{"id":188361,"date":"2026-06-24T13:54:49","date_gmt":"2026-06-24T19:54:49","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=188361"},"modified":"2026-06-24T13:54:52","modified_gmt":"2026-06-24T19:54:52","slug":"ai-created-tech-layoffs-are-shifting-the-housing-market","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/ai-created-tech-layoffs-are-shifting-the-housing-market","title":{"rendered":"AI-Created Tech Layoffs are Shifting the Housing Market"},"content":{"rendered":"

AI-powered layoffs are shaking up the once-bulletproof tech job market, with<\/span> more than 100,000 layoffs<\/span><\/a> so far this year alone. For real estate investors, the burning question is where all the high-net-worth talent is going\u2014assuming they are leaving established hubs such as Silicon Valley and Seattle\u2014and whether following them makes financial sense.<\/span><\/p>\n

\u201cA New Way of Working\u201d<\/span><\/h2>\n

Your plumber, electrician, and roofer may have the safest jobs in town. Artificial intelligence is devouring computer-based jobs like whales over plankton, and ironically, employment in tech is one of the first to go.<\/span><\/p>\n

According to a recent report by global outplacement and executive coaching firm<\/span> Challenger, Gray & Christmas<\/span><\/a>, AI has become the leading reason companies cite for layoffs.<\/span><\/p>\n

\u201cIn short: AI is bringing a profound shift in how companies operate, and we\u2019re reshaping Coinbase to lead in this new era,\u201d Brian Armstrong, Coinbase CEO\u2014who recently laid off 700 staffers due to AI\u2014said in a<\/span> lengthy social media post on X<\/span><\/a>. \u201cThis is a new way of working, and we need to leverage AI across every facet of our jobs.\u201d<\/span><\/p>\n

Other tech powerhouses, including Amazon, LinkedIn, Meta, Oracle, and Cloudflare, have announced layoffs, according to<\/span> Forbes<\/span><\/a><\/em>.<\/span><\/p>\n

Where Laid-Off Tech Workers Are Looking for Their Next Opportunity<\/span><\/h2>\n

Realtor.com<\/span><\/a>‘s cross-market search traffic shows that tech workers\u2014from high-net-worth execs with lucrative exit packages to lower-level employees\u2014are looking at other tech towns, with affordability a key factor driving their searches. However, staying put and looking in their current area are also options for those with deep roots and a higher chance of employment.<\/span><\/p>\n

Ben Mizes, president of Clever Real Estate, told Realtor.com:<\/span><\/p>\n

\u201cMost displaced tech workers will likely remain in the same region for much longer. Employees will remain where they have the most equity, such as a professional and social network, a spouse, their children, schools, and industry resources. Regions such as Silicon Valley, Seattle, and New York offer the best opportunities to find another high-paying tech job.\u201d<\/span><\/em><\/p>\n

Those looking to ease their cost of living “will likely choose cities that offer tech-adjacent affordability\u2014relatively less expensive housing, good schools, a good airport, and a good, not-too-large tech industry, which allows working in a tech-related area without feeling isolated,” Mizes adds.<\/span><\/p>\n

Realtor.com’s data shows Salt Lake City, Denver, and Raleigh are popular for many well-paid tech workers.<\/span><\/p>\n

“Salt Lake City appeared as the top destination for shoppers from Menlo Park in Q1 2026,\u201d Realtor.com economist Jiayi Xu explained. Xu noted that the share of buyers from Menlo Park\u2014one of the densest tech enclaves in Silicon Valley\u2014looking at that specific tech-friendly Utah market jumped to nearly 3.6% in early 2026, up from 0.6% a year earlier.\u00a0<\/span><\/p>\n

Similarly, nearly 70% of online home searches from Seattle looked to other states, up from 65% a year earlier, with Portland, Oregon, Coeur d\u2019Alene, Idaho, and Phoenix the most popular destinations.<\/span><\/p>\n

Why Tier Two Tech Cities Won\u2019t Work for Many Investors<\/span><\/h2>\n

For workers and investors alike seeking affordability and <\/span>cash flow<\/span><\/a>, many tier-two cities are not sensible relocation\/investment options, especially if remote or hybrid work is possible.<\/span><\/p>\n

While Utah\u2019s \u201cSilicon Slopes” is attracting tech talent to companies such as Adobe, Qualtrics, and Oracle, alongside growing offices for companies such as Workday and eBay, a recent report by local brokerage<\/span> Red Sign<\/span><\/a> notes that tech demand has kept home prices elevated.<\/span><\/p>\n

