The Bay Area’s high cost of living has made some tech companies add satellite operations in Phoenix and other “cost effective” cities in the Southwest.
Between 2010 and 2015, the technology sectors in Austin, Phoenix, Dallas all experienced double-digit job growth as Uber, Yelp, Weebly and other companies originally from Silicon Valley opened up additional offices to better accommodate employee growth.
From the New York Times:
At the end of last year in the Bay Area mega-region — including both the San Francisco and San Jose metropolitan areas — there were 530,000 tech and engineering jobs, a 7 percent increase from a year earlier. Phoenix has about one-fifth as many tech jobs, but the total grew 8 percent from a year ago, according to Moody’s Analytics.
“The Bay Area’s explosive growth is almost too much for the region,” said Jackson Kitchen, an analyst at Moody’s Analytics. “They are bidding up wages so high that companies are saying, ‘Let’s expand to Phoenix or Boise or Salt Lake City where wages and real estate are that much cheaper.’”