Housing prices soar in mountain towns thanks to tech transplants

Remote-working policy of major tech firms is having a ripple effect

National /
Nov.November 02, 2020 09:15 AM
Housing prices in the Rockies see a bump as tech workers move in from the coasts (iStock)

Housing prices in the Rockies see a bump as tech workers move in from the coasts (iStock)

Housing prices are rising fast in Western mountain communities where newly liberated tech workers are moving in.

Major tech firms, including Facebook, Twitter and Stripe, have implemented flexible work-from-home policies for their employees — some permanent — since the onset of the pandemic. And some of their employees who were previously tied to the Bay Area are flocking to towns around the Rockies, such as Boise, Idaho, and Park City, Utah, the Wall Street Journal reports.

That’s good for local businesses, but it’s creating tension because of the widening wealth gap as well as the rising housing prices. Remote-working tech workers with generous paychecks snatch up available homes sometimes with all-cash offers, according to the Journal.

In Bozeman, Montana, the median home price has risen to $515,000 from about $432,000 in a year, according to the Bozeman-based Gallatin Association of Realtors.

Amy Alvarado, a Bozeman real estate agent with Engel & Völkers, told the Journal that about 95 percent of her clients since the pandemic are from the Bay Area, and many make all-cash offers.

The transplants from the Bay Area have been a boon for businesses like restaurants and bike stores, but they also drive up cost of living, said Casey Metzger, owner of the Top Shelf mobile bartending and consulting service in Park City, Utah.

“If we don’t pay attention to low-income housing, we’re going to be in trouble,” Metzger told the Journal.

[WSJ] — Akiko Matsuda


Related Articles

arrow_forward_ios
Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC
A rendering of 165 Broome Street (Credit: Handel Architects)

Nonprofit plans affordable housing development near Essex Crossing

Nonprofit plans affordable housing development near Essex Crossing
Quarters CEO Rui Barros (Linkedin)

Quarters, the “WeWork of co-living,” files for bankruptcy

Quarters, the “WeWork of co-living,” files for bankruptcy
The Real Deal's E.B. Solomont

Compass investors in line for payday, $100M for a flex-living startup

Compass investors in line for payday, $100M for a flex-living startup
(Getty, iStock)

Booster shot: NYC real estate sees salvation in vaccine

Booster shot: NYC real estate sees salvation in vaccine
Joan Collins and 110 East 57th Street #8EFG (Getty, BHS)

Soap star Joan Collins lists longtime Midtown pied-à-terre

Soap star Joan Collins lists longtime Midtown pied-à-terre
Tommy Hilfiger and his recently sold estate in Greenwich, CT. (Getty, Janet Milligan)

Tommy Hilfiger’s Greenwich estate sells for $45M

Tommy Hilfiger’s Greenwich estate sells for $45M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...