San Francisco Tech Firms See Workers Flee From $4,500 Rents

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  1. Responsible Allen Iverson

    Responsible Allen Iverson I attend practice Hall of Fame

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    San Francisco Tech Firms See Workers Flee From $4,500 Rents


    San Francisco Tech Firms See Workers Flee From $4,500 Rents
    Alison Vekshin alisonvekshin
    April 5, 2016 — 5:00 AM EDT

    [​IMG]
    Residential property in San Francisco.

    Photographer: Justin Sullivan/Getty Images
    When automation-software company executive David Nichols and his wife were preparing to start a family last year, he learned that the rent on his San Francisco office was set to jump 50 percent. So he picked up and moved to Portland, Oregon.

    The technology-jobs boom that’s made San Francisco one of the most expensive places to live in the U.S. is starting to taper off as it becomes too pricey for the workers. That’s led some companies to open offices in places like Seattle, Portland and Los Angeles to draw in-demand software engineers who want a similar quality of life at a lower price.

    “When you look elsewhere, the cost of living is totally different,” said Nichols, the 34-year-old chief executive officer of Automation Resources Group who is expecting a daughter this month. “We bought a beautiful Craftsman home in an awesome neighborhood and that just would not have been possible in San Francisco.”

    Uber Home
    California’s fourth-largest city has transformed into a tech startup and social-media mecca that’s home to Twitter Inc., Uber Technologies Inc. and Airbnb Inc. Their highly paid workers fill the city of more than 800,000, driving housing prices to levels out of reach for even those with six-figure salaries. San Francisco’s median home value was $1.1 million and the median monthly rent was $4,547 in February, the highest among the 50 largest U.S. cities, according to Zillow data.

    “We see re-locations out of San Francisco increasingly,” said Mehul Patel, CEO at Hired Inc., a San Francisco startup that connects job seekers to employers. “If you actually factor in cost of living, there are much better places to live.”

    In the last year, there’s been a constant flow of workers moving from San Francisco to Seattle, Denver, Austin and the Los Angeles area, Patel said. Many tech workers start out in San Francisco to boost salary and establish themselves before moving to more affordable markets, he added.

    “They’ve become tech hubs in their own right in a way that they weren’t three to five years ago,” he said. “It’s a lower cost of living, high quality of life and a great tech ecosystem there.”

    Growth Slowed
    Tech employment, which includes Internet, software-publishing and data-hosting companies, grew 5 percent in San Francisco in the year ending in February, down from a 10.3 percent increase the year before, according to Bureau of Labor Statistics data. In smaller markets, job growth is accelerating: 7.6 percent in Portland, 7.8 percent in Seattle and 4.6 percent in Los Angeles, the data show.

    [​IMG]
    Home prices in those cities are at least half of those in San Francisco, with median values at $351,700 in Portland, $536,700 in Seattle and $569,500 in Los Angeles, Zillow data show.

    A software engineer in Austin earning $110,000 would need to make $195,000 in San Francisco to maintain the same quality of life, according to a Hired report. Tech workers’ annual salaries average $118,243 in San Francisco and Silicon Valley, according to data from Dice.com, a technology-jobs website based in San Jose.

    “A lot of companies are opening shops outside of the Bay Area because of the candidate shortage for the skill set that they need,” said Megan Slabinski, a Seattle-based district president managing Northern California, Washington and Oregon at Robert Half Technology, a tech-staffing firm. “Looking at Seattle and Portland, you’ve got large tech hubs of candidates. There’s a great pool of talent.”

    Portland Draw
    Twitter has offices in Seattle, Los Angeles and Boulder, Colorado. Airbnb opened an office in Portland in December 2014.

    Technology-job postings for San Francisco and Silicon Valley listed on Dice.com declined 6 percent in the year ended in March, said Dice.com president Bob Melk. They’ve increased 38 percent in Seattle, 12 percent in Austin and 6 percent in Phoenix.

    More scrutiny and a drop in investments from venture capitalists following recent stock market declines also is spurring San Francisco startups to rein in hiring to boost profits.

    “The investment community has moved from the mindset of growth at all costs to wanting to see companies move quickly to profitability,” said Greg Schott, CEO of MuleSoft Inc., a San Francisco-based application network company. “They’re going to be less aggressive with how quickly they want to hire.”

    San Francisco’s tech firms are still growing. Salesforce.com Inc., the largest publicly traded San Francisco-based company in the sector by market capitalization, will increase its workforce by an estimated 24 percent this year, said Ana Recio, senior vice president of global recruiting.

    “The big picture is it’s still growing, albeit at a slower pace,” said Enrico Moretti, an economics professor at the University of California at Berkeley. “Prices are high because people can afford it and want to live here.”

    And people are still drawn to the area despite the costs, said Huey Lin, chief operating officer at Affirm Inc., a San Francisco-based lending startup.

