Shifting to the Bay Space or leaving? Right here’s the place persons are relocating
SAN JOSE, California (KRON) – Over the past year, the coronavirus pandemic has changed what we call home and, as a result, has made many people rethink where we want to live.
For some Bay Area residents, it was time for a change.
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“There is a major reshuffle in American housing where, for the first time, many office workers have moved away from physical locations and decided to move to areas that better suit their needs,” said Chris Glynn, an economist at Zillow.
“The pandemic has again underscored the value of home. It’s a place we’ve been together since March 2020. It was the center of our lives and a place where we took shelter from a very chaotic and unsafe public health situation. ”
Zillow’s 2021 Mover Report shows that more than one in ten Americans say they moved in the past year, either by choice or by circumstances.
San Francisco ranked fifth as the top subway area for net outbound removals. This shows that most of the residents have moved to Seattle, WA, Austin, TX, and Portland, OR.
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“One of the things we see in the San Francisco numbers is that there are additional people who are choosing to move within the Bay Area, away from the urban core of downtown San Francisco and further out into the suburbs “says Glynn.
Where do people come or go from? Here’s what Zillow says:
Top travel destinations / top origins
| SF Movers: Top 10 Travel Destinations | Mover to SF: Top 10 Origins |
| Seattle, WA | Chicago, Illinois |
| Austin, TX | New York, NY |
| Portland, OR | Washington, DC |
| Phoenix, AZ | Seattle, WA |
| Denver, CO | Boston, MA |
| New York, NY | Philadelphia, PA |
| Chicago, Illinois | Los Angeles-Long Beach-Anaheim, CA. |
| Washington, DC | Portland, OR |
| Houston, Texas | Austin, TX |
| Atlanta, GA | Denver, CO |
Courtesy of Zillow
A significant number of homeowners say they are more likely to move and sell their home due to the pandemic. This corresponds to an additional 8 million households that could enter a real estate market that is already being driven by high demand.
But despite reports of a mass exodus from the Bay Area, the reality is this: enough people are simply not moving in to make up for the number of people moving out of the area.
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“I think the mass exodus narrative around San Francisco [Bay Area] isn’t accurate, ”says Glynn.
“It’s not so much that people are fleeing the Bay Area, it’s that not many new people are coming to the Bay Area,” added Glynn.
“And that’s the biggest difference between a place like San Francisco and Seattle, for example.”
For the past five years, the majority of domestic emigrants from Silicon Valley stayed in California.
According to the Silicon Valley Index 2021 compiled by the Silicon Valley joint venture, 29% stayed in the Bay Area, 6% moved to the nearby Monterey Area, 6% to the Sacramento Area, 8% to the San Joaquin Valley and 14% to the Bay Area Southern California.
“There is a difference in property prices between the core, the peninsula and the southern parts of the bay. These are some of the most expensive property prices. The median home sales price is north of a million dollars,” said Russell Hancock, CEO of the joint venture Silicon Valley.
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“There are cheaper apartments in the East Bay and even beyond if you drive over the Altamont Pass,” added Hancock.
“They have pretty affordable real estate, so people take advantage of that.”
According to the index, counter-migration is also occurring, with more people moving out of Silicon Valley than moving in, resulting in a net outflow of approximately 5,100 people per year.
In contrast, fewer Silicon Valley residents move to San Francisco than after moving in, resulting in a net inflow from San Francisco of approximately 2,500 people per year.
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“I think the high taxes we have with a state tax rate of 13.3% are at the highest marginal rate. It is talked about and it just scares a lot of people,” said Paul Getty, President and CEO of First Guardian Group in San Jose.
“In particular, some of our senior investors who have tied up a lot of equity in California real estate are now looking to cash out and reinvest so they can earn a much higher retirement income.”
Getty tells KRON4 News that many employees in the Bay Area have moved completely out of the area because work from home has become available and companies have taken advantage of it.
“A lot of people still get California paychecks, but they live in cheaper areas like Boise or Atlanta,” says Getty.
Despite reports of the Bay Area exodus, many remain in California
“They move out of the more expensive areas because they can, and in many cases employers actually find them more productive because they don’t have to commute back and forth on a daily basis.”
