Technology jobs caused a boom in San Francisco’s market, but that could change as prices rise, and workers can no longer afford to live in one of the most expensive cities in the U.S., according to an article by Alison Vekshin for Bloomberg Technology.
Many companies have relocated to Seattle, Portland and Los Angeles to draw in workers as more workers leave the city, according to the article.
From the article:
California’s fourth-largest city has transformed into a tech startup and social-media mecca that’s home to Twitter Inc., Uber Technologies Inc. and Airbnb Inc. Their highly paid workers fill the city of more than 800,000, driving housing prices to levels out of reach for even those with six-figure salaries. San Francisco’s median home value was $1.1 million and the median monthly rent was $4,547 in February, the highest among the 50 largest U.S. cities, according to Zillow data.
“We see re-locations out of San Francisco increasingly,” said Mehul Patel, CEO at Hired Inc., a San Francisco startup that connects job seekers to employers. “If you actually factor in cost of living, there are much better places to live.”
In the last year, there’s been a constant flow of workers moving from San Francisco to Seattle, Denver, Austin and the Los Angeles area, Patel said. Many tech workers start out in San Francisco to boost salary and establish themselves before moving to more affordable markets, he added.
San Francisco is known for its high pricing, in 2015, even a house where a mummified body was found sold for $1.56 million, about $500,000 above asking price.
In February, a report by Fitch Ratings suggested that San Francisco had even entered into a housing bubble. New programs were even created to help buyers fund 100% of their homes on loans of up to $2 million.