A TikTok user lashed out at California tech workers for invading his city, leading to inflated prices and low housing supply.
In a clip that has racked up more than half a million views, Dani, an Austin native, chastised those who fled to Texas during the pandemic and bought cheap homes, which they then demolished, converted into expensive Airbnbs or flipped for profit.
He placed much of the blame on people who fled the Golden State, attracted by the low cost of living and the absence of a state income tax.
“They’re trying to sell houses at incredibly inflated prices, and that’s not going to work,” Dani said.
The real estate market, he lamented, was “cooked.”
Dani, an Austin native, chastised California tech workers for “cooking” the real estate market in her hometown. She blamed those who fled to Texas during the pandemic and bought cheap homes to rent out as Airbnbs or resell them for a profit.
Last June, Austin rentals were among the most expensive in the country (pictured: an Airbnb listed in May 2024 for $3,942 per night)
Dani said many newcomers were leaving amid widespread tech layoffs, without much return on their housing investments (pictured: an Airbnb listing in May 2024 for $3,920 a night).
Austin had the largest net influx of tech workers of any major U.S. city between May 2020 and April 2021, according to data from LinkedIn users.
And while it is debated whether there was a significant ‘exodus’ of Californians to Texas (studies from the University of California found otherwise), San Francisco saw a sharp increase in the number of people leaving.
A March 2021 policy report from the California Policy Lab found that city departures between the second and fourth quarters of 2020 were 31 percent higher than during the same period in 2019.
And data from the U.S. Census Bureau shows California lost 75,423 residents in 2023, following a consistent pattern that began during the pandemic.
Dani’s claim about Airbnb’s skyrocketing prices also carries some weight. Last June, Austin rents were among the most expensive in the country.
A study by ChamberofCommerce.org found that rentals in the city had an average daily rate of $373 across all size properties. An average one-bedroom rental in Austin costs $127 per night, while two-bedroom properties cost an average of $203.
In her viral TikTok, Dani also noted that residents, including those who arrived during the pandemic, are now leaving the city amid a turbulent tech job market.
“We’re having a lot of layoffs in the tech sector; the economy of this city is based on technology, so a lot of people are moving away,” he said.
Tech companies have historically maintained a foothold in the Texas capital (pictured: Apple’s original campus at 5501 West Parmer Lane in Austin)
Tesla opened its ‘Giga Texas’ factory east of the city in April 2022, but now plans to lay off 2,688 workers starting in June.
Austin has long been hailed as a pioneer of innovation, starting with the genesis of IBM and Texas Instruments in the 1960s. It is the birthplace of Dell, which went on to become one of the largest computer manufacturers.
Despite focusing on Silicon Valley and the Bay Area, the tech giants have also maintained a foothold in the Texas state capital.
Google leased Block 185, a sail-shaped skyscraper on the banks of the Colorado River, in 2019. The company was supposed to move in sometime this year, but the timeline is in play amid widespread layoffs.
Meanwhile, Apple shows no signs of slowing down after quietly leasing an entire office building in the Westlake neighborhood. This followed a $240 million investment in its north Austin campus, which is set to open in March of next year.
Automaker Tesla opened its ‘Giga Texas’ factory east of Austin in April 2022, but now plans to lay off 2,688 workers starting in June.
Companies like Apple and Tesla were offered packages worth tens of millions of dollars in property and payroll tax refunds as incentives from the city. However, that may not be enough to make them stay.
After moving its corporate headquarters from the Bay Area to Austin, business software and services company Oracle plans to relocate.
As tech companies leave the city, so do their workers, and few see much return on their housing investments.
Home prices in the city increased 60 percent from 2020 to 2022 and, despite experiencing an 11 percent drop in 2024, prices remain near record levels.
The initial influx of newcomers during the pandemic also boosted apartment construction. There has been so much that rental rates have decreased in Austin by 7.4 percent since last year.
These conditions make it even more difficult to sell a property, Dani noted, as many would rather rent an apartment than shell out much more to buy or rent a home.
“This is what happens when you try to take advantage of people who are simply trying to buy in your city or state what they have lived their entire lives,” he declared.
