Charted: Annual Net Migration of Businesses in the U.S. (1991-2021)

U.S. Companies Have Been Moving South Since the 1990s

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Between 2018 and 2023, seven Fortune 500 companies moved their headquarters from California to Texas.

This came on the back of pandemic-era restrictions that had some companies wanting to move to states with looser restrictions. The sudden rise of remote work also made quick reorganization possible.

However, American businesses have been moving south consistently since the 1990s.

This chart tracks the net migration of U.S. firms by region from 1994–2021, according to data published by the Bureau of Labor Statistics in 2024.

The Business Case for the South

In 1994 the South gained 152 firms from the rest of the country, after accounting for those that left the region. Nearly two decades later in 2021, it gained more than 700 companies.

So why do companies keep moving south?

America’s coastal economies have long been epicenters of economic might. But along with growth came rising costs and regulations.

Meanwhile in a bid to boost economic growth, southern states prioritized business-friendly environments. Along with eliminating or reducing taxes (Texas has no corporate levies), they also pushed out incentives trying to attract new companies.

But the pandemic supercharged this ongoing trend. The South gained nearly 1,000 firms from the rest of the country in two years.

Also worth noting, companies are not the only ones moving south. Even Americans are migrating out of the coasts and moving to Texas, Florida, and North Carolina. In fact, southern cities have registered the highest population growth in the last decade.

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