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Rents Have Doubled in Silicon Valley In 10 Years
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2016 Jul 9, 11:34am 1,814 views 3 comments
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Patrick
2016 Jul 9, 1:29pm
what was the rate of salary density increase over that time?
ie, the aggregate personal dollars per square mile (people times incomes)
bet it rose pretty much in tandem with rents
Bellingham Bill
2016 Jul 9, 4:54pm
Apple was spending $700M/yr in R&D in 2006, now it's $10B.
Last time I was in Sunnyvale I was shocked by how many office parks Apple had taken over.
I had some coworkers move jobs to Linked In in 2006, LI put in a new HQ on Mathilda not too long ago.
Ah, I see Apple took that, too
Shows that if rents were a constant % of area wages the rent would be $1600 not $2600.
The red line is the main reason rents are up so much of course. Employment up over 200,000 jobs since 2010.
Bellingham Bill
2016 Jul 9, 4:58pm
Scaling incomes by increase in workers in SCV shows "money density" per Patrick above would indicate a $1800/mo rent.
Thing is, people bringing in ~$140,000 can easily pay $30,000+ in rent each month.
It sucks, but what are ya going to do, live in a van??
I rented this for $1320/mo back in 2006. 7% annual rate of rise.
Under LA's 3-5% rent control ordinance, if I was paying $1320 in 2006 I'd be paying ~$1800 now.
Just for fun, I ran the simulation if I had stayed in my rent-controlled $700/mo place in West LA from 1991-now . . . $1550/mo rent in 2016, about half the market rate now.