AUSTIN, TX—Elon Musk's residential move follows the news that Tesla is building a gigafactory in Austin. With both Tesla and now Oracle moving to Texas, it is clear that Austin is rapidly becoming a top technology hub. These businesses and high-net worth individuals are ditching former coastal properties in favor of Austin where the tax incentives are too good to pass up.

Real estate developer, Ari Rastegar, CEO and founder of Rastegar Property Company, has seen this shift occurring for some time now but he noticed a significant uptick since the start of the pandemic. As more tech giants see Austin as not just a viable but lucrative alternative to Silicon Valley, Rastegar believes the growth will continue. This is due to several reasons:

• Texas is a more pro-business state, with more tax incentives for these companies to leave Silicon Valley.
• Musk moving to Texas bucks the trend of public figures and high-net worth individuals wanting to be associated with New York and California.
• Apple's forthcoming headquarters office will not be ready until 2025, illustrating that major tech companies do not see Austin as a flash-in-the-pan opportunity to get in and get out, but a place to plant roots for years to come.
• Austin's population just passed that of San Jose.

"The pandemic has only accelerated the exodus away from Silicon Valley," Rastegar tells GlobeSt.com. "Long known to be the tech hub of the United States, Austin is now poised to take its place as more tech giants like Oracle, Apple, Dell, Amazon and of course, Tesla, continue to lay roots in the city. Many factors go into Austin's rise to the top, but chief among them are a much friendlier business environment, tax incentives and of course, a bigger pool of young professionals in their 20s and 30s who are taking advantage of a more affordable city. While Austin is perfect for the young professional, it's also proving to be a destination for high-net worth public figures, considering Elon Musk is now joining Joe Rogan, Matthew McConaughey and Sandra Bullock as Austinites."

Rastegar says Austin appeals to young renters with its lower cost of living, no state income tax, and retail and dining choices.