Live data from Hacker News

Cities with High Salary to Cost of Living Ratios for Software Developers

tgeonetta.com

11–20 of 267 posts

Re: Cities with High Salary to Cost of Living Ratios for Software Developers

#12
post #11

Is that itemizing the CA taxes or just taking the standard deduction? The rule of thumb in CA is if you make more than $100,000, your state taxes are larger than the standard deduction.

OP here. Good point, it is definitely using standard deduction.

Re: Cities with High Salary to Cost of Living Ratios for Software Developers

#13
post #10

I'm curious if the salaries include stocks and other compensation - my stocks are a large portion of my compensation package, and I work for a major company, not a startup. It makes me wonder if this might skew more in favor of west coast, where (I think?) those compensation schemes are more common - as where I'm at, those numbers all seem really low compared to what most people I know make.

There is a lot of selection bias in the type of people that post on those sites. The salaries are almost always deflated. Software engineers making $200k+ aren't posting on indeed.com.

> The salaries are almost always deflated.

Really? Last I looked self-reported numbers tend to be _inflated_ compared to govt collected figures (from tax returns and payroll reports). My intuitive understanding of this is that people being underpaid tend to not want to brag about it, even anonymously.

Re: Cities with High Salary to Cost of Living Ratios for Software Developers

#14
post #12
post #11

Is that itemizing the CA taxes or just taking the standard deduction? The rule of thumb in CA is if you make more than $100,000, your state taxes are larger than the standard deduction.

OP here. Good point, it is definitely using standard deduction.

well, based on the ADP site, that's about a $3k difference in annual state tax vs. standard deduction for CA, so I don't think that changes things too much, but good to know for someone like me who's already here in san jose.

Re: Cities with High Salary to Cost of Living Ratios for Software Developers

#15
post #13
post #10

Earlier quoted context omitted.

There is a lot of selection bias in the type of people that post on those sites. The salaries are almost always deflated. Software engineers making $200k+ aren't posting on indeed.com.

> The salaries are almost always deflated. Really? Last I looked self-reported numbers tend to be _inflated_ compared to govt collected figures (from tax returns and payroll reports). My intuitive understanding of this is that people being underpaid tend to not want to brag about it, even anonymously.

I don't know what the truth is either, but sites like Glassdoor are specifically designed so you can find out if you're being underpaid, and let others know they're being underpaid. So intuitively it could go the opposite as well. People who think they're getting underpaid report, and people who are clearly not ($200k+ crowd) may not. It would be really interesting to know, though.

Re: Cities with High Salary to Cost of Living Ratios for Software Developers

#16
post #8

I think averaged adjustments for cost of living are senseless as this is quite individual. Let's take me as an example: I manage to live modestly but well on around 1000 CHF (1050 USD) in Zurich while making around 6400 CHF (6700 USD) in net-salary. I am a junior software engineer hacking on Python in a SMB. (Full disclosure: My company is hiring; feel free to reach out to me at iwang{at}fastmail.net. Also, my experi…

> I think averaged adjustments for cost of living are senseless as this is quite individual.

Well it's a base to work from. If it costs, on average X for Y things, and you know you are happy with about half of Y, then it'll still be cheaper to live in Cyanide Springs, Oklahoma, than in central London.

Re: Cities with High Salary to Cost of Living Ratios for Software Developers

#19
I suspect the cost of living data for Austin trails reality by some significant margin. The sources don't indicate the age of the data, but even if it's only a couple of years old, it's going to be wrong by enough to be a factor.

I have lived in Austin for a couple of years, and also lived here (and owned a house here) about 8 years ago. The cost of homes here has gone up tremendously since then. I was shopping for a house a few months ago, and was simply unable to buy one; those in my price range wouldn't accept my offer because it wasn't an all-cash offer (despite being $5000 or more over the asking price). Investors paying cash are buying aggressively here, driving up prices. Rental rates have risen at an even faster pace.

Certainly, it's cheaper here than in Silicon Valley. Five years ago, I was paying $2145 a month in rent for a house a couple of blocks from downtown Mountain View. Today I'm paying $1690 a month for a house quite far outside of downtown Austin and on the east side; renting in downtown is not an option, even at $2000+ a month. Apartments are somewhat cheaper, and buying a house is still notably cheaper than Silicon Valley, but the gap has been closing rapidly.

In short, Austin has grown incredibly fast in recent years, and the real estate market hasn't been able to absorb that growth in anything like a reasonable manner. So much so that I'd be shocked if the graphs in this article still reflect reality for Austin.

Post reply on HN