‘I'm Not as Stressed Out’: During the Pandemic, Angelenos Tried Living Elsewhere. Many Aren’t Moving Back

Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

‘I'm Not as Stressed Out’: During the Pandemic, Angelenos Tried Living Elsewhere. Many Aren’t Moving Back

Editor's note: This is the second of a two-part series. Yesterday: Why New Yorkers and San Francisco tech workers have been moving to L.A. during the pandemic.

In late February, Aja Signor relocated from San Francisco to Venice Beach to start a new job as design director at an early-stage startup, Robin Games. She rented a one-bedroom apartment for $3,100 a month that was a pleasant 15-minute stroll to the beach one direction and 15 minutes to her office on Abbot Kinney the other way.


Three weeks later, everything changed. Robin Games abruptly closed its doors and the CEO said employees could work remotely as long as they wanted.

Signor started to hate everything about where she was living: the cramped elevator she had to ride up to her apartment, the neighbor who picked up smoking to "deal with the pandemic" and the hordes of tourists descending on Venice. "My neighborhood was packed with people not wearing masks and not doing social distancing," she said.

At the urging of her sister, Signor decided to go live with her family in Las Vegas for what she thought would be a temporary stay. She ended up liking it so much she broke her lease and plans to never live in L.A. again. In fact, in July, she did something she never would have been able to do in L.A. unless the startup she worked at had a lucrative exit and her stock options ballooned in value – she bought a roomy house.

"I had lived in California so long that I had given up owning a place of my own," Signor said. "But in Vegas the property is so cheap."

Instead of shelling out over $3,000 a month to rent a cramped apartment, Signor is now paying a mortgage costing a thousand dollars less for a four-bedroom home on a half acre of land with her own pool and hot tub.

"I can have a karaoke room, a dance room and a guest room," Signor marveled. "This could never happen in L.A."

Even as a tech worker at the top of her field, Signor always felt financially stretched in California, but in Nevada — on top of much cheaper housing costs — there is no state income tax. "That's like giving yourself a raise," she added.

Signor is part of a wave of L.A. residents in the tech and startup world who have left during the pandemic, accelerating a yearslong trend of migration to cheaper inland cities like Las Vegas, Sacramento and Phoenix. While people abandoning New York and San Francisco get most of the headlines, L.A. is also experiencing an exodus of residents.

Real Estate service Redfin estimates 12,405 departed in July alone and, according to an unscientific survey of hundreds of tech workers conducted this month by the employment service Blind, 35% have moved from L.A, a much higher percentage than New York or San Francisco.

dot.LA spoke to more than a half a dozen former Angelenos who departed during the pandemic. Like Signor, suddenly able to work from anywhere, they were attracted to other cities because of cheaper housing costs, lower taxes and, in many cases, closer proximity to family.

"We will pay 30 percent of the rent we were paying before," said Emily Best, founder and CEO of Seed&Spark. She, her husband and their two young kids used to live in downtown L.A., a short walk away from her office. But, reached via telephone, she said they were in the midst of driving across the country to live in a cabin in rural New York near relatives.

"We were in a rat race in L.A., trying to make enough money to live," Best said. "Every year it felt farther out of reach. We started having conversations about how to get off that hamster wheel and this pushed off over the edge. It's been really nice not to be so stressed out about money."

Best says her company will never go back to the sunlit and brick exposed corner workspace she opened two years ago downtown.

"That was the most painful for me: giving up the office," said Best. "That was our first real office."

Putting sentimentality aside, she is permanently taking her company fully remote. "We've already proven that everything can be done virtually," she said. "We are never going back to L.A. I don't see why we would come back."

For people like Best and Signor, COVID-19 was a life altering event that suddenly made them want to leave L.A. For others, like Jenn and Justin Welsh, the pandemic was the catalyst for a move they were already considering. Both left high-profile Santa Monica startups in recent years to start their own consulting practices. Realizing they could work from anywhere, they wondered why they were still paying L.A. housing prices.

"We wanted to make a dramatic change to our financial situation," said Jenn Welsh. "The kind of house we wanted in L.A. would be $3 million."

There were also other considerations. The Welsh's, who lived in Leimert Park, grew tired of spending hours in traffic just to have dinner with friends. (Though roadways have been more empty during the pandemic, a study last year by the Texas A&M Transportation Institute found L.A. has the worst traffic in the country, with commuters wasting an average of 119 hours in traffic a year.)

"One of my best friends lives in Pasadena," Jenn Welsh said. "She had to spend the night when she would visit. The traffic was debilitating."

