Silicon Valley remains the tech goldmine that attracts professionals from all over the world searching for rental apartments
Silicon Valley is located in the southern part of the San Francisco Bay Area in Northern California in the United States. The area owes its name to silicon chips that were manufactured there in masses since early 1970s and that constitute integral parts of virtually all electronic equipment. Today the region is home to world’s largest tech companies including Facebook, Apple, Yahoo, Cisco, Google, HP, Intel and Oracle. Despite the development of other high-tech economic centers throughout the United States and the world, Silicon Valley continues to be the leading hub for high-tech innovation and development, accounting for 1/3 of all of the venture capital investment in the United States.
Investors continue to choose the Eastbay Area
According to Kauffman Index that measures the start-up activity, San Jose - often considered the heart of Silicon Valley -- had the biggest number of new start-ups in 2016, with a 94.2 percent opportunity share of new entrepreneurs. The opportunity share means that the investors were driven by their free choice (opportunity) rather than economic necessity. One explanation for the ever-increasing share of invested capital in Silicon Valley is that success breeds success. The sheer concentration of companies in the Eastbay Area has led to far more opportunities than anywhere else, which in turn, has attracted more venture firms to the region.
Accommodation in Silicon Valley
In fact, the high supply of companies in Silicon Valley makes the area a heaven for creative tech professionals but a nightmare for employers who must fight for best candidates. Recruiters complain that it’s difficult to find local talents and they are forced to reach out for candidates from other states or even from outside the US and pay them extra for relocation. For hospitality business, it means a high demand for temporary accommodation, especially for serviced apartments in Palo Alto, Santa Clara, Sunnyvale, Mountain View, Belmont, San Mateo and Foster City. As a common destination for business travelers or professionals relocated to take part in a certain project, the area has a considerable share of renters. In Mountain View, for instance, renters make up 60 percent of all the households. The tenants are mostly well-paid tech workers but still they must face the costs of living incomparable to other areas in the country. No wonder that among the most popular accommodation options, it’s 1 bedroom apartments and 2 bedroom apartments that take the lead rather than big villas. Although the costs of living in Silicon Valley are high, it’s still pays off to take the risk and relocate to the tech goldmine. According to a report from the real estate agency JLL, employees of the tech industry in California’s San Mateo County earn the highest tech wage in the United States, making an estimated $240,663 per year. In 2014, the average annual earnings for employees in San Francisco increased by 12.8 percent and the trend is upward.
The success inspires imitators
Given the success of the Bay Area in attracting venture capital, it’s tempting for public and private sector leaders around the country to try to imitate the best practices of entrepreneurs from Silicon Valley. Many cities are creating accelerator models that resemble Y Combinator, the legendary Silicon Valley software-specific accelerator. On the opposite side of the country, the Brooklyn Tech Triangle is attracting entrepreneurs and making them seek accommodation in New York. That’s a good call, as the city of New York has built a strong support system for entrepreneurs. For example, the organization We Are Made in NY, established by mayor Michael Bloomberg, supports innovators from digital and media industry in transforming their ideas into successful businesses. The city also invests in education of the young talents with new training programs at the New York City College of Technology or Tech Jobs Academy organized by Microsoft.