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Affordability


               
2011 Mar 7, 5:33am   5,502 views  25 comments

by pkowen   follow (0)  

This article states that "the cost of a home is about 19 months of total pay for an average family, the lowest level in 35 years"

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/03/04/investopedia51111.DTL#ixzz1Fx5C025C

In my neighborhood, 19 months total pay is about $158,000. The typical listing is closer to $1 million.

So, tell me again why the bay area is different. So different to justify prices at a factor of 6 or 8x the national fundamentals....

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23   Eliza   @   2011 Mar 8, 4:09pm  

It seems that a lot of people end up coming to the Bay Area and staying for ten years or so. There could be cultural reasons for that--this area is welcoming and interesting for people in their mid-twenties to mid-thirties--but affordability has to factor in, too. If young people who make more money than their parents ever have can't afford a house as good as the one in which they were raised, they might look for other options. Educational systems also matter as people become parents. Kids in California get a much cheaper public education than kids in other parts of the country, and it shows. Most of the tech workers I know are not locals--they received a strong education somewhere else and came here to do interesting work. Increasingly there are opportunities to do interesting tech work in other places, albeit with worse weather. But if you didn't grow up in the California sunshine, maybe you don't have to have it. Particularly if the trade-off includes financial security and good schools.

That said, I've heard about this pattern for years. Is is a sustainable pattern? Are new eager engineers still pouring into California to keep the cycle going? If so, then it does not matter if a lot of 35-year-olds are leaving.

24   Philistine   @   2011 Mar 8, 10:55pm  

Serpentor says

Lexington MA?

There's nothing sexy about Lexington, that's why. They don't have their own "Real" Housewives series, no trashy celebs getting busted on TMZ, no glamor professions for young entitled types or trophy properties on Park Ave for the Foreign Money Millionaires.

25   thomas.wong1986   @   2011 Mar 9, 3:59am  

Eliza says

That said, I’ve heard about this pattern for years. Is is a sustainable pattern? Are new eager engineers still pouring into California to keep the cycle going? If so, then it does not matter if a lot of 35-year-olds are leaving.

The reality is hiring for California companies takes place in many states. Intel will court several grads in say Ohio or Florida and hire to work in the NorthWest or other locations. So its not do you want to work in California.. its do you want to work for Intel, HP, Oracle ? But that can be anywhere in any state and often is. And many people are all to eager to work for a BlueChip regardless where it is. If your cool and hip, need not apply. They are not interested!

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