Austin

Austin exists because a university exists. When the Texas legislature established the University of Texas in 1881—doors opening in 1883—they created a keystone species that would define the city's ecosystem for the next century and a half. Every subsequent wave of growth traces back to that founding decision.

The tech ecosystem emerged through a predictable succession pattern. IBM arrived in 1967, drawn by UT's engineering talent and low costs. Texas Instruments followed in 1969. In 1984, a UT student named Michael Dell started building computers in his dorm room; Dell Technologies would become the catalyst for an entire supplier ecosystem. The Microelectronics and Computer Technology Corporation (MCC) chose Austin for its research labs in the early 1980s. Sematech, the semiconductor consortium, arrived in 1988, pulling AMD, Motorola, and eventually Samsung into the region.

The pattern accelerated through positive feedback: more tech companies attracted more engineers attracted more venture capital attracted more startups. Austin now hosts over 20 unicorn startups. Sixteen percent of all jobs are tech-related—nearly double the national rate. Apple, Meta, Oracle, and Tesla all maintain major campuses. Samsung's $26.8 billion economic impact in Central Texas will grow when its $17 billion Taylor fabrication plant begins production in 2025. Tesla's GigaTexas supercharged advanced manufacturing across Southeast Austin.

The result: Austin topped the 2025 list of America's best large cities for economic growth. Regional GDP reached $248 billion in 2023. Median income rose 33% over five years. Population hit 2.5 million as the city reclaimed its position as Texas's fourth-largest, overtaking Fort Worth by 34,000 people.

But success creates its own threats. The affordability that once distinguished Austin from Silicon Valley has eroded—the city has lost that competitive edge. Infrastructure strains under growth. By 2026, Austin faces the classic dilemma of ecological succession: the conditions that enabled growth may be destroyed by that growth. Whether the city can evolve new niches while preserving what made it attractive will determine if Silicon Hills becomes the next Silicon Valley—or the next cautionary tale.