Catastrophic Plunge in Jobs & Labor Force in Los Angeles, San Francisco/Silicon Valley Smacks into Housing Bubbles | Wolf Street
In the Bay Area, Big Tech has largely switched to work from home, and their employees have jobs, but it doesn’t matter where they do those jobs, and the exodus, particularly among the younger workers – like my counterpart at Google – has begun there too.
Other people who have been laid off cannot afford to live in the Bay Area for long. For them, the state unemployment compensation and the federal Pandemic Unemployment Assistance help but are not enough to fund the high costs of living. If they haven’t already left, and if they don’t get jobs soon, they will leave. This is precisely what happened during the Dotcom Bust. But it wasn’t all at once. It took years to play out. The average rent dropped 25% during those four years.
Mortgage forbearance and the refusal to pay rent – with evictions on hold – will slow down the process. People can stick it out as long as they don’t have to pay for housing. But this is not a permanent feature. And then the floodgates open.