The region’s reputation as friendly to businesses has also played a role in its rise. Seven of the top 10 states in CNBC’s America’s Top States for Business in 2023 were in the Sun Belt.

Although there are some notable exceptions, such as California with its upcoming hike on fast-food wages, states such as Texas and Florida have touted their lower taxes and lax regulation to lure companies. For two consecutive years, Texas has been home to the most Fortune 500 companies, supplanting California and New York.