Redfin CEO: Silicon Valley Will Soon See a ‘Mass Migration’ of Tech Companies and Talent,

Photo by Randy Stewart/Flickr

On Wednesday, Glenn Kelman, the Redfin CEO, said that the search of Amazon for a second headquarters outside of Seattle is only the beginning of a tech exodus from expensive coastal cities to cheaper inland locations.

Kelman informed “Power Lunch” of CNBC: Silicon Valley is going to leave Silicon Valley — that’s already happened.

“The technology companies, the Wall Street companies, they’re chasing the talent, [and] the talent is chasing affordable housing.”

Kelman is the head of the online real estate brokerage and data firm. He forecasted an accelerating shift out of coastal cities as homeowners attempt to avoid the higher tax rates on the GOP tax bill that was recently passed.

He said that densely populated and pricey cities are already losing businesses and residents.

“Google employs more engineers outside of Silicon Valley than it does in Silicon Valley, and if Google can’t afford Silicon Valley, then no one can.”

Kelman stated that the “mass migration” to the centre of the country is populating cities that were once “economically dead five or 10 years ago.”

He said that cities such as San Antonio, Houston, and Denver are primed to be the next hubs.

“It used to be that in California we owned the future. We felt like everything was happening here first,” said Kelman. “And now you see that swagger, that confidence in the center of the country. People in Detroit, people in Texas think they own the future.”