The words “tech market,” “startup culture,” or “unaffordable home prices” probably bring to mind San Francisco, the home of tech giants or startups such as Google, Facebook or Lyft; however, a new city might be challenging San Francisco for its title.
Dallas rose twelve spots since 2016 to rank seventh in the “Innovation that Matters” report released by the U.S. Chamber of Commerce Foundation, Free Enterprise, C_TEC and 1776.
The index compares key statistics in 25 cities to show how well they are turning capital into successful tech industries, with a focus on next-wave startups, commonly viewed as technology-driven companies developing innovative solutions to complex challenges in different industries.
The report explained the San Francisco Bay area holds the clear lead in total startup activity, however Dallas tied for the top spot in startup culture. Dallas’ share of startups in sectors such as health, energy, education and smart cities surged 157% from last year.
“These rankings represent far more than just bragging rights,” 1776 co-founder and CEO Evan Burfield said.
“Investments in next-wave industries have the potential to drastically change the landscape of entrepreneurship in the United States,” Burfield added. “Communities, companies and local governments now face the challenge of nurturing and supporting these young businesses, developing them into permanent contributors to city economies.”
In compiling the report, researchers focused on an analysis based on talent, capital, specialization, density, connectivity, and cultural statistics, as well as a survey of more than 413 startup leaders.
“This year’s research revealed a striking sense of disengagement between startups, industry leaders, and civic institutions,” said J.D. Harrison, U.S. Chamber of Commerce senior director of strategic communications. “In the digital economy, cities that build strong connections between local entrepreneurs and key stakeholders will be the ones that develop the most vibrant technology ecosystems—and they will be the ones best positioned to lead in the decades ahead.”
Does this takeoff in startups mean Dallas will also follow in San Francisco’s footsteps when it comes to home prices? Possibly. Last year, a study from Nationwide Mutual Insurance Company ranked Dallas-Plano-Irving, Texas in its bottom 10 unhealthy markets in terms of housing affordability.
What’s more, the Dallas area continually appears in the lists of the nation’s hottest home buying markets.