6 Regions Where Tech Jobs Boom the Housing Is Scary ExpensiveTech companies bidding for coveted talent are indirectly driving housing costs higher than most people can easily afford.
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Across the country, home buyers are experiencing the effects of last decade's housing crash, as builders in many places hesitantly return to new construction. Supplieshave improvedin 21 of the 100 largest markets, but experts believe it will be six months to a year before many other areas begin to see improvement.
Here are six regions where the growth of new construction is so painfully slow it simply doesn't keep up with the demand. People in these areas are struggling because the housing shortage has been made worse by a very healthy tech economy. All of these regions could be in danger of losing large numbers of longtime residents, and in some cases already have.
1. San Francisco Bay area
The crisis in the Bay Area has reached such epic proportions, the Obama Administration has evencalled for more housingthere. The large number of tech headquarters in the area has created a population boom that has added to an already bustling region. The city at the center of it all, San Francisco, consistently ranks atop城市列表with the highest-paying salaries, which has driven housing prices up. Only11 percentof households in the San Francisco area can afford houses in the city, creating a serious problem for the majority of people who don't work for tech companies.
One of the odder developments in this ongoing drama is the city's recent and slightlybizarre exploration of annexingthe small town of Brisbane just to its south. That town planned on approving a massive commercial development that would not feature any housing. San Francisco city officials weren't happy because the city would probably be forced to provide most of the housing for workers in the new development. Top officials wanted to explore somehow taking over the small town. Cooler heads prevailed and now Brisbane and San Francisco are working on a compromise that will feature housing. It shows just how big of an issue housing supply has become.
Meanwhile, the ongoing San Francisco exodus has resulted inmigrations of top tech talent to Portland, Seattle, Austin, Los Angeles anddozens of other tech hubsall over the country, not to mention Oakland and other cities in the East Bay.
Related:San Francisco Rent Is So Insane, This Guy Lives in a Box for $508 a Month
2. New York metropolitan area
Like many areas with housing shortages, New York City is seeingincreasing rent prices. Although the Big Apple has always had a high cost of living, residents are drawn there due to its world famous 24-hour lifestyle, economic opportunities and availability of high-level, specialized jobs. A large number of wealthy individuals from all over the world have moved their money into real estate, especially in Manhattan, driving up costs for whatever is left.
The cityhas also become a serious contenderin tech in the last several years, thanks in large part to growing industries like FinTech and FashionTech. As perhaps the world's leading financial center, New York is a hub for venture capital and the startup founders seeking it. All of this only compounds the existing problem with high rents in the city, because tech workers earn the salaries to afford the fewer units that are available in the most desirable areas.
Related:Game Changer: The First 3-D Printed House Is Coming
3. Dallas-Plano-Irving
这area of Texas was described as overheatedin a recent survey. Dallas-Plano-Irving was accused of being one of the worst housing markets in the country because of rising costs, a shortage of properties, and the area's overall economic conditions. The low price of oil has contributed to astruggling energy economyin parts the Lone Star State, with more than 30 energy company bankruptcies in recent years. The sad fact is fewer people can afford somewhere to live in Dallas and surrounding cities.
The success of the state's technology sector has contributed to this situation as well. When it comes to tech jobs, the Dallas Metroplex isfifth in the country, with even more jobs added last year. While this has helped improve the area's overall economic outlook, it hasn't helped with the housing crunch, as workers have come along andsnapped up new homes, leaving prices higher.
Related:3 Alternative Tech Startup Cities With Less Traffic, More Housing (Infographic)
4. Atlanta metropolitan area
One studyranked Atlanta's housing shortage as worst in the country, with inventory well below normal levels. Tech sector growth in the areahas been one of the driving forcesas it continues to recover from the recession, but homes are still withinan affordable rangefor big cities. Those prices are on the rise, though, withmany of the new developmentsin the city qualifying as "luxury." This may be affordable to tech workers choosing to relocate to the area, but it brings bad news to Atlanta-area residents whomake average salariesin non-tech areas.
5. South Florida
Nearly40 percentof working households in the Miami area devote at least half of their monthly income to housing. This, combined with an affordable housing shortage in the area, has made it difficult for lower-to-middle-income residents to find housing. South Florida has turned to tech as an answer to its employment woes,working to attractmore tech jobs to the area, which it is hoped will benefit the local economy.
6. Seattle-Tacoma-Bellevue
Like Silicon Valley, the Seattle areais drawingtech companies and their workers, creating a demand for housing. Unfortunately, the existing shortage of housing in the area means that many new arrivals face similar problems to what they'd find in San Francisco. Condo prices in Seattle have alreadyshot up 21 percent今年由于技术工人的涌入。这trend is only expected to increase, partly because the area's housing prices are still lower than what you'd find in Silicon Valley.
While homebuilders nationwide are rushing to fulfill demand, those who are thinking about selling their homes often wait because they realize that if they sell they won't be able to find anything affordable in their city, if they want to stay. Gradually, the national housing inventory is improving in many areas, but that's complicated by the rise in technology jobs around the country. As companies pick certain cities for their headquarters or other offices, it brings an influx of tech workers who can handle the increased housing prices. That leaves thousands of non-tech residents behind in the search for an affordable place to live.
