Redfin CEO: 'Silicon Valley Is Going To Leave CA"


Move over California and New York: Make room for Texas and Utah.

That’s the message of Redfin’s Glenn Kelman, chief executive of the $2.5 billion web-based real estate company, which predicts the surge of migration from coastal to middle America will continue, if not accelerate.

“Silicon Valley is going to leave Silicon Valley,” Kelman told CNBC’s Power Lunch show on Wednesday. “Google employs more engineers outside of Silicon Valley than it does in Silicon Valley, and if Google can’t afford Silicon Valley, then no one can.”

The main driver, Kelman said, of the migration of workers and companies from cities like San Francisco, Los Angeles, and New York, to Houston, Dallas, and Salt Lake City will be housing prices. That and the new GOP tax plan, which lowers the cap on interest-deductible mortgage debt from $1 million to $750,000.

“Amazon is leaving Seattle! They’re not going to go to Boston, they’re not going to go to New York,” Kelman said. “The technology companies, the Wall Street companies, they are chasing the talent, the talent is chasing affordable housing.”

Although Redfin is based in Seattle, Kelman believes the coastal exodus will be “so good for the country.”

“You shouldn’t have that many people making so much money in just a few cities. It should spread to the rest of the country,” Kelman said.

"It used to be that in California we felt like we owned the future," he said. "We felt like everything was happening here first and now you see that swagger, that confidence in the center of the country. People in Detroit, people in Texas, they think they own the future and I think tax reform has really given a boost to that argument."

Cancer continues it's creep.

Good. Maybe the ridiculous bubble will finally burst. Tiny, piece of shit homes selling for four times what they'd be worth anywhere else because the whole area is overcrowded with tech money.

Amazon is not leaving Seattle.

That statement was a lie. They are expanding by opening a 2nd headquarters.

ImOldGreg -

Amazon is not leaving Seattle.

That statement was a lie. They are expanding by opening a 2nd headquarters.

Some folks see it as an Exodus. Some argue they would just keep expanding here in Seattle if Seattle did the right things instead of treating them with contempt and taking them for granted. 

The tech industry must be the main driver of housing prices increasing and now they’re going to leave because of it?

California, although presently a powerful economic force, is not immune to economic influence. High tax rates and mandated handouts of all sorts will ultimately destroy this once viable economic entity. It’s sad to me to watch California implode in this way. 

Unfortunately, that's going to bring a big amount of SJW dogma with it to wherever it goes as well.

Redfin is a "me too" company - I am very unimpressed - days are numbered

Wherever they move to will just experience an explosion of real estate prices.

Soup and Beer - 

Wherever they move to will just experience an explosion of real estate prices.

Big time. Young folks making big money - expect to see a huge surge in prices, especially if there are not a lot of available houses.

But it makes sense that SV may spread out. If it's hard to recruit new workers because of housing prices, maybe it's time to expand.

SAVE THE COUNRY = spay and neuter Commifornians before they move to your state.

I'm probably underestimating the benefits of having quick, in-person access to investors and talent, but why is the tech industry so geographically centralized in the first place? It seems like the easiest industry to move online and I know of so many people who do the digital nomad thing. Why huddle around Silicon Valley?

alkysmurf - Cancer continues it's creep.

Should have left years ago. Nevada, wyoming, texas, utah and arizona are far better for business. 

Utah sucks so that's good

They're going to move and vote to pass laws that are anti-business and turn their new homes into the shitholes that they left.

They are realizing it is stupid to step out of your $3500 a month 1 bedroom apartment and have to step over five crackheads and their government issued tents to get to your "secured" parking spot to find your car broken into so you can sit in it for 2 hours to go 5 miles to do a job that is all online anyway. But ooo, there is a ping pong table in the cafeteria!



blue Texas here we come