The tech industry is undergoing a seismic shift, driven by artificial intelligence and resulting in massive layoffs. With over 100,000 jobs lost this year alone, the question for real estate investors is where these high-net-worth professionals are relocating and whether following them makes financial sense.
The AI revolution is not just transforming industries; it’s redefining employment landscapes. Tech jobs, once considered bulletproof, are now among the first to feel the impact. Companies like Coinbase, Amazon, LinkedIn, Meta, Oracle, and Cloudflare have all announced significant layoffs, citing AI as the primary reason.
Where Are Laid-Off Tech Workers Heading?
Data from reveals that tech workers, from executives with lucrative exit packages to lower-level employees, are exploring new opportunities in other tech hubs. Affordability is a key factor driving their searches, but many are also choosing to stay in their current regions due to established networks and resources.
Ben Mizes, president of Clever Real Estate, notes that most displaced tech workers will likely remain in the same region for the foreseeable future. “Employees will remain where they have the most equity, such as a professional and social network, a spouse, their children, schools, and industry resources,” Mizes told. Regions like Silicon Valley, Seattle, and New York offer the best opportunities for finding another high-paying tech job.
For those looking to ease their cost of living, cities like Salt Lake City, Denver, and Raleigh are gaining popularity. Salt Lake City, in particular, has seen a significant increase in interest from tech workers in Menlo Park. economist Jiayi Xu noted that the share of buyers from Menlo Park looking at Salt Lake City jumped to nearly 3.6% in early 2026, up from 0.6% a year earlier.
Challenges and Opportunities in Tier Two Tech Cities
While tier-two tech cities offer affordability and a lower cost of living, they may not be the best options for real estate investors, especially if remote or hybrid work is possible. Cities like Salt Lake City, Denver, and Raleigh/Durham have seen elevated home prices due to tech demand, making them less attractive for investors relying on loans.
For deep-pocketed investors who can buy with cash, these cities offer great buy-and-hold options for long-term appreciation. However, for leveraged investors, the numbers may not work in their favor. The average home price in Salt Lake City is $580,000, with an average rent of $1,600, which does not present an equitable relationship for real estate investors.
Tech Cities with Strong Cash Flow Potential
For tech workers and investors seeking more affordable landing spots with low rents and high wages, cities in the South and Midwest are attracting qualified employees for prestigious jobs. Huntsville, Alabama, Columbus, Ohio, San Antonio, Texas, and Pittsburgh, Pennsylvania, are among the top destinations offering a balance of affordability and opportunity.
Huntsville, known for its aerospace and defense industries, offers starter home prices averaging $290,000 and an average rent of about $1,400. Columbus, Ohio, is booming with major tech players and startups opening offices and manufacturing plants. The average home price here is $251,000, with rent averaging around $1,500 per month.
San Antonio, Texas, provides an affordable alternative to Austin, with a thriving job market in defense tech and cybersecurity. The average home price is $251,000, and the average rent is $1,610. Pittsburgh, Pennsylvania, benefits from a strong tech base driven by Carnegie Mellon University and major companies like Google, Amazon, and Duolingo. The average home price is around $240,000, with rent averaging $1,500 per month.
Other affordable tech cities where investors could break even with current interest rates include Chattanooga, Tennessee; Boise, Idaho; Milwaukee, Wisconsin; and St. Louis, Missouri.
The convergence of the cost-of-living crisis and the AI revolution has created a unique dynamic in the tech industry. While mass layoffs are occurring, tech is not restricted to traditional hubs like Silicon Valley, San Francisco, and Seattle. Companies are setting up shop in more affordable parts of America, offering good salaries and attracting qualified employees.
For real estate investors, the key is to look for cities with a strong tech base supported by other stable sources of employment, such as education, healthcare, and governmental jobs. These cities are likely to provide a strong tenant base, even if tech workers move to other cities.
