RedfinPosted on 06/16/2015 10:45:14 AM PDT by SeekAndFind
A recent study by real-estate brokerage Redfin showed that more people are looking to move out of the Bay Area than ever before. Redfin CEO Glenn Kelman said that tech workers and their high salaries could be responsible for making Silicon Valley unaffordable.
A new Redfin study demonstrates a correlation between rising home prices and hiring by big tech companies.
They found that, as Amazon, Apple, Facebook, and Google have ramped up their hiring in various cities in the past year, the cost of homes in those cities has also gone up.
"For every 1% increase in technology workers, there’s a roughly half-percent increase in home prices above and beyond the national rate of appreciation," Kelman writes on the Redfin blog.
Nationally, home prices have risen by 6.5% in the last year, while tech companies as a whole have increased their workforce by 3%.
Seattle and Boston have seen the biggest increases in hiring by tech companies over the past year. In Seattle, home prices have risen 12.7% year-over-year, while hiring of tech workers has risen by 21%. Boston, however, seems to be an anomaly, as home prices have only risen 3% while hiring has increased by 18%.
(Excerpt) Read more at businessinsider.com ...
They appear to have re-discovered, supply and demand!
*shocking*
lol
I live in the Austin area and we are indeed seeing property values spiking.
It may be that these tech companies are choosing areas that are prospering. The increases may be happening without connection to the tech workers.
I find this research to be a bit oversimplified.
It's why people from other states are always begging people from CA to move there.
Look at Texas. They're constantly begging for CA conservatives people with money to move there.
lol...
If you're moving to Austin, keep your Prius off the 85mph toll road, thanks.
Yup.
When you can sell your dump in Mountain View for a million and a half (that you bought 10 years ago for 650K), and you still have 100,000 options on GOOG, you can just chuck it all and head for a nice town...pay cash and still have a few million to cruise on.
Ain’t capitalism grand.
Hello?
I thought "spreading the wealth" is a good thing.
The Progressives tell us so.
Unintended consequences?
Whazzat?
Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha !
The only time a road in Santa Clara County is that empty is about 2 AM in the morning...
And Jerry Brown would have a heart attack if you told him a freeway had a speed limit like that, even though it was common in the 60’s (even in California: I-10 from Blythe to Banning was 80 then).
That's a maximum, doofus...
My 12-year-old Prius can cruise at 70 all day long (the speed limit on some freeways in California.)
Ridiculous spiking at that, it is even infecting the outer counties.
My 27 mile commute to Fort Worth takes 30 minutes, though I’m going against traffic.
So, Redfin is bemoaning something that is only natural?
Silicon Valley is growing, and omg, my house has been re-assessed for more millage by the municipality!! Oh no!
Orange County did have the same ‘problem’, in the ‘80’s.
There are sections of the Greater San Diego Region that has gone through this.
With the advent of California towns embracing $15.00/hr burger flippers, They cannot stand the idea that the smarter people, working in the technology fields are already making that $15.00/hr. or more.
Silicon Valley owes a lot to federal contracts, too.
Doncha just hate wealth?
maximum posted, but most push 90.
I can’t speak for any other Sillycon valley refugees but I hope to move out of this state to a nice quiet conservative area and pay as little as damn possible for my new digs.
Tech is booming and so the traditional tech locations—in and outside of SV are doing well. Boston prices had already climbed quite a bit.
That’s not surprising.
In Denver, the “Tech Center” is located near Aurora, the less well off suburb. Since the freeway, route 25 is worthless, many tech workers are moving Aurora prices upward to avoid commuting hassles. Denver is booming again and it is not because of energy. They just added an airport to downtown rail connection for example.
As for California, proposition 13 shields real estate tax increases to 2.3 percent per year, regardless of actual appreciation. Yes, politicians want to end this tax shield for the greater good, which includes getting them re-elected.
“If you’re moving to Austin, keep your Prius off the 85mph toll road, thanks.”
Where did they get all of those cars from? Photoshopped? I’m no fan of Prius’s, but they’re welcome to ride that toll road any day - they won’t be blocking any traffic.
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