Upstate United: Financial Sector Growth in Dallas Outpacing New York City

August 15th, 2024

A statement from Justin Wilcox, Executive Director of Upstate United.

“From Wall Street to…Y’all Street? The latest moniker for the major shifts happening throughout the financial sector is proving to be a possibility in the future as growth across the industry in Texas outpaces New York by an alarming percentage. A recent article in the Wall Street Journal highlights data from the Bureau of Labor Statistics that show investment banking and securities employment in Texas has outpaced New York by 84% over the past two decades. Texas has also led the nation in this area of growth since 2019.

“While New York remains the world’s financial hub, the growth in Dallas should certainly give our representatives pause on the changes happening throughout the industry and what they mean for our state’s overall economic well-being. Last year, Bloomberg News calculated that 158 companies managing $993 billion in assets moved out of New York State to the sunbelt over the course of recent years. Within the past 18 months, Wells Fargo & Co., Bank of America, and Goldman Sachs, three of Wall Street’s largest financial firms, have broken ground throughout Northern Texas.

“The top reasons for this significant movement across these finance-related industries are quite simple: lower taxes and lower housing. New York is chronically the most expensive place to live and do business, putting us at a significant disadvantage when it comes to competing with more affordable and welcoming states. As places like Dallas continue to develop sectors our state has depended on for decades, policymakers must take the steps necessary to ensure that New York does not fall behind.”

###