Silicon Valley is expected to maintain its position as a global technology hub for the foreseeable future.
The Bay Area’s many tech companies and startups continue to draw skilled workers from across the world, but this prosperity has created some unique problems. Tech companies offer high wages to the best workers, and so many of them live in one place that it has one of the highest costs of living in the world. The average family here must earn more than $100,000 each year simply to make ends meet, while the median home costs north of $1 million. Put simply, the city cannot build new houses and facilities fast enough. When demand outstrips supply, prices rise.
Workers are moving further and further afield in search of affordable housing, pushing commute times to well over two hours. To rectify this, cities throughout the Bay Area are investing in rapid transit by extending lines further into the hinterland and further into the city center. Several office parks are also in the works, but the residential sector is the largest here by far. The increased attention on the residential sector is badly needed in the market and will both provide billions of dollars in construction spending and reduce the cost of living.