufacturing, life sciences and biotechnology, energy evolution, information technology, tourism and culture and more.
In its report on relocations, CBRE surveyed the top reasons that companies relocate. An area’s business climate, such as lower taxes and higher incentives, was the most cited response. Other reasons included consolidation of operations and portfolio optimization; access to consumer base; growth opportunities; labor availability; lower cost tech talent; and lower cost real estate.
Many of these same reasons were identified by companies that have recently relocated to Texas. Chevron, which moved from California to Houston in 2024, cited proximity to its suppliers as a reason, as well as the welcoming business environment and lower cost of living. Similarly, in its move from Princeton, New Jersey, to Houston in 2021, NRG Energy described its move as a “step that simplifies our operations.”
AECOM, an infrastructure consulting and professional services firm, moved to Dallas from Los Angeles in 2021, citing it as a strategic step to leverage Dallas’ business-friendly environment and central location. AECOM joins two other major infrastructure companies in the Dallas area — Fluor and Jacobs Solutions — a testament to the region’s supply networks and opportunities for growth.
When Realtor.com moved its headquarters from California to Austin in 2025, the company cited the region’s dynamic economy and housing growth, its strong and growing talent pool, its lifestyle and affordability and its expansive tech and academic community.
In addition to its affordability and business-friendly environment, Texas currently offers a variety of grants, tax incentives and financing to attract businesses. Exhibit 7 provides a full list of state incentive programs. Further detail on these programs can be found on the Texas Economic Development & Tourism Office’s Incentive & Financial Programs webpage.
Exhibit 7
State Business Incentives and Programs
Grants
Texas Enterprise Fund (TEF)
Texas Semiconductor Innovation Fund (TSIF)
Texas Moving Image Industry Incentive Program
Texas Music venue Incubator Rebate Program
Lonestar Workforce of the Future Fund (LSWF)
Self- Sufficiency Fund
Skills Development Fund
Skills for Success
Cancer Prevention & Research General Obligation Bonds Program
Defense Economic Readjustment Zone Program (DEAAG)
Economic Development & Diversification In-State Tuition for Employees
Franchise Tax Deduction for Business Relocation
Medical or Biomedical Property Tax Exemption
Research & Development Tax Credit
Ad Valorem/ Property Tax Exemption (Local Tax Incentives)
Chapter 380/ 381 (Local Tax Incentives)
Chapter 312 (Local Tax Incentive)
Media Production Development Zone Program
Sales Tax Exemptions for Media Productions & Facilities
Renewable Energy Incentives
Financing
State of Texas Industrial Revenue Bond Program (IRB)
Texas Energy Fund
Texas Micro-Business Disaster Recovery (MBDR) Loan Program
Texas Military Value Revolving Loan Fund (TMVRLF)
Texas Small Business Credit Initiative (TSBCI)
Chapter 311 (Tax Increment Financing)
Texas Advanced Nuclear Development Fund (TANDF)
Source: Texas Economic Development & Tourism Office
Texas’ expanding headquarters presence reflects its strong business climate, diversified economy, growing population and skilled workforce. With its strategic location and business-friendly policies, Texas continues to foster industries that drive innovation and growth. Together, these strengths position Texas to remain a national leader in corporate headquarters growth.
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