Silicon Valley is about to get absolutely wrecked. 

Picture this: I grew up in Palo Alto. My childhood home? A totally average 1,900-square-foot box. My Dad bought it for $150,000. Last year? That same unremarkable house went for over $3 million. Not because it had a gold-plated toilet or a view of actual unicorns—it was pure location premium. Being close enough to the Googleplex to smell the free snacks was worth your soul, your stock options, and probably your first-born’s college fund.

But today? I’m officially shorting Silicon Valley housing like it’s 2008 all over again, except this time the bubble isn’t subprime mortgages—it’s AI plus California’s Blue Team turning the state into a billionaire repellent.

Let’s break it down, with extra sarcasm which I reserve for the Blue idiots, cause I am classy.

Reason #1: AI is the ultimate remote-work cheat code (aka The Dorsey Doctrine on steroids)

We used to think you had to be in Menlo Park to build the future. Wrong. Dead wrong. AI is shredding the need for those overpriced “coding hives” faster than you can say “layoffs incoming.”

Exhibit A: Jack Dorsey’s Block just dropped a bomb—laying off nearly half the staff, over 4,000 people. Dorsey straight-up told shareholders: AI tools let smaller teams crush it harder than bloated ones ever could. The business is accelerating, the headcount, rapidly approaching the cliff. 


Exhibit B: My personal friend, a former Google employee, replaced his entire server monitoring team with one AI agent? That’s not a fluke—it’s the new normal. Now the brilliant, socially allergic genius in Karachi or Brasília can “hire” a full digital staff that doesn’t demand a $3,000/month shoebox in San Jose. No rent, no commute, no awkward office ping-pong. Just code, coffee, and crushing it from anywhere with Wi-Fi.

The Valley’s sacred “network effect”? It’s getting dismantled one AI prompt at a time. Why pay Bay Area rent when your competitor is running a unicorn from a beach in Bali? Mid-level coders aren’t dropping seven figures on a “fixer-upper” when their job security is now measured in “how many tasks can Grok do better than me this week?”


Reason #2: California’s Blue Team is speedrunning self-sabotage

While AI disperses talent, Sacramento is busy punishing the golden geese that fund their whole circus.

The star of the show: that glorious 2026 Billionaire Tax Act ballot initiative. A shiny one-time 5% wealth tax on anyone worth over $1 billion as of January 1, 2026. Retroactive vibes, baby—because nothing says “welcome innovators” like hitting them with a surprise bill for existing. It’s still gathering signatures, but the threat alone is enough to send private jets screaming eastward. It gets more punitive the greater the percentage of voting rights you own. Best give that to THE PEOPLE, cause they created Facebook. 


And that happens? The Golden geese, being shown the knives and the Blue Bozos yelling “we’re coming,” take Flight.

Peter Thiel’s planting flags in Miami’s Wynwood. David Sacks is waving the Texas flag like it’s a victory parade. Zuckerberg? Reportedly dropping $150–200 million on a “Billionaire Bunker” mansion in Miami’s Indian Creek. Larry Page and Sergey Brin shifting LLCs out of state. Even Spielberg’s probably directing his own exit scene from a yacht.

Meanwhile, the Homeless Industrial Complex keeps chugging: California dumped $24 billion into homelessness programs over five years… and the homeless was cured!
Nah, just kidding, we saw the numbers Go up. Audits couldn’t even track if the money did anything useful. Audit … hahaha … good luck. 
And having lived in LA most of my adult life, they’re floating $600k–$700k one-room “units” in LA—like a jobs program disguised as housing, funded by a tax base that’s already at the airport.
Funny thing is they shut down units made for 20k, because that money wasn’t reaching their NGO complex keeping them in power. SHUT THAT SHIT DOWN!

Add crime turning SF into open-air smash-and-grab theater, CEQA lawsuits delaying every new build until the heat death of the universe, and water shortages forcing farmers to swap almonds for solar panels. It’s peak California: great weather, terrible incentives.

The brutal verdict

The next Mark Zuckerberg isn’t starting his company in a place that treats founders like walking ATMs with expiration dates. That taxes you the moment they decide your innovative company is a Unicorn without you having made a dime. 
 They’re heading where taxes make sense, streets don’t require riot gear, and you can actually build without a 10-year environmental impact report on whether your server farm hurt a squirrel’s feelings.

When the billionaires bounce, the jobs follow. When jobs vanish, that $3 million Palo Alto “charming fixer” becomes a very expensive lesson in hubris. Mid-level engineers aren’t betting the farm on a market where AI could obsolete their role tomorrow.

Silicon Valley built the future. Now it’s getting pulverized by the people who think “eat the rich” is a sustainable business plan—until the rich pack up and the tax revenue evaporates.

The moving trucks are rolling, the irony is thicker than fog in the Bay, and the correction? It’s coming in hot.

If you’re still holding Silicon Valley real estate like it’s Bitcoin in 2010… good luck. Me? I’m grabbing popcorn and watching the show.

Drop a comment: Are you shorting the Valley too, or still all-in on that $4 million starter home? Hit subscribe for more unfiltered takes, and I’ll see you in the next one—probably from somewhere with lower property taxes. Peace.