While the pandemic spawned widespread uncertainty and major adjustments across industries and communities, it paradoxically fostered growth, innovation, and the strengthening of regional business ecosystems, particularly in New Jersey.
For the past few years, I’ve been maintaining that while we benefited from the pandemic-induced exodus of talent from NYC, I was concerned it would be short lived and forecasted a two-year window before many relocated to lower cost states that also offered warmer weather. Fortunately, that fear has mostly been unrealized.
While some people did move to the South in search of cheaper housing and tax advantages, the larger trend has been the opposite. New Jersey’s proximity to Manhattan and Philadelphia, combined with significant investments in innovation and infrastructure, has allowed it to not only retain most of its workforce but also experience a resurgence in the tech and startup sectors.
The Quality-of-Life Advantage
A primary concern for many individuals during the pandemic was how the shift to remote work and virtual meetings would impact the balance between personal and professional life.
Although workers found that while working from home offered flexibility, it also created new challenges in terms of maintaining productivity and well-being. However, for those who found the right balance, working remotely afforded opportunities to improve their quality of life—particularly for people living in states like New Jersey, which offers a blend of suburban tranquility with access to bustling urban hubs.
People also increasingly sought communities where their lifestyles and values aligned with their aspirations. A desire for a higher quality of life is a key reason innovators and business leaders have chosen to remain in or move to New Jersey, despite the higher costs of living. The state’s excellent K-12 schools, top-tier educational institutions, superb health care facilities, and proximity to cultural and professional opportunities have allowed residents to thrive.
Government leadership and the Rise of Innovation
Another unseen benefit of the pandemic: the surge of new programs and investments aimed at fostering innovation, given the influx of federal funding and strong leadership at the state level. Under Governor Phil Murphy, the state has seen a tremendous boost in support for emerging technologies and industries. The NJ Economic Development Authority (NJEDA) has rolled out various initiatives designed to help businesses launch and scale, particularly in tech, biotech, and other high-growth sectors.
One key player in this revitalization has been CoreWeave, an AI cloud infrastructure company (AI hyperscaler) that is rapidly becoming a leader in its field. This startup, which has benefited from both public and private sector support, has helped put New Jersey on the map as a growing hub for AI development and innovation.
Innovation hubs are also popping up across New Jersey (eight thus far with at least a couple more planned), including Princeton’s newly established AI-focused center, which is attracting top-tier talent from around the world. These Strategic Innovation Centers and related initiatives indicate that New Jersey is not only holding its ground as a business-friendly state, but that it is positioning itself as a critical player in the future of technology.
Natural Disasters and Rising Costs in Competing States
While some regions across the US have seen an influx of people seeking to escape excessive costs or unfavorable policies, natural disasters are starting to dissuade individuals and companies from relocating to more affordable southern states. Hurricanes have become more frequent and severe, stretching into North Carolina and other parts of the Southeast. The rising threat of unpredictable weather events, combined with associated increasing insurance premiums in places like Florida, makes relocation less appealing for business owners and families alike.
New Jersey is better positioned on this point. It is less vulnerable to the extreme weather patterns that have been increasingly common in other parts of the country, not only making it attractive to individuals seeking a better quality of life, but also to companies that need predictability in their operations and business continuity plans.
Abortion Laws and the Changing Political Climate
Abortion is another critical element influencing relocation decisions. Restrictive abortion laws in states like Texas and Florida have become a significant concern for individuals, particularly women, who are considering where to live and work. These out-of-state laws, combined with increasing political polarization, have prompted people to look to states with more progressive stances on reproductive rights.
New Jersey has long been known for its pro-choice policies and progressive leadership. This commitment to protecting women’s rights is often an important consideration for those seeking a supportive and inclusive environment in which to live and work.
A Haven for Corporations and Innovators
As the potential for political division increases in various regions of the country, our state’s stable political environment positions it as a haven for domestic and international corporations. With its strong infrastructure, skilled workforce, and favorable business climate, the state is poised to attract companies that are seeking a secure base from which to operate. Whether it’s multinational corporations or fast-growing startups, New Jersey’s strategic location and policies continue to make it an appealing destination for innovation. Choose New Jersey has driven this point home and has done an excellent job in attracting companies from across the country and globe.
Immigrant friendly
Moreover, the state’s immigrant-friendly policies and welcoming culture provide additional support for New Jersey’s reputation as a place of opportunity. Despite the rhetoric from some of our political leaders, New Jersey remains a beacon of hope for highly skilled professionals from around the globe. Its diverse and inclusive communities have long attracted talented individuals who contribute to the state’s innovation-driven economy. I, along with my fellow business and community leaders, are committed to embracing and supporting all newcomers.
New Jersey has it all in a post-pandemic era: The state’s investments in technology, its quality-of-life advantages, its progressive policies, and its welcoming stance toward immigrants all combine to make New Jersey a powerful force. While challenges remain, the opportunities for growth, innovation, and stability are clearly abundant, marking our state as an ideal place to live and work in an increasingly uncertain world.
James Barrood is the founder and CEO of Innovation+ | Innovate 100.
