Missouri Partnership CEO, Subash Alias, recently wrote an article for ValueWalk.com focused on the influx of companies and talent from California to the Midwest. Find the full article here.
With big names like Oracle, Palantir, and Hewlett Packard Enterprise leaving Silicon Valley for good, California’s status as America’s tech hub could be coming into question. The shift to remote work created a wealth of new possibilities; tech professionals are taking advantage of the new standard of flexible work by relocating to more affordable areas.
For these individuals and their companies, the Midwest’s low cost of living and affordable commercial real estate makes it the perfect spot to settle. The central location of the Midwest also makes it an ideal place for doing business in the U.S., and the average median home price across Nebraska, Missouri, Iowa, and Illinois was just $163,825 in 2021 — less than a third of what buyers might expect to pay in California and less than an eighth of the median home price in San Francisco.
Top Talent and Tech Companies Are Moving to The Midwest
The cost of starting a business or hiring top talent is quite affordable in the Midwest, which is why companies like Tallyfy and Scollar relocated. Top talent and tech companies leaving Silicon Valley in search of greener pastures should consider moving to the Midwest to take advantage of these qualities:
California’s corporate tax rate of 8.84% is more than double the 4% and 4.31% tax rates you’ll find in Missouri and North Dakota, respectively. From the moment companies move, their businesses could see improved operating margins. And without the fierce competition for top talent that takes place in Silicon Valley, they can pay far less for talent than they would in an expensive coastal city while still offering employees proportionally higher compensation and a better lifestyle.
Not only are houses more affordable in the Midwest, but they’re also bigger. The average home in San Francisco is 1,150 square feet, while the average home size in Kansas is 1,782 square feet. Additionally, eight of the 12 Midwestern states rank among the lowest in the nation for cost of living, according to 2021 data.
If you’re worried about missing out on the cultural aspects of California, think again. The Midwest boasts three of the top 10 zoos in the U.S. and noteworthy museums like the Art Institute of Chicago and the Rock & Roll Hall of Fame in Cleveland. No matter what you’re into, there’s something for everyone.
Check out the full article from Subash Alias here, and learn more about why companies and talent are finding success in Missouri.