Attention All Real Estate Bubble Pros and Skeptics

Citibank / Eng id 10 t
May 31, 2018 65 Comments

We can all agree housing isn’t affordable for the masses in the Bay. We can agree it would make financial sense from a pure cost accounting perspective for companies to move to cheaper locations. Can it make sense revenue perspective? Are there not talented folks living outside the major tech hubs that can do a majority of the grunt work only to leave the visionary minority to dream up the next big thing in the valley?

That’s been happening in finance for years. Why not tech??

https://www.cnbc.com/2017/12/27/silicon-valley-will-soon-see-mass-migration-redfin-ceo-says.html

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TOP 65 Comments
  • Oracle alive
    Exactly what I was posting in another thread. If Silicon Valley was immune to correction then 2008 would have never happened.

    Wait and watch. When the correction happens the investors flee. Its funny how people see two recessions and still think that “this time it’s different 😂”
    May 31, 2018 12
    • Facebook public
      Anything less than 10 years is short term. You are in for an unpleasant surprise if you are in real etsate or equity markets and think otherwise. At least you seem happy though!
      May 31, 2018
    • Oracle alive
      Real estate cycles are 10 years. You think 10 years is short term. 😂😂🤣😄.
      May 31, 2018
    • Facebook public
      I absolutely do yes and have always invested as such. It's made me a lot of money and apparently is super funny to you so seems like a win win for us! Good stuff!
      May 31, 2018
    • Oracle alive
      SF - your choice - drop 25% - dropped from 800k to 600k over 5 years.
      May 31, 2018
    • Facebook public
      Ok, you are correct! Looks pretty flat to me but again at year increments it is :)
      May 31, 2018
  • Oracle / Mgmt rupJJ
    This has been happening in finance for years?!

    Last time I checked Manhattan/NYC was still the financial capital of the world, by far.
    May 31, 2018 5
    • Citibank / Eng id 10 t
      OP
      Check Salt Lake City, Jacksonville Florida, Omaha ne to name a few. The brains are in NYC. The grunt work has been moving out for years.
      May 31, 2018
    • Tableau krxi15
      And how does one convince himself that he is a grunt and not a brain. Maybe finance guys can but tech ppl are way too egoistic.
      May 31, 2018
    • Citibank / Eng id 10 t
      OP
      And one that convinces himself they’re not is delusional
      May 31, 2018
    • Citibank / Eng id 10 t
      OP
      And finance guys weren’t egotistical?? Seriously?? Cocaine and strippers was synonymous with finance. Finance guy are no longer egotistical...the financial crisis was a humbling experience. We were convinced the ride would never end. Then we were forced to grow up.
      May 31, 2018
    • Oracle / Mgmt rupJJ
      Yes, and tech has support centers in India and in Eastern Europe which do a lot of the grunt (and for much cheaper than Omaha NE).
      May 31, 2018
  • Google yue
    I have been hearing this for quite a while now.
    May 31, 2018 2
    • Citibank / Eng id 10 t
      OP
      Super long time. I agree. There’s got to be an inflection point. At the end of the day all shareholders care about is their return on investment. 99% of them don’t live here and couldn’t care less if sf Bay fell into the sea as long as it doesn’t impact their returns.
      May 31, 2018
    • Google yue
      Well SF Bay area has gone through corrections regularly though. But there wasn't a drop that ppl were expecting, just flat lining.
      May 31, 2018
  • Amazon фoo
    Why is Citibank on Blind?
    May 31, 2018 10
    • Citibank / Eng id 10 t
      OP
      Delete “YouTube’s tech” from first sentence....more fitting. And yes, turning a profit is incredibly boring. FAANG wannabes. Pathetic.
      Jun 1, 2018
    • New VGrb82
      Since when is everyone in banking or finance automatically “non-tech”? FYI plenty of traditional business sectors have predictive modelers, data scientists, and developers working on their products.
      Jun 3, 2018
    • Vevo Tleilaxu
      it’s not about your engineering org in the company. It’s about the company itself and its culture. A tech company is engineering and innovation first. At FAANG, it’s engineering first culture. At banks, it’s banker/trader first, and developers are just the ‘IT guys’. Same goes for other traditional businesses/industries. That’s also the main difference between Fintech and Financial companies. Robinhood is a fintech company, Vanguard is a financial company.
      Jun 3, 2018
    • New VGrb82
      I definitely get what you’re saying about corporate culture being entirely different, but two groups under different management can have subcultures that are day and night and tech companies are not the only place people can get that type of experience. My last position was at a business services org and my group (advanced global analytics) and the architects had everything you get at a startup (including beer in the fridge) except the hours and options. We had access to execs and I never saw anyone being treated like a plebe.

