Silicon Valley: The high cost of the Bay Area is pushing some of its residents out
The Bay Area experienced positive net migration for roughly 5 consecutive years until 2016 at which point net migration became stagnant, but as the intensive and supply constrained market of Bay Area continues, residents are becoming more receptive to potentially relocating out of the state all together forcing net migration to take it’s first dip since 2010.
- 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