Is Austin really the best city in Texas? Don't be so sure!
I just read an article on Monster.com (see the link at the bottom) that rated the best cities right now for job growth. Many of those cities are in Texas, and Austin is ranked #1 on the list, as well as on many other similar lists. The reasons cited are many, including a favorable business climate, technology initiatives, and collaboration between businesses and UT (the University of Texas).
Overall, Texas is the only state nationwide experiencing any job growth. Why? It is a conservative, fiscally responsible state, with a diversified economy friendly to business.
But everybody wants to live in Austin, because aesthetically, it is a very pretty city. Nestled in the Hill Country of central Texas, Austin offers hills, trees, lakes, deer, and sweeping views of beautiful scenery.
I lived in Austin for nearly 12 years, from 1996 to 2008. Today I live in Houston. When people in other parts of Texas think about Austin, the first thing they ask me is "oh it's so pretty, how could you ever leave?" But that is only a superficial perspective, and I'll tell you why - as well as why it actually may not be the best city in the nation in which to live and work - all based on firsthand knowledge and experience.
With a population of just under 1 million, not counting the greater Austin area, Austin qualifies as a medium sized city. It also happens to be the capital of Texas. Like most state capitals, Austin is not a major city. Unlike Houston, there is no real industry in Austin; the three biggest employers are:1) The State of Texas, 2) The University of Texas, and 3) High-Tech, which includes Silicon Valley firms and Internet start-up companies.
In Austin, wages are low, and prices are high. Why is this? Well, first and foremost, the State is one of the largest employers, and historically, the State is a low-pay entity. Second, Austin is not only the capital of Texas, it is also a college town, and thus the market is flooded with highly educated college graduates willing to work for anything just to stay in Austin. Forget about negotiating a job offer because unless you take the salary you are offered, most likely there are at least 10 or more highly qualified candidates lined up right behind you who are willing to take the same job.
These two factors combine to suppress wages across the board. Why live somewhere where you can't earn what you are truly worth? On top of that, the State caps salaries (as does any government job, because of the pay scale), and the employers in the high-tech sector (Dell, FreeScale, AMD, etc.) are continuously laying off and downsizing so your job is always in jeopardy.
In the early 1990s, a large wave of high-tech firms from Silicon Valley opened manufacturing facilities in Austin, which contributed to job growth. People moving from out of state laughed at how inexpensive it was to purchase a house compared to California, and prices went up. Today, real-estate in Austin is overpriced. On top of that, it is the most expensive city in Texas as far as cost of living. Everything (restaurants, groceries, gasoline, dry cleaning, you name it) costs more, and it adds up. Property taxes are higher too. So over time, Austin has turned into a city of low pay and high prices.
People scoff in disbelief when I say it, but Austin is still a small town in a lot of ways. A lot of people who live there are originally from smaller towns in other parts of Texas: primarily Del Rio, Victoria, Corpus Christi, and Wichita Falls, so to these transplants, Austin is a "big city" because they've never lived anywhere else. Furthermore, Austinites don't like outsiders, and unless you are a member of a certain "group" - either wealthy, a graduate of UT, politically connected, or a native Austinite, you will run into a lot of closed doors. Don't move there if you are looking to build or advance in a career because there is only so far you can go.
Take my brother-in-law for instance. He has lived in Austin for over 10 years and worked as vice-president of a non-profit organization. He applied for a job as the executive director of another similar organization, but didn't get the job. Instead, it was offered to a local politician's sister. So even though my brother-in-law was the most qualified candidate, he wasn't the most politically connected candidate.
Another friend of mine's brother moved to Austin from Oklahoma City. A lawyer, he struggled to get his private practice going. An outsider, he could not get any business in Austin, and ended up moving back to Oklahoma. These are fairly typical examples, and it just goes to show that people and place matter.
As a city, Houston has a lot to offer. First off, people are a lot more open and accepting of newcomers. It is much easier to get established and make friends and/or business connections. Second, there is a lot more to do, in terms of entertainment, and the cultural scene is unsurpassed as far as live theater and a world class Museum of Fine Arts. Houston is also a city of high paying jobs and a lower cost of living - especially when it comes to real-estate - so your money goes a lot further than in Austin.
So place does Matter. Particularly when you are starting a business. Austin vs. Houston? I'll take Houston any day!
Karen Terry is a 7th generation Texan. For the 12 years she lived in Austin, she was self-employed in the field of Geographic Information Systems (GIS), where she taught GIS classes for the State of Texas as a top-rated software instructor. Today she is a Certified Life Coach who specializes in helping other women start their own businesses. She is also the award-winning author of Full-Time Woman, Part-Time Career.
Heroes: Leonardo di Vinci, Thomas Jefferson, Sam Houston, Lance Armstrong
