For the first time ever, more people are leaving San Francisco’s bay area than are moving in. In fact, the San Francisco bay area is now the number one spot in the country for out-migration. What’s to blame? high housing costs and a slew of other factors.
There is a growing trend in American moving behavior that isn’t difficult to see. People are fleeing from high-tax states in droves. Far from being immune to this trend, California may now be the worst offender.
California’s High Housing Costs
California’s state taxes are high, there’s no doubt about that. However, the bigger problem may be the cost of housing in the Golden State which has been skyrocketing in recent years.
“You can’t even contemplate getting into the housing market here. And I don’t mean just service workers, I mean highly skilled professionals. The tech elite are having a hard time affording reasonable housing in Silicon Valley. So this is difficult, this makes it very difficult for employers trying to recruit.” – Russell Hancock, Joint Venture Silicon Valley
California, and specifically the bay area have found themselves in the middle of a real estate crisis. Home prices are going up, wages aren’t following, and even wealthier residents are now qualifying for home subsidies.
The high housing costs have gotten so bad that some residents aren’t even bothering to try and find a home. RV towns are cropping up all over California’s bay area, full of residents who can’t afford more traditional housing.
And why should they try? San Francisco’s home prices are insane. Like this listing for a $800,000 home. The only catch? It was completely destroyed by fire. Still, the realtor thinks this property is a steal at only $800,000.
Mass Exodus from the Bay
Given the high housing costs, it’s no surprise that 40% of bay area residents are considering leaving. Popular destinations for outbound bay area residents include: Sacramento (where housing is more affordable), Austin, and Portland.
High housing costs can put a strain on anyone’s financial situation. That’s why City vs City takes this into account when calculating cost of living.
Our app factors in your after-tax income, expenses (including housing), major state and local taxes, and more. We examine cost at the zip-code level to deliver an accurate portrayal of your current cost of living.
Armed with that information, we then compare your costs with another city of your choosing to show you the difference.
If the bay area’s high housing costs have you considering moving to a more affordable city, download the City vs City App today and leave your heart (and your housing cost headache) in San Francisco.