Rent a moving truck from Las Vegas to San Jose and you'll pay about $100. In the opposite direction, the same truck will cost you 16 times that, or nearly $2,000.
What accounts for the difference? The simple laws of supply and demand, says economist Mark J. Perry. With so many people leaving the Bay Area, there are not enough rental trucks to go around. Perry, a University of Michigan professor, published his findings in a new study with public policy think tank American Enterprise Institute (AEI).
CBS News reported recently that operators of a San Jose U-Haul business have trouble getting their rental vans back "because so many are on a one-way ticket out of town." The revelation inspired Perry to compare the costs of U-Haul rentals for trucks leaving San Jose versus those heading into the city.
Silicon Valley has arguably one of the highest costs of living in the nation. The cost of leaving isn't cheap, either. Perry tracked the costs of renting a 26-foot U-Haul truck to San Jose from six cities deemed destinations for those moving out of the Bay Area — Las Vegas, Phoenix, Portland, Ore., Nashville and Atlanta.
In every model, the price of renting a truck outbound from San Jose was at least double the amount of renting the same vehicle in the opposite direction. See the prices in the above gallery.I guess I would like to know who is leaving San Francisco, and who is staying. The income level of the people outmigrating would be interesting to know.