    “While they may be potentially paying higher rents to live in smaller homes, this is a sacrifice they are willing to make to work in a highly innovative environment, be surrounded by nature and enjoy pristine weather year round,” she said.
     
  2. ORDER_66

    ORDER_66 Aaron Jackson Part 2 & Aetheon and K'nuba 2018

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    $4500 rent?!?!?:why::whoo::deadmanny:
     
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  3. Nerdy black guy

    Nerdy black guy Formerly known as SJUGRAD13. Supporter

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    I've never seen anything like this and I live in NYC. I hope San Fran has a more diversified economy outside of the Tech Sector, because God forbid another Tech bubble happens. :wow:
     
    Last edited: Apr 7, 2016
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  4. GinaThatAintNoDamnPuppy!

    GinaThatAintNoDamnPuppy! We'll always love you Lily

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    The Bay invented exhorbitant rents brehs. Don't forget it :ufdup:
     
  5. Kiyoshi-Dono

    Kiyoshi-Dono Veteran

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    My rent was 1,000 in 05..
    Since I moved back to Houston, I looked up how much that same apt was and its 3200 a month:stopitslime:
    I want to move back but more then likely Sac town will be the way to go but my pops says rents going up too..
    :yeshrug:
     
  6. GinaThatAintNoDamnPuppy!

    GinaThatAintNoDamnPuppy! We'll always love you Lily

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    :gladbron: Its about to be the 80s again. nikkas getin Shanghai'd and all that :krs:
     
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  7. itsyoung!!

    itsyoung!! Your Vegas Connect! (retired from Vegas)

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    People have to move to fukking LA to save money :bryan: that sounds ridiculous just typing it out :bryan:

    shyts getting out of control in SF quick and has been for some time, but lately its just too much. Even the food carts outside the club that sell bacon wrapped hotdogs tryna play talkin bout $5 aint enough for a soda and hot dog :stopitslime:

    $4500 for rent.. keep in mind, taxes are insane in California/Bay Area. You'd have to make $7000 or so a month just to PAY rent. Thats not including utilities, car, gas, parking, food, living, etc.

    even the suburbs around the bay area are getting too expensive :mjcry:

    Sacramento is way better living (if you dont mind being bored) but unfortunately my job/career is set up in the bay :francis:


    my first apartment I got was $1050 a month in 2008. Considered a luxury apartment at the time. 2 bed room apartment there was $1150 ($100 more)

    Same 1 bed room apartment now is $1500-1600 a month now depending on side of the apartment you live :francis: the 2 bed room is $1850+ :francis:

    How the same apartment jump up $400-700+ a month with nothing new in it :francis:

    and now $1050 a month will pretty much put you in the projects here :francis:

    this shyt boutta crash again like 2008 im sure of it :francis: theirs no way this is sustainable
     
    Last edited: Apr 5, 2016
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  8. Bugatti Biceps

    Bugatti Biceps Supreme Hacker

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    Look at rents in DUMBO, Williamsburg, West Village, etc.
     
  9. EducatedBrothaFromTheBank

    EducatedBrothaFromTheBank Veteran Hall of Shame

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    we invented high rent prices :blessed:
     
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  10. Ill Clinton

    Ill Clinton No Funk-Flex Zone Supporter

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    Make 6 figures and be broke brehs :mjlol:

    Median house price is a millie :mjcry:

    How sway?
     
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  11. Nerdy black guy

    Nerdy black guy Formerly known as SJUGRAD13. Supporter

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    They're not 4500 a month.

    Williamsburg rents usually goes between 2500-3200. Are there places in Williamsburg that could match San Fran? Yes, but that's such a anomaly that it doesn't matter. This article makes it look like this is more of the Norm.

    West village is cheaper than Williamsburg.!
     
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  12. Kiyoshi-Dono

    Kiyoshi-Dono Veteran

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    My apt was on 43rd and Vicente and just looking around at prices out of curiosity, in laws are going for 1200-1500. The fukk:russ:
    I don't have a problem with Sactown being that Houston is a similar lay out/weather..
    So we will see but I be damn if I move to Stockton or Modesto:hamster::francis:
     
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  13. SadimirPutin

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    well no fukking kidding

    The large salaries that people keep touting about california and the tech sector always fail to mention how much of that salary is eaten up in rent and cost of living

    You are being paid more to live at a lower standard of living than large swaths of the country...

    And its not like your income is going to keep trending upward......lots of college kids who go to work out there are very lucky if they end up at a business which goes on to become successful and they get some stock option

    but most of those startups fail......and they can find their income stagnating after 5 years

    this is the age of the internet.....why the fukk do I need to be in SF when I can perform my duties in Miami, Texas, Carolinas, ...fukk even Iowa

    It has to be soulsucking to pay 4500 in rent......and you aint even put food in the fridge yet
     
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  14. lowkey0z

    lowkey0z Veteran

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    $4500..

    [​IMG]
     
  15. ch15x

    ch15x Mountaineer

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    :scust:
     
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