June 9, 2020
Image: misterfarmer, Pixabay
Good morning! This Tuesday, data shows that tech workers are leaving Silicon Valley, Vroom prepares for its IPO, and a company you've never heard of is worth more than Ford. Want Index in your inbox each morning? Subscribe here.
As of 4:55 a.m. PDT: Nasdaq Futures: -0.40% | Euro 600: -1.07% | Nikkei: -0.38% | Hang Seng: 1.13%
There's been a lot of speculation as to what the future of work means for where people actually live: whether people will escape the sky-high prices of Silicon Valley in favor of gigantic yards in Utah instead. New data suggests that is actually happening — to an extent, at least.
The biggest drops have been in Mountain View and Menlo Park, right by some of the biggest tech campuses, where rents are down 14% to 15% — signaling that some of those employees don't expect to ever return to the office.
But California won't become a ghost town just yet. Though Georgiades said some people are leaving the state — Salt Lake City, Scottsdale, Denver and Austin are popular destinations — most are moving within it, to cheaper areas like Oakland (which saw rents rise 4.9% year-on-year).
As for the impact on rental prices? Georgiades thinks you should expect a decrease, but nothing too dramatic.
Last week, electric and hydrogen-fuel-cell truck startup Nikola went public. The company, which expects zero revenue this year, has seen Tesla-like levels of enthusiasm for its stock: Ahead of markets opening this morning, the company was worth over $30 billion. As Bloomberg notes, that's more than Ford, which sold 2.4 million vehicles last year. Not that markets are malfunctioning or anything.