Oh well, you can always come back for the wings…
Bye bye exiles… so long and farewell…
Who cares about the quitters.
Bay Area newcomers had a median annual household income of about $70,000, while those leaving had a household income of $57,400, according to the study. About 60 percent of the newcomers had at least a four-year college degree, while about 50 percent of the outgoing residents had that level of education.
A median household income of $70k is still poor in the Bay Area. Those people won’t last long.
You forget the Bay area magic. Incoming 70k from a cheaper state means it magically changes to 1.5-2x here since they probably took a higher paying tech job, no?
I read that as their income in CA is $70k. I don’t know anyone that gets 1.5-2.0x higher pay just to move t the Bay Area. Many of us that leave get the same pay in the new location.
I never made more than 80k in the bay area and I retired comfortably with no problems last year.
You didn’t have to buy a home at current prices though.
But when he bought his BA home back then, his financial situation was probably similar to a person trying to buy now.
I know many. Talking total comp, not base. Heavy equity incentives.
He bought his primary for $30k when SV is still an orchard
Assuming median house here is 30x (1M) his purchase price it means he has 2.4M (80k*30) salary buying power today.
According to my simulation, the median price of SV homes will be $10 million in 20 years.
Does that mean median SWE salaries will be 3MM?
Don’t think so. I think by then no SWE will be able to afford to buy a home here
Could be possible, starting to get that feel like in HK, Shanghai, etc where a 1M flat rents for only $1000. Prohibitively expensive to buy versus rent unlike today where buying actually works out in the long run.
It’s possible. 10MM buys you a single family house so that developer can build 10 story condos. SWEs would buy a 1000 SF condo instead. Condo price may stay the same as today excluding inflation.
What did you take as annual appreciation?
I think 8-10% is about right.