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During the pandemic, Austin emerged as a magnet for tech workers escaping high living costs and stringent Covid regulations found in places like California. The city's appeal lay in its vibrant lifestyle, lower cost of living, mild regulatory environment, favorable tax climate (with no income tax), and affordability compared to the Bay Area. For many, it seemed like a fantastic opportunity: median home prices surged from $325,000 in January 2020 to over $550,000 by mid-2022, marking a staggering 70% increase.
Tech firms, including Tesla, Oracle, and Apple, flocked to Austin, investing heavily and expanding operations. Venture capitalists were also generous, with Austin-based startups securing nearly $5 billion in 2021—a stunning 200% increase compared to 2019.