Residents migrating into the Bay Area are making more than residents moving out
High-paying tech jobs continue to attract a talented workforce to the Bay Area, supporting in-migration of high-wage earners
May 29, 2019
- High-paying tech jobs continue to attract a talented workforce to the Bay Area, supporting in-migration of high-wage earners. On the other hand, a rising cost of living continues to push people out of the area. Households with incomes of nearly $100,000 struggle to afford the cost of living in the Bay Area as housing prices and rent remains high.
- From 2010 to 2016, about half of the people moving into the Bay Area made an annual household income of at least $100,000, while only 20% of in-migrants had an annual household income over $200,000.
- Nearly 818,000 out-migrants with an income of less that $100,000 moved out of the Bay Area in the same time period.
- A significant number of out-migrants are moving to Sacramento (192,293), Los Angeles (187,676) and Modesto (87,969), while many in-migrants are coming from Los Angeles (235,052), Sacramento (142,260) and New York (81,896).
- As high-income in-migrants are able to absorb elevated housing costs, home prices and rents are anticipated to remain high if the discrepancy between in- and out-migrants continues.
Sources: Terner Center, JLL Research