Buda, Texas Emerges as Aerospace and Defense Magnet South of Austin

A new episode of The Building Texas Show reveals that aerospace and defense companies are choosing Buda over Austin due to right-sized spaces, workforce access, and lower rent, challenging the narrative that Central Texas growth is centered on Austin.

Chicago Metrowire Staff
Business
Buda, Texas Emerges as Aerospace and Defense Magnet South of Austin

Buda, Texas, a city located south of Austin, is rapidly becoming a hub for aerospace and defense companies, challenging the prevailing narrative that such growth is centered on Austin. In the latest episode of The Building Texas Show, host Justin McKenzie discusses this trend with Jennifer Storm, CEO of the Buda Economic Development Corporation, and Monica Davidson, CEO of the Greater Buda Chamber of Commerce and a Buda City Council member. The episode, published July 13, 2026, highlights how Buda and other I-35 corridor cities are attracting firms that seek 10,000 to 20,000 square foot spaces rather than large greenfield developments.

Storm notes that the Buda EDC uses rebates rather than abatements, paying incentives only after jobs are delivered, which she describes as a low-risk taxpayer investment. This approach has helped Buda build momentum quickly. The Hive incubator, for instance, moved 60 entrepreneurs through four cohorts in its first year, spanning industries from salons to AI apps to drones. Additionally, a new retail incubator is opening in Buda's restored 1884 train depot on Main Street, and the Hays CISD teacher externship program placed 17 educators inside local businesses this summer.

Davidson, who has doubled Chamber membership in two years, describes her role as being "where business begins in Buda." The Greater Buda Chamber rebrand widened its tent to include South Austin, Mustang Ridge, Luling, and Lockhart businesses, while partnering with anchors like US Foods, Texas Lehigh, and Jardine's. The pair also discuss Buda's trademarked title as the Wiener Dog Capital of Texas, a Lions Club idea from the 1980s that is now the city's largest annual event.

The episode underscores that aerospace and defense growth in Central Texas is not exclusively an Austin story. Storm recounts a recent caller stating, "People are saying aerospace and defense is coming to Austin, but that's not true. It's coming to Buda and Bastrop and Lockhart and Kyle and San Marcos." This shift highlights how smaller cities can offer right-sized space, workforce access, and lower rent, making them attractive alternatives for companies seeking to expand.

The Building Texas Show, hosted by Justin McKenzie, spotlights founders, civic leaders, and operators shaping Texas communities. New episodes release weekly across YouTube, Facebook, Instagram, and LinkedIn, and this episode is available now wherever podcasts are heard.

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