Technology Companies and Homeowners Relocating... Why?

Over the past few years, there has been a noticeable trend of technology companies and homeowners relocating from one state to another. This trend has several underlying factors driving it, including cost of living, access to talent, and changing work arrangements.

One of the main reasons for this trend is the high cost of living in some of the more established tech cities like San Francisco, New York, and Seattle. The rising cost of housing, coupled with high taxes and other expenses, has made it increasingly difficult for both individuals and companies to operate in these areas. As a result, many have decided to relocate to cities with lower costs of living, such as Austin, Denver, or Atlanta, where they can enjoy a higher quality of life at a lower cost.

Another factor behind this trend is access to talent. Technology companies need access to a pool of skilled professionals to remain competitive, and some regions simply don't offer that. In response, many companies are relocating to areas with more talent, either by moving their headquarters or by opening satellite offices. This trend is also driving relocations among homeowners, as they follow job opportunities to new locales.

Finally, the COVID-19 pandemic has accelerated this trend by showing that remote work is not only possible but often preferable. Many companies have discovered the benefits of remote work, including reduced overheads and greater flexibility. This has enabled employees to relocate to areas with a lower cost of living, even if their employers remain headquartered in expensive tech hubs.

As technology companies and homeowners continue to relocate, there will be winners and losers. States that offer low cost of living, access to talent, and an easy business environment will likely benefit from this trend. Meanwhile, cities that fail to adapt to these changes could see a decline in demand for residential and commercial properties.

Regardless of the economic effects, the shift in how and where people work and live is certainly going to continue shaping our built environment in the coming years. Modern technologies, however, could help mitigate some negative impacts, especially bridging remote work and team collaboration.