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Employees at Airbnb, Square and Stripe Are Spending 50%+ of Income on SF Rent

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Re: Employees at Airbnb, Square and Stripe Are Spending 50%+ of Income on SF Rent

#261
post #119

Earlier quoted context omitted.

If you are losing money, you aren't doing it right. Sure, maybe you would be better off somewhere where the competition isn't as hard, and the living costs aren't as high.

The whole context of this thread is insane rent prices, aka losing money.

No, the context is insane rent prices. That doesn't translate to losing money. Several people have stated that the difference in salary is making up for it, to where they have as much after rent, after tax income or more than in other places.

Re: Employees at Airbnb, Square and Stripe Are Spending 50%+ of Income on SF Rent

#262
Nobody wants to bother questioning the numbers. The first line shows Zynga, $3545, $147K, 47%. First hit on federal income tax calculator using single standard deduction no kids gets a federal tax liability of $30K, leaving $117K or a monthly of $9750, so $3545 is 37% of after tax income, which is not too bad. And anyone making a decent income should put some thought and money into deductions: 401k+HSA/FSA being the obvious ones. But actually, the 30% of monthly is generally calculated before taxes, so at 147K the monthly rent could be up to $3675. Not that I'm recommending spending that much or approving of the astronomical SF rents, but any article on the subject should at least do math correctly.

No, what's really going on is a certain company is trying to justify paying employees 20% less, under the excuse that local cost of living is lower. So if I live in SF in my parent's house and pay little to no rent, someone can pay me less? What if I eat ramen instead of going out to eat every night? That's absurd -- we should be paid according to what value we bring and it's up to us how much we spend on cost of living. In fact, a company in LA that can't attract top talent such as presumably are now in SF should be offering even higher salaries.

Re: Employees at Airbnb, Square and Stripe Are Spending 50%+ of Income on SF Rent

#263

Earlier quoted context omitted.

> I can safely say quality of life in Houston and San Antonio is far better than people on HN believe. Unless you have a family. Texas schools are absolutely terrible.

That's a broad and rather incomplete generalization. I spent two years in a California high school and two years in a Texas high school. I have seen first hand how terrible schools can be in CA and, conversely, how fantastic they can be in Texas. For reference, I'm comparing Benicia HS in the North Bay with Seven Lakes HS in suburban Houston. In California, teachers were restricted to six pieces of copier paper per s…

Let's take a look at the data:

"Texas earns C-minus, ranks 39th in nation on education ranking"

* 52 percent of 3- and 4-year-olds in the state are not in school.

* Hispanics had the lowest rate of 4-year-olds enrolled in preschool at 39 percent. Meanwhile about half of black, white and Asian 4-year-olds were enrolled.

* 64 percent of of 3- and 4-year-olds in households earning at least $100,000 or more attend preschool compared to 40 percent of those living in households earning less than $20,000.

* About 44 percent of those enrolled in Texas preschool attended a private school.

http://educationblog.dallasnews.com/2015/01/texas-earns-c-mi...

Re: Employees at Airbnb, Square and Stripe Are Spending 50%+ of Income on SF Rent

#265

Earlier quoted context omitted.

That's a broad and rather incomplete generalization. I spent two years in a California high school and two years in a Texas high school. I have seen first hand how terrible schools can be in CA and, conversely, how fantastic they can be in Texas. For reference, I'm comparing Benicia HS in the North Bay with Seven Lakes HS in suburban Houston. In California, teachers were restricted to six pieces of copier paper per s…

Let's take a look at the data: "Texas earns C-minus, ranks 39th in nation on education ranking" * 52 percent of 3- and 4-year-olds in the state are not in school. * Hispanics had the lowest rate of 4-year-olds enrolled in preschool at 39 percent. Meanwhile about half of black, white and Asian 4-year-olds were enrolled. * 64 percent of of 3- and 4-year-olds in households earning at least $100,000 or more attend presch…

> "Texas earns C-minus, ranks 39th in nation on education ranking"

California ranked 42nd in the same report with a score of D+. [1]

I'm obviously not arguing that every school in Texas is good. There are some utterly terrible districts in that state.