Though considerably more affordable than Silicon Valley or San Francisco, Zillow shows that the average home price in Salt Lake City is<\/span> $580,000<\/span><\/a>, and the average rent is <\/span>$1,600<\/span><\/a>, which clearly is not an equitable relationship for real estate investors<\/span>, though<\/span> variables exist in the wider metro area.<\/span><\/p>\n

The same is also true to a large extent in other secondary tech hot spots such as Denver and Raleigh\/Durham, <\/span>North Carolina<\/span><\/a>.<\/span><\/p>\n

For deep-pocketed investors who can buy with cash and avoid current mortgage rates, these are great buy-and-hold options for long-term <\/span>appreciation<\/span><\/a>. However, for leveraged investors relying on loans, the numbers won\u2019t work.<\/span><\/p>\n

Tech Cities Where Cash Flow Still Works<\/span><\/h2>\n

For tech workers and investors <\/span>looking for<\/span> more affordable landing spots, where rents are low and wages high, <\/span>a cluster of cities in the South and Midwest<\/span><\/a> is attracting qualified employees for prestigious jobs.<\/span><\/p>\n

Huntsville, Alabama: Aerospace and defense, with starter home prices<\/span><\/h3>\n

Huntsville has become a central hub for aerospace and defense, anchored by<\/span> NASA\u2019s Marshall Flight Center, Redstone Arsenal, Boeing, Lockheed Martin<\/span><\/a>, and numerous contractors and tech firms. Named a top city for tech talent by commercial real estate brokerage <\/span>CBRE<\/span><\/a>, <\/span>plenty of jobs are available for the qualified<\/span><\/a>, with mid- to senior-level engineering roles paying between<\/span> $120,000 and $170,000<\/span><\/a>.\u00a0<\/span><\/p>\n

Home prices average <\/span>$290,000<\/span><\/a>, and <\/span>the<\/span> average <\/span>rent is<\/span> about <\/span>$1,400<\/span><\/a>.<\/span><\/p>\n

Columbus, Ohio: Meta, Path Robotics, and Intel<\/span><\/h3>\n

\u201cColumbus is booming,\u201d Dennis DeMeyere, a former technical director at Google Cloud, who plans to open an AI-powered manufacturing company, Autonomous Production, near Columbus, told <\/span>the <\/span>New York Times<\/span><\/a><\/em>. \u201cIt\u2019s wild. Everything is under construction. It feels like the Bay Area felt 13 or 14 years ago.\u201d<\/span><\/p>\n

Columbus and central Ohio, in general, have become a booming tech hot spot, with major Silicon Valley players and newer start-ups opening manufacturing plants and offices. In fact, manufacturing job growth is up 4.4% between 2021 and 2024. A new airport terminal is under construction to welcome business travelers, and new modular housing is <\/span>being constructed<\/span> at a fast pace, the <\/span>Times <\/span><\/em>reports.<\/span><\/p>\n

The average Columbus house price is<\/span> $251,000<\/span><\/a>, according to Zillow, and rent averages around<\/span> $1,500\/month<\/span><\/a>, making it very affordable for both renters and investors. While cash flow is flat at the moment, appreciation and positive cash flow show potential if interest rates drop.<\/span><\/p>\n

San Antonio, Texas: Defense, tech, and cybersecurity, plus Toyota, Grupo Lala, and Siemens<\/span><\/h3>\n

The<\/span> affordable alternative to Austin<\/span><\/a>, San Antonio has seen a booming job market in defense tech and cybersecurity, driven by the University of Texas at San Antonio and Texas A&M. The average <\/span>cost of a<\/span> home in San Antonio is<\/span> $251,000<\/span><\/a>, and the average rent is <\/span>$1,610<\/span><\/a>.<\/span><\/p>\n

Pittsburgh, Pennsylvania: Google, Amazon, Duolingo, and Aurora Innovation<\/span><\/h3>\n

The nationally recognized computer science program at Carnegie Mellon University (CMU) has been a big driver for tech innovation in the city. NVIDIA, the<\/span> most valuable company in the world<\/span><\/a>, recently partnered with CMU and the University of Pittsburgh to launch a specialized community focused on robotics, autonomy, and AI, further enhancing the Steel City\u2019s tech credentials.<\/span><\/p>\n

For real estate investors, Pittsburgh remains supremely affordable. <\/span>The average home price here is around<\/span> $240,000<\/span><\/a>, and rent <\/span>averages<\/span> around<\/span> $1,500\/month<\/span><\/a>.<\/span><\/p>\n

Other affordable tech cities where investors could break even with current interest rates include:<\/span><\/p>\n