      Regardless of company culture, I don’t think having a technical role outside of “tech” invalidates someone’s perspective. Not everyone in tech is an engineer or developer—you’re forgetting about the applied math/stats people who code and could just as easily work at Citibank as they could Amazon or Robinhood (or even Vanguard).
      Jun 3, 2018
    • Vevo Tleilaxu
      Sure, that’s great for some team if they get the chance to enjoy aspects of tech culture under a good middle management. But at the end of the day, it boils down to what a company’s SLT want, and how they see the world. It’s a tech company under *berg, and a financial company under *stein. It’s better for tech people to be working under *bergs. Also, being an engineer is about the mindset, not college degree. I also know many capable engineers and builders that have math/stats/physics backgrounds.
      Jun 3, 2018
  • Facebook public
    Makes for a clikable headline and would be fantastic if true but how many people will leave a coast and proximity to the ocean for cheap housing? Sv has been more expensive than average cities forever, nothing has changed now except that the wealthy are even wealthier.
    May 31, 2018 14
    • Oracle alive
      Lol. If anyone is changing arguments then it’s you and you are the trump here.

      An example above about the housing prices remaining flat in 2008 proves how wrong you are.

      Even after showing you the facts and numbers from trulia and picking your city of choice SF , you still won’t accept that you were wrong. Facts don’t matter to you just like they don’t matter to Trump.
      May 31, 2018
    • Facebook public
      You proved my point alive lol. No need to dig yourself deeper it's cool to have your own interpretation of the facts and what they mean obviously. 25% is a lot for you and not a lot for me as an example. All relative mr trump.
      Jun 1, 2018
    • Oracle alive
      25% fall in house prices as per the data and you said that prices remained flat. That’s living in denial and proves that you never have facts to back up your claims.

      Again, the above data proves you are the trump here who would first lie (say that house prices remained flat in 2008) and when shown the correct data you would continue to live in denial. So good bye Mr Trump !!
      Jun 1, 2018
    • Facebook public
      Huh? Not denying your 25% drop. Saying like all markets there is short term volatility. Over a long range a short term 25% drop is flat to me. Understand it's a big deal for you. Deflecting is why you sound like trump, no puppet no puppet lol.
      Jun 2, 2018
  • Vevo Tleilaxu
    Also what you’re asking is already happening. Most companies in the bay area have other offices where people are doing the ‘grunt’ work. It’s just that most of those people want to transfer to the bay the first chance they get.
    Jun 1, 2018 7
    • Citibank / Eng id 10 t
      OP
      Uh, yeah livin’ large in the Bay Area. A large studio with that salary. HQ in NYC? Enjoy Staten Island. You’ll fit in well.
      Jun 1, 2018
    • Citibank / Eng id 10 t
      OP
      Looks like a winner to me. 😂😂😂😂
      Jun 1, 2018
    • Vevo Tleilaxu
      You’re actually right about the company. Not arguing with you there
      Jun 1, 2018
    • Vevo Tleilaxu
      But still, beats working at the teller or the .NET IT “back office” every single day 😂
      Jun 1, 2018
    • Citibank / Eng id 10 t
      OP
      Love when you guys can’t back up your shit. You seem to know the ghetto well. Keep Day dreaming. Really, you’re better than the rest of them. They’ll see. You’ll show them one day. 🤣🤣🤣
      Jun 1, 2018
  • Cisco unscribe
    Same story when Sunnyvale 3b2ba Eichler homes were topping an astounding 300k... oh no, it had to stop...
    May 31, 2018 0
  • This comment was deleted by original commenter.

    • Oracle alive
      The same customer support HQ2 for which several Bay Area cities filed proposals, and Bezos told them “kiss my a**” ?
      Jun 1, 2018
    • Vevo Tleilaxu
      yeah east bay is not SV. You can be happy Foster City made it. Took quite some landfill though
      Jun 1, 2018
  • New VGrb82
    A mass exodus might be an exaggeration but it certainly isn’t going to be easy to draw as much talent as before when you can effectively make more (adjusting for COL) in cities like Chicago, Nashville, Denver, and Austin doing similar work.
    May 31, 2018 2
    • CrowdStrike WWzj13
      Is the TC there? I got a 50% raise in base moving from Austin to CA. Maintained same COL, just gave up a spare bedroom.
      May 31, 2018
    • New VGrb82
      Meaning you got less for the same amount of money. I’m not saying it’s not worth the trade off—people will weigh lifestyle, culture, affordability of housing, schools, etc. differently and nobody has the same set of circumstances—I’m simply pointing out that if you’re using CPIs, entry-level to mid-level salaries in the Bay Area can’t keep up. You’d have to make $130-$140K in San Francisco to be in a similar financial situation as you’d be in if you made $85-$90K in Chicago, $70-$75K in Nashville, or $65-$70K in Detroit.
      Jun 2, 2018
  • Amazon bluecoin
    God I hate silicon valley so much
    May 31, 2018 0
  • Amazon Rap+Piñata
    I wonder if HQ2 and apples new addition could be a catalyst for the 'mass migration' to really begin.
    May 31, 2018 0
  • VMware Vmfell
    LOL!!
    May 31, 2018 0