In a report detailing the city’s five-year financial plan, officials cited “dramatic evidence of overseas migration,” including a 25% year-on-year drop in apartment prices – highly concentrated in areas where tech workers live.
“This indicates that office workers, who work remotely, are the group driving the mass migration, and the low-wage workers who are most likely to become unemployed,” the researchers wrote. “External migration, not just home work, is another consequence of the shift toward remote office work during the pandemic.”
While some companies – such as Twitter and Facebook – have committed to enduring flexibility in remote work, it is unclear what percentage of other employees will be required to return to the office when the pandemic subsides.
San Francisco leaders are warning that if workers are not required to return to their downtown office buildings, this could have “severe” impacts on the local economy.
The leaders said: “The activities of the private sector offices that drive the entire city’s economy, and the tax revenue of the city, are located in the city center to access and build the workforce of the specialized and highly skilled labor found in the Gulf region.” “If it is no longer necessary to physically bring workers to downtown offices – or even these workers live in the Gulf – the consequences for the regional economy could be dire.”
The city previously announced a 43% year-on-year decrease in sales tax Revenue during the pandemic, which San Francisco Chief Economist Ted Egan It was attributed to people fleeing the city, rather than the decrease in activity due to the epidemic.
Egan told Fox News that while areas across California saw a drop in sales tax revenue, other cities saw a rise in online sales – but San Francisco didn’t.
Data from a carrier United Van Lines San Jose, California, listed as one of the cities with the largest outflow of outflows in 2020.