Can Silicon Valley Continue to be a Center of Innovation?

When we think of Silicon Valley, we think of an area on the West Coast that is home to many tech companies like Apple, Cisco, Roku, Tesla, and Google. Some might include San Francisco and the East Bay to be a part of Silicon Valley because they're home to many startups and established tech companies. For this blog post, we'll include The SF Bay Area when we talk about "Silicon Valley."

Before the tech boom, real estate in the area was already valued with a premium as the great weather, and San Francisco's booming finance industry added value to the area. While real estate on the West Coast was worth a premium, it was still affordable for many people. 

Once the tech boom occurred, that's when property and rent prices in the area accelerated. No longer could teachers afford to live in the same towns that they taught at. Only those who made the big money could afford the homes. As time progressed, those that made six-figures in their jobs started struggling to afford a good home in the area as well. 

The housing crisis in Silicon Valley has become so bad that many are either leaving Silicon Valley or choosing to work remotely. Because the cost of housing is very high, those that could no longer afford the rents are either homeless or living in areas far away from where they're barely being able to afford rent. Meanwhile, you have people that aren't feeling the bite of the affordable housing crisis because they're either homeowners that have bought their homes before the boom at low prices or they're really wealthy and have the flexibility to live anywhere.

Let alone the high tax rates and the high toll fees, the high cost of living in Silicon Valley is impacting productivity for the many people living and working there. As costs continue to rise, I am concerned about whether Silicon Valley can continue to be the center of innovation it has always been seen as. If people continue to worry about affordability, then at some point, people will start leaving. The many talented people that compose Silicon Valley will find (or create) opportunities in areas that are cheaper to live in. 

If the affordable housing crisis persists, at any moment, Silicon Valley will become a ghost town.