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Silicon Valley tech boom is inflating rents… by a lot

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San Francisco red-hot startup activity is not only inflating the commercial real estate market, but it is also having an impact on the residential rental market, data shows. Since January 2011, annual rents are up by $5000 but things are even worse down in the Peninsula. Some are blaming it on the IPO market, but I personally think it is more and more people moving to SF Bay Area, working for tech startups and thus putting pressure on the local real estate market.

From blog

While we’re happy that our tech-driven economy is rebounding, renters are getting hit hard on prices, especially on the Peninsula (which we’re categorizing as Daly City, Palo Alto, Menlo Park, Mountain View, San Bruno, San Mateo and Sunnyvale).

Over a 16-month period, asking rents in those cities went up an average of 44%. At the same time, San Francisco rents went up around 19%. Also a very large jump. Last January rent in San Francisco was $900 more expensive than on the Peninsula, on average. Today, the difference is only $650.

3 Responses to “Silicon Valley tech boom is inflating rents… by a lot”

  1. Everyone is migrating to the East Bay TriValley its cheaper and still a drive away from Silicon Valley and SF customers. Oracle, SAP, etc are already there.

  2. Michael W. Perry

    These start-ups should relocate other high-tech areas such as:

    * Austin, TX
    * Huntsville, Al
    * Research triangle in NC

    The cost of living is lower and the schools are likely to be far better.

    Get out of California while you can. Within few years the state will try to solve its budget woes by heavily taxing Silicon Valley. It’s one of the few areas showing large profits.

    If if you leave now, when property values are up, you can do very well in a new locale.