Why Businesses Are Leaving Silicon Valley and Moving to Sacramento
Silicon Valley has become known as the tech hub of the nation, if not the entire world. Companies like Uber, Facebook, and Google all got their start in this melting pot of tech enthusiasts and disruptors. But as time goes on, all this economic activity has increased the cost of living in Silicon Valley and the area now has the highest housing costs in the nation. Both incomes and housing prices are soaring in the Valley, leaving businesses and workers looking for an alternative.
Sacramento is now giving Silicon Valley a run for its money as more businesses and tech workers relocate to California’s capital city. Learn why Sacramento is looking more and more like the next Silicon Valley.
The Bridge Between Silicon Valley and Sacramento
While they may be more than 120 miles apart, Sacramento and Silicon Valley already have a lot in common. According to the U.S. Census Bureau, around 20,000 people are moving from the Silicon Valley area to Sacramento per year. While that may seem like a lot, it makes a lot of sense if you look at the numbers. The typical employee in Silicon Valley makes around $122,000 a year, which may be more than most, but when you factor in the cost of living, which is 43.6% more than the national average, six figures isn’t very much at all.
It may be easy to earn a six digit salary in the Valley but it’s equally easy to spend all that money on rent. That’s why as many as 120,000 workers are now commuting from Sacramento to Silicon Valley for work, where they can find much more reasonably priced housing Sacramento housing costs average around $228 per square foot, compared to Silicon Valley where housing costs average around $531 per square foot.
Businesses are reaping the benefits as well. Tech startups need a range of environmental assets if they’re going to succeed, including access to talent, research institutions, affordable workspaces, housing, and an economic environment that invites and rewards risk. This combination can be hard to find throughout much of the country, but Sacramento is one of the only cities in the region that fits the bill. The city offers affordable housing, tech-focused learning institutions like University of California at Davis and California State University at Sacramento with talent looking for work, and an economy that’s willing to take chances.
Changing Sacramento for the Better
Realtors are starting to cater their services directly to tech startups and new businesses looking to move into the Sacramento area. Companies like Ethan Conrad Properties are rehabbing older buildings to make them more attractive to these emerging players and their in-house construction crew makes sure these properties have that Silicon Valley look. Sacramento is still considered under the radar when it comes to tech hubs, so realtors like Ethan Conrad can keep their prices low, helping new businesses get off the ground for less.
Ethan Conrad Properties also has an in-house property management team to help new tenants successfully launch their businesses into an increasingly competitive marketplace, making things easier for employers looking to set up shop or relocate their facilities to the Sacramento area. Thanks to Ethan Conrad Properties dedicated team of skilled brokers, property managers, construction workers, and maintenance technicians, business owners don’t have to feel like they’re on their own as soon as they sign on the dotted line. With realtors rehabbing retail, office, and industrial properties, businesses can also make sure their employees have access to affordable housing and even warehousing space if they want to manufacture their products themselves.
Realtors like Ethan Conrad are here to help these companies transform Sacramento into the next tech capital of the nation. Find affordable properties in Sacramento and contact Ethan Conrad Properties today!