Is San Francisco the next Detroit?

The city of Detroit arguably had the most productive economy during the mid-1900 because of the automotive industry. Today, San Francisco is one of the most populated cities in the U.S. due to the technology industry. What factors caused the decline of Detroit and the rise of San Francisco? One possibility is that wealth fluctuates over a time frame from different geographical locations. This will cause median household income (the average American household) to decline in Detroit compared to San Francisco.

When cities are booming with a high per capita, the population explodes with individuals specializing in a growing field. During the rise of the automotive industry, Detroit, Michigan was the highest gross per capita city in the country with a population of 1.8 million making Detroit the fourth largest city in the country. In the decades that follow, Detroit’s population imploded with a steadfast decline after 1970.

Individuals who had the skill set contributing to Detroit's economy (specializing in the market) emigrated to other cities. Hence, wealth fluctuated to a different region in the division of labor. Today, San Francisco is the highest household median income city in the country, being the most populated city in the country (http://www.statedatalab.org/). The question arises, what factors contribute to wealth fluctuating to different regions over time i.e. skilled workers migrating to other cities, local government intervention, and business growth?

San Francisco’s market has been in high demand due to the technological industry. Over the years, San Francisco has shifted to a technological economy with companies like Google, Twitter, Airbnb and LinkedIn. Individuals have a high demand for the goods being produced in the local economy, which has made investment in the real estate market more lucrative with home values increasing by double digits. With more individuals in the local economy, specialty has increased due to the market. Will San Francisco continue to be the epitome of a localized economy, or will it follow the pattern of Detroit?