Texas has the best business climate in the country, according to Site Selection magazine, which covers corporate real estate strategy and economic development.
Texas came in first in the publication’s annual ranking of state business climates. Criteria for the rankings include a survey of corporate real estate executives and site selectors, CNBC’s list of top states for business (in which Texas ranked third), investment data from Site Selection’s publisher Conway Data, and criteria like taxation and infrastructure.
States are given points based on the criteria. Texas earned 574 points, six more than runner-up Georgia. North Carolina, Virginia and Florida rounded out the rankings’ top five.
“The blend of factors making Texas and our other leading states attractive for companies large and small starts with supportive policies from the governor’s office, counties, cities and higher education institutions,” Site Selection editor in chief Adam Bruns said in a press release. “As the companies and talent keep flowing to these states, they create a positive feedback loop backed by attention to infrastructure and workforce development.”
Site Selection also surveyed corporate site selectors on what location factors were most important, which revealed that reliability of utilities, workforce skills and real estate prices were front of mind for selectors in 2024. This is a departure from 2023, when ease of permitting and regulatory procedures were rated the most important criterion.
“Texas is universally known as enterprise friendly,” Raymond Garfield, chairman and co-founder of real estate developer Garfield Public/Private LLC told Site Selection. “Texas has outstanding infrastructure including state-of-the-art telecommunications, thoroughfares, utilities and airports, most notably the second busiest airport in the nation at Dallas/Fort Worth International Airport.”
Texas came first in the business climate rankings last year as well, the first time in over a decade that the Lone Star State claimed first place. Earlier this year, Site Selection awarded Texas the Governor’s Cup for the 12th year in a row for building the most new corporate facilities and expanding current ones.
The Site Selection honors are more voices in the chorus praising Texas’ business climate, as the state pursues business-friendly policies like the creation of business courts in addition to existing draws like the lack of state income tax.
