When it comes to the tech industry, Silicon Valley has long reigned as the place to be. However, new research shows things may now be changing.
A report by the Brunswick Group has found that Silicon Valley is having difficulties locating new workers, and this may cause issues for the area’s future.
For the report, the Brunswick Group surveyed 300 tech workers employed in Silicon Valley in order to understand the industry’s health, market opportunities, impending threats and more.
Researchers found that 74 percent of tech workers expect China to be the most serious rival to the San Francisco Bay Area. Respondents also named Austin, Texas, to most likely rival within the United States. This should come as no surprise, especially with Amazon now expanding its Austin Tech Hub.
Another thing that came up in the survey was that younger people don’t want to stay in the bay. A significant portion of the younger generation plans to leave the Bay Area within the next year, specifically 41 percent of 18-to 34-year-olds. The Brunswick Group didn’t confirm “why” people are in a rush to leave, but it could have something to do with rising housing and living costs.
For example, the Council for Community and Economic Research found that the cost of living in San Francisco is 62.6 percent higher than the United States average, according to Smart Asset. In addition, housing is about three times more expensive.
Companies can’t realistically expect people to work where they can’t afford to live. It’s important to note that the tech industry itself has played a critical role in skyrocketing housing costs. So, it’s ironic to watch Silicon Valley suffer under a system it partially helped create.
As the tech industry continues to expand, it makes sense that people are going to move outside of one area. Plenty of those surveyed are still optimistic about Silicon Valley’s future with more than half expecting their companies to grow.