The 2020 San Francisco exodus is real, and historic.
In San Francisco, list prices have fallen 4.9% year over year and inventory has risen 96% with a flood of new listings.
Contrast those numbers to Reno-Sparks' - where list prices have risen 6.2% year-over-year and inventory has fallen 57%.
A new Zillow report confirms what many have been talking about for weeks: There is an exodus out of San Francisco, and the numbers are staggering.
When comparing the principal city to its surrounding suburbs, the San Francisco metro area does break the mold. Higher levels of inventory, up 96% YoY following a flood of new listings during the pandemic, are sitting on the market in the city proper, a significantly larger jump than the surrounding suburbs," the report states. "Whereas in similar cities like Los Angeles, Miami, Boston, Seattle, and Washington, D.C., declining or flat inventory is a consistent trend within and outside the city limits."
The reason for this change is likely a combination of a few unprecedented factors that have collided this summer, resulting in a historic shift in the city.
The astronomical cost of owning a home in the San Francisco city limits - which has been sky high for over a decade now, since the second tech boom - had to break at some point, and the coronavirus seems to be the straw that broke the camel's back. The pandemic soon led to tech giants like Google, Facebook and Twitter rethinking what work looks like, as many have allowed employees to work remotely for the foreseeable future, and maybe forever.
This, combined with the fact that most entertainment venues, eateries and bars in the city have closed, has given many residents - particularly tech employees and transplants - little reason to stay, when more spacious, literally greener pastures beckon in (relatively) less costly regions.
The imbalance in U-Haul truck rental traffic to and from Reno, and the resulting discrepancies on truck rental rates. See the table below.
When you take Nevada's zero state income tax, relatively lower home prices, lower property taxes, and lower cost of living, it's easy to see the attractiveness of The Silver State. And these favorable attributes appeal to retirees and job seekers alike.
According to a recent United Van Lines Movers Study, of those people moving to Nevada, nearly 37% cited "retirement" as their primary reason for moving, and one-third cited "job" as their primary reason for moving. Other reasons cited included "family" and "lifestyle".