Buda, Texas, is emerging as a magnet for aerospace and defense companies, offering an alternative to the higher costs and larger spaces typical of Austin, according to the latest episode of The Building Texas Show. The episode, titled "The Aerospace & Defense Companies Picking Buda Over Austin," was published July 13, 2026, and features host Justin McKenzie in conversation 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 discussion challenges the prevailing narrative that Central Texas aerospace and defense growth is an Austin story. Storm recounts a recent caller telling her, "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." The episode argues that the real footprint is landing in smaller I-35 corridor cities that offer right-sized space, workforce access, and lower rent. Aerospace and defense firms are choosing Buda over Austin, Round Rock, and Pflugerville, often seeking 10,000 to 20,000 square foot spaces rather than greenfield developments.
Buda has built significant momentum in under a year. The Hive incubator moved 60 entrepreneurs through four cohorts in its first year, spanning industries from salons to AI apps to drones. A new retail incubator is opening in Buda's restored 1884 train depot on Main Street. Additionally, the Hays CISD teacher externship program placed 17 educators inside local businesses this summer, strengthening the workforce pipeline.
Storm, recognized recently by the International Economic Development Council at the Library of Congress, is candid about the community's positioning against its larger neighbor. The Buda EDC uses rebates rather than abatements, paying incentives only after jobs are delivered. Storm frames this as a low-risk taxpayer investment tied to a single mandate: economic prosperity. Davidson, who has doubled Chamber membership in two years, describes her role bluntly: "I want to be 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 unpacked the origin of 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 implications of this shift are significant for the region. As aerospace and defense firms seek alternatives to Austin's high costs, Buda and similar cities stand to capture economic growth, create jobs, and foster innovation. The focus on right-sized spaces and incentive structures that prioritize job creation could serve as a model for other communities. For readers, this underscores the importance of looking beyond major metropolitan areas for business opportunities and economic development.
The Building Texas Show, hosted by Justin McKenzie, spotlights the founders, civic leaders, and operators shaping the next generation of Texas communities and companies. New episodes release weekly across YouTube, Facebook, Instagram, and LinkedIn. This episode is available now wherever podcasts are heard.
