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AI-powered layoffs are shaking up the once-bulletproof tech job market, with more than 100,000 layoffs so far this year alone. For real estate investors, the burning question is where all the high-net-worth talent is going—assuming they are leaving established hubs such as Silicon Valley and Seattle—and whether following them makes financial sense.
“A New Way of Working”
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.
According to a recent report by global outplacement and executive coaching firm Challenger, Gray & Christmas, AI has become the leading reason companies cite for layoffs.
“In short: AI is bringing a profound shift in how companies operate, and we’re reshaping Coinbase to lead in this new era,” Brian Armstrong, Coinbase CEO—who recently laid off 700 staffers due to AI—said in a lengthy social media post on X. “This is a new way of working, and we need to leverage AI across every facet of our jobs.”
Other tech powerhouses, including Amazon, LinkedIn, Meta, Oracle, and Cloudflare, have announced layoffs, according to Forbes.
Where Laid-Off Tech Workers Are Looking for Their Next Opportunity
Realtor.com‘s cross-market search traffic shows that tech workers—from high-net-worth execs with lucrative exit packages to lower-level employees—are 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.
Ben Mizes, president of Clever Real Estate, told Realtor.com:
“Most 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.”
Those looking to ease their cost of living “will likely choose cities that offer tech-adjacent affordability—relatively 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.
Realtor.com’s data shows Salt Lake City, Denver, and Raleigh are popular for many well-paid tech workers.
“Salt Lake City appeared as the top destination for shoppers from Menlo Park in Q1 2026,” Realtor.com economist Jiayi Xu explained. Xu noted that the share of buyers from Menlo Park—one of the densest tech enclaves in Silicon Valley—looking at that specific tech-friendly Utah market jumped to nearly 3.6% in early 2026, up from 0.6% a year earlier.
Similarly, nearly 70% of online home searches from Seattle looked to other states, up from 65% a year earlier, with Portland, Oregon, Coeur d’Alene, Idaho, and Phoenix the most popular destinations.
Why Tier Two Tech Cities Won’t Work for Many Investors
For workers and investors alike seeking affordability and cash flow, many tier-two cities are not sensible relocation/investment options, especially if remote or hybrid work is possible.
While Utah’s “Silicon 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 Red Sign notes that tech demand has kept home prices elevated.
Though considerably more affordable than Silicon Valley or San Francisco, Zillow shows that the average home price in Salt Lake City is $580,000, and the average rent is $1,600, which clearly is not an equitable relationship for real estate investors, though variables exist in the wider metro area.
The same is also true to a large extent in other secondary tech hot spots such as Denver and Raleigh/Durham, North Carolina.
For deep-pocketed investors who can buy with cash and avoid current mortgage rates, these are great buy-and-hold options for long-term appreciation. However, for leveraged investors relying on loans, the numbers won’t work.
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Tech Cities Where Cash Flow Still Works
For tech workers and investors looking for more affordable landing spots, where rents are low and wages high, a cluster of cities in the South and Midwest is attracting qualified employees for prestigious jobs.
Huntsville, Alabama: Aerospace and defense, with starter home prices
Huntsville has become a central hub for aerospace and defense, anchored by NASA’s Marshall Flight Center, Redstone Arsenal, Boeing, Lockheed Martin, and numerous contractors and tech firms. Named a top city for tech talent by commercial real estate brokerage CBRE, plenty of jobs are available for the qualified, with mid- to senior-level engineering roles paying between $120,000 and $170,000.
Home prices average $290,000, and the average rent is about $1,400.
Columbus, Ohio: Meta, Path Robotics, and Intel
“Columbus is booming,” Dennis DeMeyere, a former technical director at Google Cloud, who plans to open an AI-powered manufacturing company, Autonomous Production, near Columbus, told the New York Times. “It’s wild. Everything is under construction. It feels like the Bay Area felt 13 or 14 years ago.”
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 being constructed at a fast pace, the Times reports.
The average Columbus house price is $251,000, according to Zillow, and rent averages around $1,500/month, 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.
San Antonio, Texas: Defense, tech, and cybersecurity, plus Toyota, Grupo Lala, and Siemens
The affordable alternative to Austin, 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 cost of a home in San Antonio is $251,000, and the average rent is $1,610.
Pittsburgh, Pennsylvania: Google, Amazon, Duolingo, and Aurora Innovation
The nationally recognized computer science program at Carnegie Mellon University (CMU) has been a big driver for tech innovation in the city. NVIDIA, the most valuable company in the world, 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’s tech credentials.
For real estate investors, Pittsburgh remains supremely affordable. The average home price here is around $240,000, and rent averages around $1,500/month.
Other affordable tech cities where investors could break even with current interest rates include:
Final Thoughts
The fact that the cost-of-living crisis and the AI revolution are happening at the same time has created a unique dynamic: mass layoffs in an industry where only the extremely well-paid can afford to live in its epicenters.
However, tech is not restricted to Silicon Valley, San Francisco, and Seattle. It touches almost every industry. It makes sense, then, that in an attempt to maximize profits, companies are setting up shop in some of the most affordable parts of America: the Midwest and South.
The positive news for investors is that these jobs come with good salaries. However, given the ephemeral nature of employment these days, under 1 in 5 tech workers—especially Gen Zs in software—are job hoppers, moving from one company to the next, according to a recent report. This means they are less likely to buy and more inclined to rent.
When choosing a tech-friendly city in which to invest, look for cities that not only have a strong tech base but are supported by other stable sources of employment, such as education, healthcare, and governmental jobs, which are likely to provide a strong tenant base, even if your tech worker moves to another city.
