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California tech transplants unhappy with exodus to Austin, report says
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useapen
Sep 5, 2023, 3:36:34 AM9/5/23
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One of the biggest themes of the early years of the pandemic was the
exodus from San Francisco. Given the freedom of remote work, many Bay Area
residents choose to move elsewhere — be it Iowa, Miami, Tahoe, Austin, or
more recently, Sacramento. When SFGATE interviewed five tech professionals
in 2021 who left for Austin, most were charmed by the capital of the Lone
Star State. But a recent report from Insider suggests many transplants’
opinions have soured.
The problem? Even as high-profile companies and power brokers like Elon
Musk move to the area, the tech scene remains nascent compared to
California’s, according to Insider. There exists a differential in “talent
density” between Austin and Silicon Valley, one founder and investor told
Insider. Even as Austin gains a foothold as a tech hub, talent remains
concentrated in the Bay Area — meaning more successful companies, and
therefore more talent. The effects compound.
To put it simply — a growing tech sector doesn’t automatically equate to
Silicon Valley-levels of dynamism.
The founder who spoke with Insider summarized his woes succinctly: “Austin
is where ambition goes to die,” a statement considered a negative here,
but one coincidentally aligned with the city’s laid-back mentality, which
was cemented in pop culture with the ’90s indie film “Slacker.”
It’s not just the city’s comparatively underdeveloped tech scene that
disappointed Insider’s sources. One company’s product lead pointed to
thick traffic and unreliable public transportation. Another transplant
cited the city’s 100-plus-degree heat, in what was one of the city’s most
brutal summers since 2011, when only two days in July didn’t hit triple
digits.
Some tech workers may be on their way out. Using U.S. Postal Service data,
Insider determined that from January to May 2023, Austin saw the fifth-
largest net outward migration among major U.S. cities.
But others feel trapped — financially, if not physically. Workers who
purchased homes in Austin in 2020 and 2021 benefited from low interest
rates on homes that were considered bargains relative to Bay Area real
estate. Now that interest rates are higher, trying a new city on for size
is a much more expensive proposition.
https://www.sfgate.com/local/article/california-transplants-unhappy-
exodus-austin-18343754.php
exodus from San Francisco. Given the freedom of remote work, many Bay Area
residents choose to move elsewhere — be it Iowa, Miami, Tahoe, Austin, or
more recently, Sacramento. When SFGATE interviewed five tech professionals
in 2021 who left for Austin, most were charmed by the capital of the Lone
Star State. But a recent report from Insider suggests many transplants’
opinions have soured.
The problem? Even as high-profile companies and power brokers like Elon
Musk move to the area, the tech scene remains nascent compared to
California’s, according to Insider. There exists a differential in “talent
density” between Austin and Silicon Valley, one founder and investor told
Insider. Even as Austin gains a foothold as a tech hub, talent remains
concentrated in the Bay Area — meaning more successful companies, and
therefore more talent. The effects compound.
To put it simply — a growing tech sector doesn’t automatically equate to
Silicon Valley-levels of dynamism.
The founder who spoke with Insider summarized his woes succinctly: “Austin
is where ambition goes to die,” a statement considered a negative here,
but one coincidentally aligned with the city’s laid-back mentality, which
was cemented in pop culture with the ’90s indie film “Slacker.”
It’s not just the city’s comparatively underdeveloped tech scene that
disappointed Insider’s sources. One company’s product lead pointed to
thick traffic and unreliable public transportation. Another transplant
cited the city’s 100-plus-degree heat, in what was one of the city’s most
brutal summers since 2011, when only two days in July didn’t hit triple
digits.
Some tech workers may be on their way out. Using U.S. Postal Service data,
Insider determined that from January to May 2023, Austin saw the fifth-
largest net outward migration among major U.S. cities.
But others feel trapped — financially, if not physically. Workers who
purchased homes in Austin in 2020 and 2021 benefited from low interest
rates on homes that were considered bargains relative to Bay Area real
estate. Now that interest rates are higher, trying a new city on for size
is a much more expensive proposition.
https://www.sfgate.com/local/article/california-transplants-unhappy-
exodus-austin-18343754.php
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