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The Realignment of America - Why The Future of Tech is Outside the Valley
By Rob | May 8, 2007
In today’s Wall Street Journal, Michael Barone discusses the realignment of America. It seems that Americans are moving out of the major coastal population centers and transplanting to the Heartland.
The nation’s center of gravity is shifting: Dallas is now larger than San Francisco, Houston is now larger than Detroit, Atlanta is now larger than Boston, Charlotte is now larger than Milwaukee. State capitals that were just medium-sized cities dominated by government employees in the 1950s–Sacramento, Austin, Raleigh, Nashville, Richmond–are now booming centers of high-tech and other growing private-sector businesses. San Antonio has more domestic than immigrant inflow even though the border is only three hours’ drive away. The Interior Boomtowns generated 38% of the nation’s population growth in 2000-06.
Dallas is larger than San Francisco. Interesting.
A “flat” world is making it easier to work from anywhere, and as the population ages, quality of life matters more than it did before. Creating new technology doesn’t require you to be in the Valley. Some would even argue that you can build better products without the influence of the Valley’s hyper-engineering culture. As a result, techies are moving to places with cheaper housing and more kid-friendly communities.
If demography is destiny, the future of tech is outside the valley.
Topics: Ideas |
May 8th, 2007 at 10:33 pm
Very interesting stuff. I moved to Texas in Feb from Calgary (a booming Canadian city) and I was absolutely shocked at the real estate prices. What would have cost $400K in Calgary would run around $160K in Texas.
From my first hand experience in Texas the exidous is very real. On any given day I probably see at least a dozen license plates from California and Florida. People are simply cashing out of their 1,500 square foot homes in these states, pocketing $800K plus, and starting over.
The traditional economies of these locations are changing a lot in the process. It won’t be long before decent tech communities start popping up in these places. Like you said Rob, this will likely breed applications and products suited to a much broader demographic. I look forward to watching it unfold.
Good read.
May 9th, 2007 at 12:01 am
Rob,
Clearly is changing. And it’s obvious if you analize the cost of a programmer in Silicon Valley and in India. Everyone has to pay for mortgage every month, and the cost of the houses in SF are really outrageous. Internet democratized access to information, so now the playing field is leveled. Creativity is gonna be the clear difference now.
May 9th, 2007 at 7:21 pm
There is much to be said for proximity to other ideas and smart people working in your industry. Will it become more level? Yes. Will San Francisco stop being the Tech Capital of the world? Not in the short-term for sure.