To translate this economic momentum into promising long-term growth, certain factors must be in place. Relative affordability, high quality of life, and a strong entrepreneurial environment are key drivers of the sustainable growth and success of Tri-Valley companies.
Growth from San Francisco and Silicon Valley exodus
People and businesses are increasingly relocating to the Tri-Valley due to skyrocketing real estate prices in San Francisco and Silicon Valley. The 2015 Silicon Valley Index Report noted that Silicon Valley is “proliferating high-wage and low-wage jobs but [is] steadily losing share of the middle… it’s as if the economy has lost its spine.”6
From 2011 to 2015, the median price of an apartment in San Francisco increased by 50%.7 While housing costs increased in the Tri-Valley in 2016, they are still at a substantial discount to San Francisco. As of September 30, 2016, average asking rent in San Francisco was nearly $3,500, a 50% premium over Alameda County. For homeowners, monthly housing costs at median house prices are approximately 40% less in Alameda County than in San Francisco and San Mateo County.8