Like Attracts Like: How Seattle Avoided the Boeing Bust
As seen recently with the announcement of Amazon’s new HQs, cities are willing to pay top dollar to attract technology talent. But what makes a company like Amazon want to move to a new place? The story of Seattle sheds some light on what it takes to attract tech talent when you aren’t San Francisco.
Seattle hasn’t seen too much of a population loss, despite having the perfect storm to incite one. In fact, Seattle has been able to surpass its previous population peak. Although the population dipped from 1960 to 1980, in 1990 people started to return to the city, and this increase quickly outpaced the slowdown resulting in 724,745 residents which is far greater than the 1960 peak of 557,087.
In pattern with the population drop, unemployment increased. In December 1982, Seattle saw its unemployment rate rise to 16.5%. These drops were mainly driven by economic forces. Seattle is no stranger to boom and busts, and its storied past goes all the way back to the Klondike Gold Rush. The high unemployment rates seen in 1980 can be traced back to the “Boeing Bust” of the late 60’s and 70’s, that were exacerbated by the oil crisis in 1970. Back then Seattle was largely dependent on Boeing, and when Boeing cancelled its supersonic transport and saw the sales of the 747 airplane slow, Seattle saw massive repercussions. Circumstances were so dire that two real estate agents put up a billboard saying, “Will the last person leaving Seattle — Turn out the lights.”
What would have been a nail on the coffin of many other cities was not the end of Seattle. Instead, Seattle bounced back quickly and vigorously. Much of this was due to Microsoft. In 1986, before it went public, Microsoft chose Redmond Washington as its headquarters cementing Seattle as a place for technology. Amazon is also headquartered in Seattle, and Amazon is investing in the city’s development. They’ve built the Amazon spheres, a popular tourist site, and they tested their drop in and pick up grocery store concept there.
These large companies are not only attracting long term residents, but also commuters. With the tech conferences that Microsoft holds, and the consulting clients Amazon trains in AWS at their headquarters, the number of visitors these companies draw to Seattle is not insignificant. The booming economy and allure of Microsoft and Amazon has encouraged more people to apply to the University of Washington, whose campus is in Seattle.
As of 2017, Seattle rose to the second best tech city in the US, only behind San Francisco. It is ranked based off of a few factors including, number of tech employees, population trends, wages, education levels, housing and business costs. Even more so, it is one of the most educated markets in the US. Still, housing rates are on the rise with the average rent sitting at $1,694 per month. Although this is extremely expensive, it is still $1,100 per month less than the average rent in San Francisco.
With the input of technology and new business, Seattle saw a boom. It was lucky that Microsoft settled in the area, and convinced many more technology companies to follow it. Seattle is riding the tech boom, and some believe that it may not stop.
This is an excerpt from my book, Millenials and the Resurgence of the American City. I hope you enjoyed this post — if you want to connect, you can reach me here via email gkim9779@gmail.com or connect with me on social: LinkedIn, Facebook, Twitter, Instagram. Also, you can find my book on Amazon — here is the link to buy it: https://www.amazon.com/dp/B07KPCBJDR