I don't think anyone would that point.

But there are also some great schools. The existence of some (even many) bad schools shouldn't necessarily deter someone from moving to a community in Texas with good schools.

All of that applies equally to California—there are some horrible schools there too.

[1] http://www.edweek.org/ew/qc/2015/state-highlights/2015/01/08...

Re: Employees at Airbnb, Square and Stripe Are Spending 50%+ of Income on SF Rent

#266

I recently turned-down a great job offer for a Bay area tech company. Their office was just too far outside my commute range. I even offered to remote-work part-time and be in the office some days a week (I had already been a 100% remote worker for 3+ years, so I had a proven track record as a remote worker). But the founder insisted everyone be on-site, daily, even though many aspects of the company were quite comfo…

"This "must be colocated" mind-set is lose-lose no matter which way you cut it."

Is it? Are they that starved for talent? You turned it down, but was it that hard for them to find another?

Re: Employees at Airbnb, Square and Stripe Are Spending 50%+ of Income on SF Rent

#267

Earlier quoted context omitted.

Let's take a look at the data: "Texas earns C-minus, ranks 39th in nation on education ranking" * 52 percent of 3- and 4-year-olds in the state are not in school. * Hispanics had the lowest rate of 4-year-olds enrolled in preschool at 39 percent. Meanwhile about half of black, white and Asian 4-year-olds were enrolled. * 64 percent of of 3- and 4-year-olds in households earning at least $100,000 or more attend presch…

> "Texas earns C-minus, ranks 39th in nation on education ranking" California ranked 42nd in the same report with a score of D+. [1] I'm obviously not arguing that every school in Texas is good. There are some utterly terrible districts in that state. I don't think anyone would that point. But there are also some great schools. The existence of some (even many) bad schools shouldn't necessarily deter someone from mov…

I'm not arguing California is better; I'm arguing there are plenty of places to go that are better than Texas.

Re: Employees at Airbnb, Square and Stripe Are Spending 50%+ of Income on SF Rent

#268
post #60

Earlier quoted context omitted.

I think his/her strategy of working in SF for a few months at first is not to become "super rich", but to establish a high salary that could then be "exported" to a cheaper area while staying on with the same company.

I'm reasonably sure that a decrease in CoL would be adjusted into the salary, or at the least, any company in a lower CoL is less likely to give a competitive salary.

Why? Does the value they contribute to the business change that much simply because they can now live cheaper?

Re: Employees at Airbnb, Square and Stripe Are Spending 50%+ of Income on SF Rent

#269

Earlier quoted context omitted.

There is a reason why it's cheap to live in Detroit, and why salaries are less. Cheap cost of living isn't unique to Detroit.

sure, a cheap cost of living can be had anywhere in the world. but I think it's unique in a 4 million+ person metro area in the united states. Especially with the history and architecture that Detroit has.

Not really. Check out Indy, Columbus, and Nashville, just to name a few.

Re: Employees at Airbnb, Square and Stripe Are Spending 50%+ of Income on SF Rent

#270
post #216

Earlier quoted context omitted.

I remember that winter well. I was founder-CTO of a Silicon Valley-based startup, and we were working on a big deal with Microsoft. After they hired away the first two people we put on the project, I stepped in, and spent several weeks a month up in the Seattle area. I still remember telling the board, "the only way they'll be able to hire me is to buy the company!" and we all had a good laugh. Which is of course wha…

Hey Jon - I don't think I've seen you since you ran those Ad Astra hackathons inside MS. Hope you're doing well! Huh, just noticed this: http://minimsft.blogspot.com/2007/11/low-hanging-late-harves... It looks like you and I left Microsoft in the same week. Funny timing.

Hi Aaron, hah, I had forgotten all about that link. Thanks Mini! And as for us leaving at the same time, funny how that works :)
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