At what point do we (tech workers) move out of the bay?
https://www.google.com/amp/s/www.vox.com/platform/amp/2019/3/19/18256378/tech-worker-afford-buy-homes-san-francisco-facebook-google-uber-lyft-housing-crisis-programmers When you calculate your real wage with respect to cost of living, are you doing that much better than say a geologist in Texas? Sure we can save a little bit, but buying a home just isn't happening for most of us in the Bay area. I come from Phoenix where housing costs are relatively reasonable (median home price in Phoenix is about $250k). You can do fairly good for yourself making just $75k in Phoenix. Or in other words, in terms of home buying ability, a $75k salary in Phoenix is equivalent to a $250k salary in the bay area. (These are ballpark guestimates, I didn't actually do the calculations). So, the question is, are you really getting paid that much?
Vox
Microsoft meant to say people have been leaving (and arriving) for years, I think. And yes, I think I'm doing better than a geologist in TX, unless they're doing way better than I thought.
The average salary for a Geologist is $82,503 per year in Texas according to indeed.com https://www.indeed.com/salaries/Geologist-Salaries,-Texas median home value in Houston is $187,800. According to Zillow Making 45% of your housing cost, gross, in salary is pretty good. The median home value in San Jose is $1,054,500 Meaning you would have to be making roughly $464,000 a year gross salary in San Jose to be making what that geologist is making.
Got it. Yes, I am pretty well past 464.
You can easily make 300k in Texas in tech, it’s only worth being in the bay if you can get 500k or more.
You probably still have more money in the bay area. Your example is ridiculous. Say your TC is 250k, tax is 100k and spending is 50k. You’d still save 100k, more than your entire earnings in Pheonix. More likely, your TC here is 200k and elsewhere its 150k. It would still probably be worth it. Keep in mind you can spend 75% of income in one place and 50% of income in another and still end up saving more in the 75% place. I still want to move out though because the monoculture here is exhausting
Yes having more nominal money is good. But when it comes to localized inflation you eventually have to move out for that difference in nominal money to matter. Making the bay area a revolving door.
No I’m saying you’d save more even if you maintained the same quality of life (ie purchased the same things, QoL here suxx). Everything except housing costs the same. Like restaraunts are 20% more or sales tax is 10% more.
Go back to Phoenix? 🤷♂️ supply and demand?
Man, these articles annoy me. “Adjusted salary” is just a bunch of BS made up by second-rate tech cities who are trying to convince you that their city is “the next big tech hub” or “silicon valley of the east coast”. Back on the east coast, I was making 140k. Got a job in the bay, same role, but 315k TC (~200k base). I had a studio apartment which ran for about 2000/mo. In the bay, I split a place with roommates, but pay 1400/mo for rent. Lower standard of living, but if I really wanted to, I could have a luxury studio out here for 3000/mo and still save 2x what I was able to save when I was working in some med-COL city on the east coast. And we haven’t even started talking about stock options yet. I’m not trying to brag here at all, just giving some real numbers to try and prove a point.
Yes, but as I said before, although the nominal value of your TC is more, the buying power of it hasn't changed much because of the regional inflation of the bay area. In order to capitalize on the increased nominal TC you have to move out of the bay into a lower cost of living area. This in turn makes the bay area a revolving door and not a place for one to realistically permanently live. Or if you do decide to permanently live in the bay area, well you don't gain any more buying power, and you have to deal with lower standards of living.
A bmw costs the same in the bay as it does in Texas
^ this
I left the Bay Area a few years ago (for Seattle) and I’ve never been happier. Net worth is increasing a lot faster now. Pay increase (TC $380k now, was $300k in SF), waaay cheaper and nicer housing, and no state income tax.
But the gray...
Loads of refugees coming to the Midwest and appear happy as hell
I'm outta here after 5 years. I keep burning more RSUs than I can really save because EVERYTHING is expensive. I'm going remote, and heading to a place with a shit ton less people for sure.
They have been for 10+ years
Who has been what? Use your words. 😔
Tech boom happened with FANGM companies during 2013-2019. People who held a lot of stocks on these coupled with bitcoin maestros got a lot of cash. Cash enough to roll into upgrades w.r.t housing. That's what you see now