The Tech Layoffs Impact On Bay Area Home Prices

A local economy that leads the world

The Bay Area has a unique economic setup. Many of the world’s biggest tech companies are based here. And also, thousands of smaller startups are located in the area. These enterprises attract talent from all over the nation and the world, wanting to participate in attractive salaries and professional development opportunities.

Growth can not be endless.

But no sector of the economy, not even tech, can grow in the number of employees forever. Economic factors such as higher interest rates, persistent inflation, and supply chain disruptions have reversed the trend. Now, many well-known tech companies are reducing their payrolls.

The numbers are significant. In 2022, 10,457 tech-related employees saw their jobs finished. So far, in 2023, an even more substantial number (12,318) have been laid off. Industry experts expect this trend to continue. 

The question in many of your minds is: will this situation affect Bay Area home prices? Will homes be harder to sell this year?

Still too soon to say

It is hard to tell if this wave of tech layoffs will impact Bay Area home prices. As I mentioned in my last real estate market update, Bay Area home prices have dropped for some time now, even before the tech layoffs, primarily due to the interest rate hikes. And although many high-paying jobs in tech are lost, our region is also home to many other thriving sectors, such as finance, healthcare, and education. Some laid-off employees might find new employment in those sectors. 

But others might choose to move out of the Bay Area or California altogether, putting in the market homes that may increase our notoriously short inventory of available houses. Still, it is too early to say how many will choose that option and if that will significantly increase the availability of homes.

We are here to help

At The Cal Agents, our team of experts is ready to listen to your situation, whether or not you have been affected by the tech industry layoffs. If you want to discuss real estate purchase opportunities or how to sell a home you own, schedule a free, no-obligation consultation with one of our experts. Consultations can happen in our meeting rooms, via Zoom, or over the phone.