Dallas-Fort Worth has become a prominent financial hub in a defining shift, securing the nation's second spot in finance jobs, just behind New York. A recent Bloomberg report highlights this Texas metropolitan area's leap over Chicago and Los Angeles, marking a significant change from previous years where Dallas trailed these cities.
This transformation is underscored by over 380,000 individuals now working in Dallas's financial sector, a testament to the city's expanding influence in finance. The Bureau of Labor Statistics data bolsters this, illustrating the city's impressive growth in this sector since the onset of the pandemic.
Dallas Financial Hub Booms as Wall Street Banks Expand Operations
2022 has been a landmark year for Dallas, as it became the chosen location for new campuses of three central Wall Street banks. This move indicates a strong belief in the city's potential and growth trajectory. The presence of these financial giants further strengthens Dallas's position as a hub for financial professionals, now outnumbering those in Chicago and Los Angeles.
This growth is not confined to big banks. A wave of asset management firms lured by the influx of wealth and demographic shifts has established their presence in Dallas. Factors like affordable housing and the absence of state income tax have made the city an attractive destination.
Notably, Fisher Investments shifted its base to Plano, a Dallas suburb, from Washington state, joining earlier arrivals like Charles Schwab and Canyon Partners.
Mayor Eric Johnson aptly summarized the city's burgeoning financial scene at the groundbreaking of Goldman Sachs Group Inc.'s new campus in Victory Park: "Right now, the smart money is on Dallas."
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Dallas: New Financial Hub Attracts Big Firms
Dallas's ascent as a financial center is further evident in its real estate market. Approximately 28 million square feet of office space in the Dallas area is now occupied by financial firms, placing the city right behind New York in this aspect.
Moreover, the city has been demonstrating robust economic performance. A report on Assistant Recruitment highlighted a striking 50% net profit at Dallas's corporate headquarters last year. This impressive feat ranks Texas second in the nation for net income at corporate headquarters, only surpassed by Florida.
The trend of major corporations moving to Texas further exemplifies Dallas's attractiveness as a financial hub. Notable relocations include Hewlett Packard Enterprise from San Jose, California, to Houston and Charles Schwab Corp.'s move from San Francisco to Westlake, Texas, in 2020.
However, despite the sector's growth, financial workers in Dallas face a disparity in earnings compared to New York. On average, they earn 30 percent less, with salaries averaging around $102,000 annually. Bloomberg attributes this to the predominant job types in Texas, centered around engineering, customer service, and loan processing, which differ from those in New York.
Thus, Dallas's emergence as a financial hub represents a significant shift in the U.S. financial landscape. Its rapid growth in finance jobs, attraction of major financial firms, and economic performance paint a picture of a city on the rise, redefining its role in the national and global financial sectors.
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