Over the summer, the Welsh's sold their home in Leimert Park and bought a place in Nashville, where the median house goes for $299,838, compared to $764,528 in L.A., according to Zillow.

"We doubled the size of our house and reduced our mortgage by half," said Justin Welsh.

They say they've been impressed by Nashville's "warm hospitality" and have already made friends who are only a quick 15-minute drive away. They miss parts of L.A. – the weather, sushi and Mexican food – but have no regrets.

"L.A. is L.A.," said Justin Welsh. "It's paradise. It has access to everything you could want. I miss our friends. But I certainly don't miss the cost."

The Welsh's say they can always visit L.A. when the pandemic is over and others, like Signor, the design director who moved from Venice to Las Vegas, plan to return more frequently to maintain connections to their company and professional networks.

"I'd be dumb not to worry about that," Signor says, of living away from the tech scene. That is why she worked out an arrangement with her boss to spend one week a month back in Los Angeles, staying in an Airbnb once her office reopens.

"I'm not giving up on L.A.," she said. "But I think I'm doing some of my best work of my career right now because I don't have to spend time commuting and I'm not spending as much money so I'm not as stressed out."

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🍵☕️Top 6 Coffee Alternatives for Enhanced Productivity

In the fast-paced world of startups and venture capital in Los Angeles, maintaining peak productivity is essential for founders and investors alike. As the hustle intensifies, many are seeking alternatives to traditional coffee that not only provide a sustained energy boost but also support overall health and well-being. The following list highlights some of the top-rated coffee alternatives that can enhance focus and productivity while minimizing the adverse effects of caffeine. These options incorporate adaptogens, superfoods, and gut-friendly ingredients, making them ideal choices for those looking to optimize their performance without the afternoon crash.


Matcha

Image Source: Jade Leaf Matcha

Matcha is a finely ground green tea that offers a moderate amount of caffeine, along with L-theanine, which promotes relaxation without drowsiness. This combination can enhance focus and concentration, making matcha a suitable alternative for those looking to boost productivity without the jitters of coffee.

Popular Brands: ReNude Chaga Matcha (60 mg caffeine), Golde Pure Matcha (60 mg caffeine), Organic Ceremonial Matcha - Teahouse Edition (30 mg caffeine)


Dandelion Root Coffee

Image Source: Amazon

Dandelion root coffee is a caffeine-free alternative that mimics the taste of coffee. It is known for its potential to support liver health and digestion, which can contribute to overall well-being and productivity. The drink can help avoid the acidity and jitters that often accompany regular coffee, making it a gentler option for those sensitive to caffeine.

Popular Brands: Dandy Blend (0 mg caffeine), Teeccino Dandelion Dark Roast (0 mg caffeine)


Adaptogenic Drinks

Image Source: MUD\WTR Masala Chai

Adaptogenic beverages, which include ingredients like ashwagandha, reishi, and maca, are designed to help the body adapt to stress and promote mental clarity. These drinks can provide a sustained energy boost without the crash, supporting productivity throughout the day. They are often made with superfoods and spices that enhance both physical and mental performance.

Popular Brands: MUD\WTR Masala Chai (35 mg caffeine), Four Sigmatic Think Coffee (150 mg caffeine), ReNude Chagaccino (0 mg caffeine)


Golden Milk (Turmeric Latte)

Image Source: Golde

Golden milk, made from turmeric, ginger, and milk (or a milk alternative), is a caffeine-free option that can improve mood and reduce inflammation. The calming properties of this drink can help maintain focus and clarity, making it a great addition to a productive morning routine.

Popular Brands: Golde Turmeric Latte Blend (0 mg caffeine), Blume Turmeric Blend (0 mg caffeine), Four Sigmatic Golden Latte Mix (0 mg caffeine)



Chicory Root Coffee

Image Source: Teeccino

Chicory root coffee is an excellent alternative that satisfies the desire for a warm beverage without caffeine. It is rich in inulin, a prebiotic fiber that aids in digestion and promotes gut health by supporting beneficial bacteria. Chicory coffee has a nutty, earthy flavor and can help control blood sugar levels, contributing to overall energy and productivity throughout the day.

Popular Brands: Anthony’s Instant Chicory Root (0 mg caffeine), Teeccino Chicory Coffee Alternative (0 mg caffeine)


Yerba Mate

Image Source: Guayaki Yerba Mate

Yerba mate is a traditional South American herbal tea made from the leaves of the Ilex paraguariensis plant. It contains about 40-80 mg of caffeine per serving, which is less than a standard cup of coffee but enough to provide a gentle energy boost. Yerba mate is rich in antioxidants, vitamins, and minerals, and users often report feeling energized without the jitters or crashes associated with coffee. It has a unique, slightly bitter flavor and can be enjoyed in various forms, including loose-leaf tea and pre-brewed options.

