San Francisco Residents Flee Soaring Costs, Staying Nearby

New IRS data shows net domestic migration decline of 1% as more leave than arrive in the Bay Area.

Apr. 3, 2026 at 4:40am by Ben Kaplan

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A minimalist, photorealistic studio still life featuring a stack of tax forms, a laptop, and a pen, symbolizing the financial pressures driving residents out of San Francisco.As the cost of living in San Francisco continues to rise, more residents are choosing to leave the city, though many remain within the broader Bay Area region.San Francisco Today

According to tax return data obtained by the San Francisco Chronicle, more people left San Francisco than moved in between 2022 and 2023, part of a broader pattern of residents departing the Bay Area's nine counties. While the net domestic migration decline was around 1% for the city, most residents are not going far, staying within the region.

Why it matters

San Francisco has long been considered the "Capital of Venture Capital" and a hub for tech and innovation, but the city's notoriously high cost of living has driven many residents to seek more affordable options, even if they remain in the broader Bay Area.

The details

The IRS data shows that roughly 6,500 more residents departed San Francisco for other parts of the U.S. than arrived during the one-year span from 2022 to 2023. This net domestic migration decline of about 1% is part of a broader pattern hitting all nine Bay Area counties, as residents continue to be priced out of the region's sky-high housing and living costs.

  • Between 2022 and 2023, San Francisco saw a net domestic migration decline of about 1%.

The players

San Francisco

The city of San Francisco, California, which has long been a hub for tech and innovation but has also grappled with soaring costs of living that have driven many residents to seek more affordable options, even if they remain in the broader Bay Area.

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The takeaway

The exodus of residents from San Francisco, while modest, highlights the ongoing challenge the city faces in retaining its population amidst the high costs of living. As more people leave, the city will need to address affordability issues to maintain its status as a leading tech and innovation center.