The Old Gray Mare – California – Ain’t What It Used to Be

**California, "The Old Gray Mare," ain't what it used to be...**

The once highly coveted lifestyle in the San Francisco Bay Area is increasingly losing its appeal. For decades, the Bay Area has been a symbol of innovation, opportunity, and high quality of life. However, recent surveys suggest that sentiment is shifting dramatically. The "2024 Silicon Valley" survey, conducted by Joint Venture Silicon Valley, paints a troubling picture of dissatisfaction, with an alarming number of residents indicating they plan to leave the region in the coming years.

The survey, based on interviews with 1,773 adults across five counties, highlights several factors contributing to this growing discontent. Concerns about the high cost of living, skyrocketing housing prices, the homelessness crisis, and the widening wealth gap between the tech industry and other sectors are driving many residents to contemplate moving elsewhere. In fact, nearly half (47%) of the respondents reported they are likely to leave the Bay Area within the next few years.

**Homelessness is pervasive throughout California.**

Housing and Homelessness: Top Concerns

Housing remains the most pressing issue for Bay Area residents, with 82% of respondents expressing serious concerns over the cost. As home prices continue to rise, homeownership feels out of reach for many, particularly renters, 53% of whom are likely to leave the region. Even among those earning over $100,000 annually, nearly half report they are unable to consistently meet monthly expenses and save. Furthermore, more than four in five non-homeowners (82%) doubt they will ever afford a home in the Bay Area.

The homelessness crisis is another pressing issue, with 79% of residents identifying it as a serious concern. As homelessness becomes more visible and widespread, it has become a major factor affecting the quality of life in the region. For some, the perception of the Bay Area as a place where immense wealth coexists with extreme poverty has become too difficult to reconcile.

**California quality of life continues to worsen.**

Quality of Life: A Downward Trend

An overwhelming 71% of respondents believe the quality of life in the Bay Area has worsened over the past five years. Only 12% reported that life has improved during that time. This degradation is especially concerning for younger residents. Among those aged 18-34, more than half (53%) say they are likely to leave the region in search of a better standard of living elsewhere.

One of the primary reasons for this dissatisfaction is the high cost of living. More than three-quarters (78%) of residents cite this as a serious issue. Nearly half of the respondents (47%) report that they are struggling to cover their monthly expenses and save, a three-point increase from the previous year. The cost of essentials such as food, utilities, transportation, and housing has become burdensome, with 46% finding it increasingly difficult to afford groceries, and 44% struggling with utility bills. For lower-income households, the situation is especially dire, with more than half of residents earning less than $75,000 annually unable to meet basic financial needs.

**California is bifurcating between the rich and the poor.**

Tech's Influence and Wealth Disparity

The role of the tech industry in shaping the Bay Area's economic landscape is another point of contention. Seventy-five percent of respondents feel that tech companies wield too much power and influence, and the same percentage are concerned about the growing disparity between tech wages and those in other industries. The disproportionate concentration of wealth in the hands of tech professionals has created an uneven playing field, leaving many feeling left behind. A significant portion of residents—57%—report concerns over the unequal distribution of wealth in the region.

**Many feel trapped by their economic circumstances.**

A Desire for Change, but Limited Options

Despite the growing dissatisfaction, many feel trapped. More than half of Bay Area residents with children (57%) report financial insecurity, and women—particularly Black (78%) and Hispanic (75%) women—face the highest rates of economic instability. These figures reflect the harsh reality that many families and individuals are grappling with in an area where the cost of everything from housing to childcare continues to climb.

Moreover, homeowners are not immune to the challenges. More than three in four homeowners report facing difficulties with their homeowner’s insurance, and 53% have seen substantial increases in premiums. Alarmingly, 29% say they know someone who has had their insurance policy canceled, and 8% have experienced a cancellation themselves.

**Between 2018 and 2023 over 3,500,000 people left California.**

The Exodus: Who's Leaving?

The desire to leave the Bay Area crosses demographic lines. Nearly half of all residents (47%)—including 53% of Hispanics and African Americans—are likely to move out of the region. Political affiliation also plays a role, with 67% of Republicans and 64% of Independents planning to leave, compared to 37% of Democrats. Income and homeownership status influence decisions as well; while 53% of renters consider leaving, only 37% of homeowners share the same sentiment.

As residents grapple with high taxes, housing costs, and a general sense of decline, the Bay Area seems to be losing its allure. While California was once synonymous with prosperity and opportunity, for many today, it no longer feels like the land of promise it used to be.

The Bay Area’s future remains uncertain, but one thing is clear: dissatisfaction is growing, and for many, the "Old Gray Mare" of California just isn’t what it used to be.

I made the Move Three Years Ago

If you are among those seeking a better life for you and your family, you have my empathy. After 30 years in Silicon Valley we had enough and left for greener pastures. You may learn more about why we left, how we decided where to go and how we feel about the move here.

We moved to Texas Hill Country just north of San Antonio. And after almost 40 years in hi tech, I became a Realtor to help others make the move. Hill Country may or may not be for you. But if you are looking to make a move, a conversation to learn more about the area can only help. Reach out and I'd be happy to tell you about the area.

Bill@HillCountryHomesteads.com | 408.827.8484 | www.HillCountryHomesteads.com

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