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However, the excitement began to unravel in late 2022 when the broader tech industry started experiencing declines. Interest rates rose, which inhibited funding; layoffs soared. Over 300,000 tech employees lost their jobs across the country from 2022 to early 2024, with Austin feeling the repercussions particularly acutely. The Austin Chamber of Commerce reported a 25% decline in tech job postings within just two years, as companies hesitated to hire amid economic uncertainty.
As residential prices soared, the city's infrastructure lagged behind. Roads became congested, and public transport remained underdeveloped, making daily life increasingly problematic for new residents. The once-beloved city, heralded as a booming tech paradise, started to look less appealing.