Reclusive Billionaire Craigslist Founder Reveals Why He Quit San Francisco for New York

Craigslist founder Craig Newmark has revealed why he chose to ditch San Francisco in order to become a full-time philanthropist on the East Coast.  

In a recent candid interview with SFGATE, the internet pioneer, 73, opened up about his decision to relocate to New York five years ago, officially closing the book on his decades-long residence in the Golden State, where he launched his very lucrative online business.

The tech mogul, who is originally from New Jersey, became an “accidental billionaire” during the original dot-com rush of the late 1990s thanks to the launch of his classified ads website, on which users can promote items and services for sale, send out calls for new roommates, and even find dates.

Since then, a new generation of tech workers and venture capitalists have flooded into San Francisco, driving up real estate prices and fueling the latest AI boom, creating a landscape that Newmark admits he no longer recognizes.

"It has changed a lot," Newmark admitted. "The industry is very young now. I don’t relate well to that. Also, my favorite coffee place on Cole Street is gone."

Newmark was referring to Reverie, a beloved Cole Valley neighborhood staple that closed down. He noted he is currently hoping its replacement, Double Black, becomes his new go-to hangout when he visits.

While San Francisco's residential market is seeing renewed heat thanks to AI founders and engineers setting up shop, Newmark realized his personal and professional priorities would better flourish elsewhere.

"Very little in my interest areas happens in San Francisco, but a lot happens either in New York or Washington, or the people from the nonprofits or funders either live and work here or visit New York a lot," he explained.

Newmark’s departure from San Francisco is part of a larger, long-term pattern of stepping back from tech leadership, having worked within the industry for decades before the launch of his site.

The businessman's career began at IBM, where he started working immediately after graduating from college, before moving on to Charles Schwab, the company that first brought him to San Francisco. However, while he is widely considered one of the pioneers of the early internet age, the former computer programmer said he was never interested in leading a company.

Shortly after founding the website version of Craigslist in 1996, one year after it was launched as an email network, Newmark stepped down from his duties as CEO, believing he lacked the necessary management skills.

"When I was at IBM, I learned that as a leader by the top management, I completely suck," Newmark said. "Leadership requires the ability to inspire people. I don’t have that. That’s why I stepped down as CEO at Craigslist."

He further revealed that he simply lacked the necessary people skills to run the business.

"I would correct people with other people around. Rudely," Newmark said.

After realizing he wasn't built for leadership roles, Newmark stepped aside and transitioned into full-time giving.

"Let’s say I’m shrinking my ignorance less and less all the time, sometimes embarrassing myself," he joked about his transition into major giving. "Well, I have given up on pride and dignity. For sure, I don’t care."

Newmark has spent the last several years systematically shedding his wealth. Years ago, he transferred all of his Craigslist shares into a 501(c)(4) organization.

"I’ve admitted to myself over the last year or two that I do have the tastes and attitudes of a peasant. I am a peasant with money, but I’m still a peasant," Newmark said.

Through the Giving Pledge, Newmark has already secured $660 million to charitable organizations.

"My fantasy is by the time I pass and I’m replaced by AI Craig, I will have given away $1 billion, in large part due to the miracle of compound interest."

His primary focus areas include military families and veterans—giving $200 million to organizations like the Bob Woodruff Foundation and Blue Star Families. He also supplied funding for journalism and civic education, such as working on tuition-free initiatives at the CUNY Graduate School of Journalism and support for Wikipedia.

"I have a researcher acquaintance at Penn who wrote a book saying that Craigslist and Wikipedia are the last ungentrified sites on the internet. Everything else has gotten fancy, expensive, and as author Cory Doctorow would say, ens—ttified."

Newmark has settled into a rather quiet life in Manhattan compared to other billionaires, focusing on giving to non-profits and subscribing to streaming TV shows like "Slow Horses."

"I have the luxuries that I want," Newmark shared. "As an old guy, that includes a walk-in shower with a grab bar. I can subscribe to all the streaming services I want because I love TV. When I want to buy a book, I don’t hesitate. That’s about it."

For Newmark, he doesn’t view himself as a billionaire tech mogul, despite having an estimated net worth of around $1.3 billion.

"I am not, nor have I ever been, a billionaire," he said.

His statement marks a stark departure from the narrative surrounding many of California’s other ultra-wealthy residents.

In recent years, many high-profile billionaires, such as Elon Musk, Larry Ellison, and Peter Thiel, have fled California altogether because of the billionaire tax for zero-income-tax states like Texas and Florida.

However, Newmark shared that he still loves San Francisco, owns a home there, and regularly funds Bay Area organizations like Common Sense Media, showing that for him, leaving California was never about taxes, simply about following his purpose.