Almost every major metropolitan area in the US saw an exodus of residents in 2020, but no more than the notoriously expensive San Francisco, according to a new study.
In the most expensive city in the United States, at least twice as many residents traveled to other places in the past year as in 2019, around 18 per 1,000 residents. CBRE Group, a commercial real estate company, conducted its migration analysis based on data from the US Postal Service.
Much of the outgoing residents were young, affluent workers, Eric Willet, CBRE research director in Los Angeles, told Newsweek. The high-end rental housing markets had the most vacancies and fell overall.
“We can assume that a large chunk of those were technicians because they’re a large segment of the economy,” Willet said. “If we look at the data, most of the residents who moved out of the Bay Area moved nearby. Very few people who moved out of San Francisco have moved out of the state.”
The results reflect the appeal of cheaper housing and more bay space, as well as the flexibility of remote working, which motivated so many Franciscans to leave the city.
Colin Yasukochi, executive director of CBRE’s Tech Insights Center, told Newsweek that many people, especially in San Francisco, were finding they didn’t have enough space to work from home during the pandemic. Additionally, with the unique amenities that lure people to disused cities, there was little reason to stay.
According to the study, millennials have been gradually moving out of San Francisco for years before the pandemic, reflecting a growing trend of tech giants targeting other subway areas. Data from nonprofit sf.citi shows that 63 percent of San Francisco-based businesses downsized their physical offices during the pandemic, freeing up 15.8 million square feet of commercial space.
This corresponds to an increase in vacancies of almost 20 percent. According to a survey by sf.citi of 83 founders and CEOs, at least a quarter of those surveyed said that around 30 percent of their workforce will stay away. More than a dozen large companies, including Airbnb, PayPal, Salesforce, and Twitter, have either scaled down or moved from home after work.
Digital Realty and Oracle announced plans to move their headquarters to Austin, Texas, and Credit Karma has completely closed its San Francisco offices, according to the data. Optimizely, a software company, rents all of its headquarters’ 78,000 square feet, and although Yelp plans to maintain a presence in the city, it has also rented its entire headquarters.
Some CEOs have berated California, such as Elon Musk, who very publicly announced last year that he would move Tesla’s facilities to Texas after a dispute with the local government over COVID regulations during the pandemic. Silicon Valley has had longstanding tensions with the general public and local government, which hit the tech sector with a “homeless tax” passed in 2018 and maintained in September 2020 after legal challenges.
The tax put on the ballot paper by the Coalition for Homelessness to increase funding for homeless services such as shelters, including Salesforce CEO Marc Benioff. Twitter’s Jack Dorsey and the city’s Chamber of Commerce are campaigning against the move, which legislation will raise taxes by 0.5 percent for companies making more than $ 50 million annually.
While the city permits obtained from the Teslarati publication show Tesla’s plans to expand Fremont, California, the factory suggests that Musk’s threats were nothing more than bravery. The number of people who moved from San Francisco to Texas during the pandemic rose more than 30 percent, according to the study.
Most of the city’s pandemic emigrants stayed nearby, however, and moves from San Francisco County to Sacramento County increased 70 percent in 2020. Yasukochi said he was not concerned about the corporate sector losing influence or strength. In fact, he expects a kind of boomerang effect in his population very soon.
“People were suddenly free to report to an office,” said Yasukochi. “We expect people to somehow return to the city of San Francisco as soon as their employers demand that they return to the offices at least temporarily. We have already seen some early announcements volunteering to open their faces.” Base, but we expect to see this on a much larger scale this summer. “
Protesters hold signs as they march down Market Street prior to a rally to show solidarity with Asian Americans at the Embarcadero Plaza in San Francisco, California on March 26, 2021. A new study found that the city lost more residents to resettlement than any other metropolitan area in the United States
Justin Sullivan / Getty Images