A TikTok user lambasted California tech workers for invading her city, leading to inflated prices and a low supply of homes.

In a clip that has racked up over half a million views, Austin native Dani berated those who fled to Texas during the pandemic and bought up cheap homes, which they later demolished, turned into pricey Airbnbs or flipped for a profit.

She placed most of the blame on people who fled the Golden State, lured in by the low cost of living and absence of a state income tax.

‘They’re trying to sell houses for crazy, crazy inflated prices, and that’s not going to work,’ Dani said.

The housing market, she lamented, was ‘cooked’. 

Austin native Dani berated California tech workers for ‘cooking’ the housing market in her home city. She placed the blame on those who fled to Texas during the pandemic and bought up cheap homes to rent as Airbnbs or flip for a profit

Last June, Austin’s rentals ranked among the most expensive in the country (pictured: an Airbnb listed in May 2024 for $3,942 per night)

Dani said many new arrivals were leaving amid sweeping tech layoffs, without much of a return on their housing investments (Pictured: an Airbnb listed in May 2024 for $3,920 per night)

Austin had the highest net inflow of tech workers of any major city in the United States from May 2020 to April 2021, according to LinkedIn user data.

And while it is debated whether there was a significant ‘exodus’ of Californians into Texas – studies from the University of California determined otherwise – San Francisco saw a sharp increase in people leaving.

A March 2021 policy brief from the California Policy Lab concluded that departures from the city in the second through fourth quarters of 2020 were 31 percent higher than during the same period in 2019.

And data from the U.S. Census Bureau shows that California lost 75,423 residents in 2023, following a steady pattern that began during the pandemic.

Dani’s claim about skyrocketing Airbnb prices holds some weight as well. Last June, Austin’s rentals ranked among the most expensive in the country.

A study by ChamberofCommerce.org found that rentals in the city boasted an average daily rate of $373 across all property sizes. An average one-bedroom rental in Austin cost $127 per night, while two-bedroom properties averaged $203.

In her viral TikTok, Dani also pointed out that residents, including those who arrived during the pandemic, are now leaving the city amid a turbulent tech job market.

‘We’re having a ton of tech layoffs – this city’s economy is based in tech, so a lot of people are moving away,’ she said.

Tech companies have historically maintained a foothold in the Texas capital (Pictured: the original Apple campus at 5501 West Parmer Lane in Austin) 

Tesla opened its ‘Giga Texas’ factory east of the city in April 2022, but now plans to lay off 2,688 workers beginning in June

Austin has long been hailed as a pioneer of innovation, beginning with the genesis of IBM and Texas Instruments in the 1960s. It is the birthplace of Dell, which went on to become one of the largest computer manufacturers.

Despite concentrating in Silicon Valley and the Bay Area, tech giants have also maintained a foothold in the Texas state capital.

Google leased Block 185, a sail-shaped skyscraper on the bank of the Colorado River, in 2019. The company was supposed to move in sometime this year, but the timeline hangs in the balance amid sweeping layoffs.

Apple, meanwhile, shows no signs of slowing down after quietly leasing an entire office building in the Westlake neighborhood. This followed a $240 million investment in its North Austin campus, which is set to open in March of next year.

Auto manufacturer Tesla opened its ‘Giga Texas’ factory east of Austin in April 2022, but now plans to lay off 2,688 workers beginning in June.

Companies including Apple and Tesla were offered packages worth tens of millions of dollars in property and payroll tax reimbursements as an incentive from the city. However, that may not be enough to get them to stay.

After relocating its corporate headquarters from the Bay Area to Austin, business software and services company Oracle has plans to move out.

As tech companies leave the city, so do their workers – and few are seeing much of a return on their housing investments. 

Home prices in the city increased 60 percent from 2020 to 2022, and despite seeing an 11 percent drop in 2024, the prices remain near record-high levels.

The initial influx of newcomers during the pandemic also sparked the construction of apartments. There has been so much of it that rental rates decreased in Austin by 7.4 percent since last year.

These conditions make it even more difficult to sell property, Dani pointed out, as many would rather rent an apartment than shell out considerably more to buy or lease a home.

‘This is what you get for trying to take advantage of people who are just trying to buy in their city or their state that they’ve lived in their whole life,’ she declared.

LOS ANGELES – Ditching the Golden State for another U.S. state? You’re not alone. 

A study conducted by the U.S. Census Bureau revealed tens of thousands of Californians sought life elsewhere. Some reasons why people are leaving California include: high cost of living, lack of job opportunities, increasing tax burdens, and regulations. 

Overall, 75,423 Californians left in 2023. Many residents are moving to other parts of the country for better opportunities, cheaper homes, and different laws.

But before you pack your bags and set your sights on a new beginning, don’t forget there are measures you need to take – otherwise, you’ll still have to pay those notorious California taxes. 

SUGGESTED: More insurance companies leaving California

California has nine state income tax rates, ranging from 1% to 12.3%. Your tax rate and tax bracket depend on your taxable income and filing status.

California’s Franchise Tax Board has the ability to conduct residency audits and is responsible for monitoring the fine line between residents and non-residents. The FTB has the right to investigate how and when you left. 

When it comes to California state taxes, there are three residency statuses: resident, part-year resident and nonresident. The FTB determines what portion of your income the state will tax. According to state law, you are presumed to be a California resident if you are in California for more than nine months.  

SUGGESTED: Here’s how many people moved out of California in 2023

The IRS has the ability to audit 3 or 6 years, but in California – that time frame expands to essentially, forever.

California uses several factors to determine your residency, like the amount of time you spent in the Golden State versus outside. Other factors the FTB considers include:

• The location of the taxpayer’s spouse and children;
• The location of the taxpayer’s principal residence;
• Where the taxpayer was issued a driver’s license;
• Where the taxpayer’s vehicles are registered;
• Where the taxpayer maintains professional licenses;
• Where the taxpayer is registered to vote;
• The locations of banks where the taxpayer maintains accounts;
• The locations of the taxpayer’s doctors, dentists, accountants and attorneys;
• The locations of church, temple or mosque, professional associations, and social and country clubs of which the taxpayer is a member;
• The locations of the taxpayer’s real property and investments;
• The permanence of the taxpayer’s work assignments in California; and
• The location of the taxpayer’s social ties. FTB Pub. 1031, Guidelines for Determining Resident Status (2010).

But the biggest factor of all, it seems, is your physical presence. Again, California presumes you are a resident if you spend more than 9 months in the state. 

If you spend 6 months or less, you may qualify as a “seasonal visitor,” but that’s only if you don’t work while you are in the state, and meet other criteria.

SUGGESTED: People leaving California moving here in record numbers, data shows

Even part-year residents are still taxed. You pay tax on “all worldwide income received while you are a California resident” and “income from California sources while you were a nonresident,” according to the FTB.

In order to avoid paying taxes, you must prove you have left California – but that means more than just buying a home in another state. You must prove you have completely severed your ties to the Golden State and that you have permanent connections to another state. 

And even if you do that, you may still owe taxes based on other factors – for example, if your spouse still lives in California, expect to pay up as community property rules in California treat half your income as half of your spouse’s.

SUGGESTED: More Americans are fleeing the country and moving to Europe

If you’re a California resident but looking to chuck that and settle elsewhere, proceed with care and remember to take precautions. For example – getting a new state driver’s license and surrendering your old California one, moving and registering your car in your new state, and registering to vote in your new state while canceling your old California voter registration. You can learn more on the FTB’s website.

A study conducted by the U.S. Census Bureau indicates the top 5 states former Californians moved to were Texas, Arizona, Florida, Washington and Nevada. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming all do not impose state income taxes.