Popular Brands: Guayaki Yerba Mate (40-150 mg caffeine)


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LA’s Data Center Supply Crunch

🔦 Spotlight

Happy Friday Los Angeles!

The Los Angeles data center market is experiencing a significant supply crunch, ranking 12th in growth among top markets since 2020 with only 265 megawatts of colocation inventory (data centers where businesses rent space to store their computing hardware and servers). Despite this, demand is surging, driven by AI, cloud, and hyperscaler needs, with AI accounting for 20% of new data center demand nationally. This scarcity is creating a highly competitive environment, with vacancy rates at a record low 3% and asking rents rising 13-37% year-over-year. For Los Angeles, this presents both challenges and opportunities in the big picture. The city's strategic position as a global entertainment hub and its connectivity to international markets through subsea cables make it an attractive location for data centers. However, the limited inventory and rising costs could potentially hinder growth and innovation in the tech sector. To maintain its competitive edge, Los Angeles will need to address these constraints through new developments, such as GI Partners' 16 MW addition at One Wilshire, and by focusing on high-connectivity, high-power capacity submarkets. The city's tech community should prepare for a landscape of increased competition for quality data center space, higher costs, and the need for innovative solutions to meet growing demand, particularly in AI and cloud services. While Los Angeles faces a challenging data center supply crunch, its strategic advantages and ongoing developments offer a promising path forward.


🤝 Venture Deals

LA Companies

  • Daisy, a one-year-old startup that designs and installs smart home and office technology systems, raised a $7M Series B co-led by Goldcrest and Bungalow, with previous investors Bullish and Burst Capital also stepping up. The company has raised a total of $13.3 million. - learn more

LA Venture Funds


    ✨ Featured Event ✨

    LA TECH CEO SUMMIT

    LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.

    Learn More Here

    Register Here


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    🌐Decentralizing Data & Vacations: Sony's Web3 Leap and Sensible Weather's KOA Partnership

    🔦 Spotlight

    Happy Long Weekend Los Angeles!

    Sony Group is making a significant push into the blockchain and Web3 space, leveraging its Sony Pictures and Sony Music divisions along with a new global incubator. The company has developed the Soneium blockchain through Sony Block Solutions Labs, a joint venture aimed at accelerating Web3 innovation. Sony is launching the "Soneium Minato" public testnet and a developer incubation program called "Soneium Spark" to foster ecosystem growth and adoption. The initiative includes strategic partnerships with Web3 companies such as Astar Network, Circle, and Optimism. Sony aims to create a fan community centered on creators and connect diverse values through Soneium, with the ultimate goal of integrating Web3 services into people's daily lives. While the company acknowledges the challenges faced by Web3, including limited user adoption and the need for mainstream use cases, it remains committed to decentralizing the concentrated power of the current internet landscape.

    In completely unrelated and more digestible news Sensible Weather, a leading weather protection provider that we’ve featured many times, has partnered with Kampgrounds of America (KOA) to offer Weather Guarantees at over 450 KOA Campgrounds across the United States. This collaboration allows campers to purchase weather protection for their outdoor experiences, providing peace of mind and potential reimbursements of up to 100% of their nightly rate if weather conditions exceed predefined parameters. The partnership comes at an opportune time, as camping has seen a significant increase in popularity, with active campers growing by 68% over the past decade. If you are looking to do some camping this fall make sure you look into Sensible Weather protections to ensure that unpredictable weather won't dampen (nailed it) your camping experience.


    🤝 Venture Deals

    LA Companies

    • Space and Time, a blockchain data warehouse developer, raised a $20M Series A led by Framework Ventures. - learn more
    • Miris, a provider of spatial content streaming solutions, raised a $26M Seed Round led by IAG Capital Partners. - learn more

    LA Venture Funds

    • Fika Ventures led a $4.55M Seed Round for Revenew, a San Francisco startup that aims to help digital platforms and marketplaces manage their payments and optimize financial operations. - learn more
    • Bonfire Ventures participated in a $25M Series A for Supio, an AI platform for personal injury law firms. - learn more
    • Amplify LA participated in a $2M Seed Round for Pryzm, a startup that provides tools and data to help businesses navigate government contracting more efficiently. - learn more

      ✨ Featured Event ✨

      LA TECH CEO SUMMIT

      LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.

      Learn More Here

      Register Here


      Download the dot.LA App

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