Start-ups are slowing down and venture capital funding is decreasing, which, among other reasons, has caused an exodus from the famed tech hub of Silicon Valley, reports Vanity Fair contributor Maya Kosoff. The tech bubble is starting to burst, and Silicon Valley residents are leaving faster than they're coming in for the first time in four years. The Bay Area once drew hordes of innovative entrepreneurs, but lost more more than 7,500 residents to other tech-friendly and more affordable cities, such as Seattle and Austin, in 2015, according to a study conducted by the Silicon Valley Competitiveness and Innovation Project.
Housing costs may be the culprit. Kosoff explains:
There are a number of reasons for the exodus, according to The Wall Street Journal, and Silicon Valley’s bloated cost of living is likely among them. It costs more to rent a two-bedroom unit in San Francisco—an average of $4,200 per month—than anywhere else in the United States, the study reports. In 2015 through the month of August, Silicon Valley’s median home value was $870,000. An influx of talent and companies setting up shop in Silicon Valley over the years has also led to worsened congestion. In 2014, an average commuter in Silicon Valley lost 67 hours a year sitting in traffic—a 13.6 percent increase from 2010.