{"id":72251,"date":"2021-03-17T05:00:14","date_gmt":"2021-03-17T12:00:14","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=72251"},"modified":"2021-03-17T10:34:06","modified_gmt":"2021-03-17T17:34:06","slug":"migration-affordability-tool-disposable-income","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/migration-affordability-tool-disposable-income\/","title":{"rendered":"Remote Tech Workers Moving From San Francisco to Las Vegas Would Have $40,000 More Disposable Income in Their New Hometown"},"content":{"rendered":"

Redfin\u2019s migration affordability calculator shows that a move from Seattle to Phoenix would yield $12,000 more in annual disposable income for the typical tech worker, but they would break even if they were to take a 10% pay cut.<\/h2>\n

The typical remote-tech worker who moves from San Francisco<\/a> to Las Vegas<\/a> and keeps their job would have roughly $40,000 more annual disposable income in their new hometown: $47,000 in San Francisco<\/a> versus $87,000 in Las Vegas<\/a>. A move from San Francisco<\/a> to Austin<\/a> would yield $34,000 more in annual disposable income, and a move to Sacramento<\/a> would yield $28,000 more.<\/p>\n

If the same tech worker from San Francisco<\/a> were to take a 10% pay reduction, they would have $28,000 more disposable income if they moved to Las Vegas<\/a>, $22,000 more if they moved to Austin<\/a>, and $16,000 more if they moved to Sacramento<\/a>.<\/p>\n

That\u2019s according to a Redfin analysis of disposable income by metro area, based on typical pay by occupation. Disposable income is defined as what\u2019s left over after paying for housing, HOA fees, property taxes, state and local taxes, utility bills and transportation. The term \u201ctech worker\u201d is used in this report to refer to \u201ccomputer and mathematical occupations.\u201d The analysis includes a 10% pay reduction because many tech companies, including Facebook, Twitter<\/a> and Redfin, are localizing pay for people relocating away from the Bay Area and Seattle<\/a>.<\/p>\n

Median salary, mortgage costs & disposable income in San Francisco, Las Vegas, Austin & Sacramento<\/h3>\n\n\n\n\n\t\n\n\t\n\t\n\t
<\/td>San Francisco, CA<\/a>\u00a0<\/th>Las Vegas, NV<\/a><\/th>Las Vegas, NV<\/a> (with 10% pay cut)<\/th>Austin, TX<\/a><\/th>Austin, TX<\/a> (with 10% pay cut)<\/th>Sacramento, CA<\/a><\/th>Sacramento, CA<\/a> (with 10% pay cut)<\/th>\n<\/tr>\n<\/thead>\n
Salary for tech worker (with 10% pay cut if applicable)\u00a0<\/td>$116,900<\/td>$116,900<\/td>$105,210<\/td>$116,900<\/td>$105,210<\/td>$116,900<\/td>$105,210<\/td>\n<\/tr>\n
Mortgage costs<\/td>$48,000<\/td>$11,000<\/td>$11,000<\/td>$13,000<\/td>$13,000<\/td>$17,000<\/td>$17,000<\/td>\n<\/tr>\n
Disposable income after paying for mortgage & other living expenses<\/td>$46,900<\/td>$86,700<\/td>$75,000<\/td>$80,800<\/td>$69,100<\/td>$75,000<\/td>$63,300<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

The Bay Area is perennially at the top of the list of places with the biggest net outflow<\/a>\u2014people leaving versus people moving in\u2014of Redfin.com home searchers. The Bay Area has lost even more residents since the onset of the pandemic and the surge in remote work. Las Vegas<\/a>, Austin<\/a> and Sacramento<\/a> are all among the 10 most popular destinations for Redfin.com users leaving the Bay Area. Those places have been particularly popular during the pandemic as newly remote tech workers move to areas with more affordable and spacious homes.\u00a0<\/p>\n

\u201cThe surge in remote work has enabled many people who are able to work from home to relocate, usually to places with more affordable housing than tech hubs like San Francisco<\/a> and Seattle<\/a>,\u201d said Redfin Chief Economist Daryl Fairweather<\/a>. \u201cThe move typically pays off financially for people leaving the Bay Area because homes are so exorbitantly priced. But remote workers don\u2019t always come out ahead when they leave expensive coastal cities, especially when they take a pay cut. Home prices are rising across the country and other living expenses can be more pricey in other parts of the country; for instance, Texas has particularly high property taxes. Moving to a new location also comes with benefits and drawbacks that you can\u2019t put a price tag on, such as weather, culture and proximity to family and friends.\u201d\u00a0<\/p>\n

Redfin\u2019s migration affordability tool is available for dozens of metros. The tool is meant as a starting point for people considering moving from one metro area to another, particularly those with the option to work remotely. Actual housing and living costs vary depending on priorities and personal preferences, and several factors go into the calculation of whether one area is more affordable than another for any given individual.\u00a0<\/p>\n

Use the dropdown menu below to select your origin and occupation, and see the difference in disposable income between origin and a list of possible destinations. The list of occupations is broad; click here<\/a> for additional details on which occupation fits your specific career. You can also adjust income, from the same income in the origin and destination to a pay adjustment of any percentage.<\/p>\n