Silicon Valley: The high cost of the Bay Area is pushing some of its residents out
With growth in e-commerce sales expected to double over the next ten years, the competition for consumers continues to heat up. And now, same-day delivery expectations have forced many companies to consider a number of different urban infill options in order to reach consumers in and around major U.S. cities.
- High-paying tech jobs continue to attract a talented workforce to the Bay Area. On the other hand, a rising cost of living continues to push people out of the area forcing marginal negative net migration.
- A variety of factors contribute to why people migrate out of the states they reside in, one of the largest drivers of that decision can be attributed to costs. Of the 9 counties that surround the Bay, 4 of them account for the top 5 counties with the highest median home value in the nation.
- Although the Bay Area as a whole experienced slight negative net migration and with unemployment at historical all time lows both nationally and locally, we can further expect the labor pool to tighten within the state of California making competition amongst companies for top tier talent that much greater.
Source: JLL Research