Housing prices are soaring in the area surrounding Tesla’s factory in Austin.

According to MSN News, Tesla CEO Elon Musk recently announced that the company is planning to relocate its headquarters from California to Austin, TX. The company already has a new factory in Austin that is still under construction.

Elon Musk decided to relocate due to the high cost of housing in California, but ironically the move could be contributing to the problem of the skyrocketing costs of housing in Austin. The New York Post reports that other tech giants including Apple, Google and Oracle have also been building new centers in the city.

“NY Times reports that some Austin residents worry Tesla relocation to Texas could price them out of housing. Does that also means some Austin residents that might be thinking of moving will make profitable sales? The other side of coin,” political observer Tom Asiseeitnow wrote in an Oct. 11 Twitter post.

Tesla already had plans to relocate 10,000 factory workers to Austin, but it is unknown how much of the corporate staff will also be making the move.

“All these Californians coming here is also changing the culture, and I’m worried it will become too much,” local resident Reed Chorry, 26, told the New York Post.

According to the New York Post, the costs of housing in Austin have risen 40% over the last two years and as of Sept. 2021, the median price for a house in Austin was approximately $549,000.