Slashdot: Study Finds The Least-Affordable City for Tech Workers: Silicon Valley's San Jose

Study Finds The Least-Affordable City for Tech Workers: Silicon Valley's San Jose
Published on January 31, 2021 at 01:04AM
The Bay Area Newsgroup reports: Despite high salaries and world-class amenities, San Jose is the least affordable place for tech workers to buy a home. [Alternate URL here] A new analysis by the American Enterprise Institute found the typical tech worker and his or her partner — with two incomes totaling $200,000 — can afford just 12 percent of the homes for sale in the San Jose metro area. The picture in San Francisco and the East Bay is nearly as bad, with just 21 percent of homes for sale fitting in the budget of an average tech couple. The high-hurdles to home ownership are fueling a Bay Area exodus that has contributed to the state's sluggish population growth in recent years, researchers say. Study author Ed Pinto, director of the AEI Housing Center, said tech workers can afford their pick of homes in almost every other U.S. city. "But in those places like San Jose, San Francisco and Los Angeles," he said, "that is not the case." The analysis gives another explanation for the Bay Area exodus. And it's not only workers who are leaving. Tech heavyweights HPE and Oracle have announced moves of their headquarters from Silicon Valley to Texas. Pinto believes the spread of remote work will only accelerate migration from the Bay Area. With new workplace flexibilities, tech workers have a choice between high-cost regions near their offices and low-cost regions with bigger houses and remote work. "Work from home is winning," he said.

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