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Tech Workers Take to the Mountains, Bringing Silicon Valley with Them

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Re: Tech Workers Take to the Mountains, Bringing Silicon Valley with Them

#11

Post by polskibus »

stanrivers wrote: post #3

Are companies going to start adjusting salaries for people who move (this makes zero sense to me, the value you add most likely doesn’t change because of where you live)? That’s where this gets weird... people move to these better-to-live places and then all the employers decides to pay them less because of location. Then you just push up housing prices with salaries that slowly reset over time to be cost of living a…

It happens all the time, people in EU with similar skillset are paid much less than people in the US, even after adjusting for the differences what your taxes give you (ie. healthcare).

Re: Tech Workers Take to the Mountains, Bringing Silicon Valley with Them

#12

Post by bob33212 »

shadykiller wrote: post #7

The prices of bay area homes aren't dropping still. Looks like this migration is still temporary.

Home prices are very sticky. For mental and financial reasons people are very reluctant to price their homes below the rest of the market. During the 08 crash some houses were on the market for years.

Re: Tech Workers Take to the Mountains, Bringing Silicon Valley with Them

#13

Post by gmadsen »

stanrivers wrote: post #3

Are companies going to start adjusting salaries for people who move (this makes zero sense to me, the value you add most likely doesn’t change because of where you live)? That’s where this gets weird... people move to these better-to-live places and then all the employers decides to pay them less because of location. Then you just push up housing prices with salaries that slowly reset over time to be cost of living a…

I don't think it is 1-1 perfectly like that. In silicon Valley, a person with x skills is worth y dollars. If going remote, there will still be people with hard to find skills, probably because all the people with those skills were already in silicon valley. I don't see these jobs getting salary decreases.

however, standard crud jobs that most programmers can do, yeah that will go down as rural employees are willing to work for less out of Utah or something.

Re: Tech Workers Take to the Mountains, Bringing Silicon Valley with Them

#14

Post by andreilys »

nendroid wrote: post #2

I think the migration out of the bay will make it a more reasonable place to live. We do have some of the best weather in the world. I'm going to gamble on staying. Hopefully this isn't like detroit.

San Diego and LA have SFBA easily beat in terms of weather.

Re: Tech Workers Take to the Mountains, Bringing Silicon Valley with Them

#15

Post by Droobfest »

lotsofpulp wrote: post #8
stanrivers wrote: post #3

Are companies going to start adjusting salaries for people who move (this makes zero sense to me, the value you add most likely doesn’t change because of where you live)? That’s where this gets weird... people move to these better-to-live places and then all the employers decides to pay them less because of location. Then you just push up housing prices with salaries that slowly reset over time to be cost of living a…

>(this makes zero sense to me, the value you add most likely doesn’t change because of where you live)? Price is the intersection of supply and demand. A buyer will ask a seller to accept a lower price if they think the seller is willing to accept a lower price. A seller might accept a lower price if they don't think they can get a higher price. You are paid $X because the buyer couldn't find someone willing to accep…

Then the question becomes if Sillicon Valley will now also try to hire remotely from a larger talent pool all across the U.S. (or even world).

Re: Tech Workers Take to the Mountains, Bringing Silicon Valley with Them

#16

Post by SilasX »

lotsofpulp wrote: post #8
stanrivers wrote: post #3

Are companies going to start adjusting salaries for people who move (this makes zero sense to me, the value you add most likely doesn’t change because of where you live)? That’s where this gets weird... people move to these better-to-live places and then all the employers decides to pay them less because of location. Then you just push up housing prices with salaries that slowly reset over time to be cost of living a…

>(this makes zero sense to me, the value you add most likely doesn’t change because of where you live)? Price is the intersection of supply and demand. A buyer will ask a seller to accept a lower price if they think the seller is willing to accept a lower price. A seller might accept a lower price if they don't think they can get a higher price. You are paid $X because the buyer couldn't find someone willing to accep…

Yes, that's correct. But the question being asked is why the location changes the $X's there. I don't know that restatement of economic generalities helps unless you're going to apply them to the dynamic being asked about.

Re: Tech Workers Take to the Mountains, Bringing Silicon Valley with Them

#17

Post by gmadsen »

lotsofpulp wrote: post #8
stanrivers wrote: post #3

Are companies going to start adjusting salaries for people who move (this makes zero sense to me, the value you add most likely doesn’t change because of where you live)? That’s where this gets weird... people move to these better-to-live places and then all the employers decides to pay them less because of location. Then you just push up housing prices with salaries that slowly reset over time to be cost of living a…

>(this makes zero sense to me, the value you add most likely doesn’t change because of where you live)? Price is the intersection of supply and demand. A buyer will ask a seller to accept a lower price if they think the seller is willing to accept a lower price. A seller might accept a lower price if they don't think they can get a higher price. You are paid $X because the buyer couldn't find someone willing to accep…

agreed if someone is remote is SF or remote in Wyoming, the pay will not depend on the employees personal expenses, but there might be a price differentiator for an SF employee that can come to the office within a moments notice. That adds value that has a cost associated with it.

Re: Tech Workers Take to the Mountains, Bringing Silicon Valley with Them

#18

Post by drewda »

stanrivers wrote: post #3

Are companies going to start adjusting salaries for people who move (this makes zero sense to me, the value you add most likely doesn’t change because of where you live)? That’s where this gets weird... people move to these better-to-live places and then all the employers decides to pay them less because of location. Then you just push up housing prices with salaries that slowly reset over time to be cost of living a…

Facebook announced that they'd be adjusting employee salaries by new home location at the start of the new calendar year, I think.

Some more distributed companies like Salesforce have been adjusting compensation for years when employees move from the Bay Area to other office locations.

Re: Tech Workers Take to the Mountains, Bringing Silicon Valley with Them

#19

Post by jojo2333 »

stanrivers wrote: post #3

Are companies going to start adjusting salaries for people who move (this makes zero sense to me, the value you add most likely doesn’t change because of where you live)? That’s where this gets weird... people move to these better-to-live places and then all the employers decides to pay them less because of location. Then you just push up housing prices with salaries that slowly reset over time to be cost of living a…

Of course they are, and it makes perfect sense.
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