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San Francisco Tech Firms See Workers Flee from $4,500 Rents

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Re: San Francisco Tech Firms See Workers Flee from $4,500 Rents

#71

Post by davidw »

maerF0x0 wrote: post #59
dionidium wrote: post #45

Earlier quoted context omitted.

You're right, of course, but this sentiment amounts to little more than stomping your feet and wishing the world were different. As long as there is high demand, you can either build more or expect higher prices and more sprawl. I get that people don't like those choices, but that's what's on the table.

High local prices can be addressed with "distributed sprawl". ie growth in other cities.

I think the problem with that logic is that the people at the 'top of the heap' - VC's, CEO's and the like are not the ones being priced out, mostly. Granted, a company might open an office somewhere else, but that's after it's already large and established.

So you're kicking the marginal (in the economic sense) people out into marginal places where they have less access to what made the original area such a great place to have a job.

Re: San Francisco Tech Firms See Workers Flee from $4,500 Rents

#72

Post by blacksmith_tb »

ethanbond wrote: post #70
1_2__3 wrote: post #22

Earlier quoted context omitted.

Do you somehow think those places are significantly cheaper than San Francisco? They're not.

... What? Cost of living index compared to San Francisco according to WolframAlpha: Seattle -20% Phoenix -42% Austin -43%

I have to say I was impressed to see that Manhattan is +29.6% to San Francisco. SF was certainly the most expensive place I've ever lived.

Re: San Francisco Tech Firms See Workers Flee from $4,500 Rents

#73

Post by orestes910 »

Apocryphon wrote: post #58
peterwwillis wrote: post #53

Earlier quoted context omitted.

The DMV area? Its rents are fairly consistent, gentrification is pretty slow-and-steady, and the only growing pain I see is poor transportation options. But DMV is full of established companies and government work, not trendy startups. If San Francisco's high rents are due to startup culture, you may find more average rents where the tech isn't trendy.

Sorry, but I've never heard of that acronym for a metro before. Where's the DMV?

Delaware, Maryland, Virginia

Re: San Francisco Tech Firms See Workers Flee from $4,500 Rents

#74

Post by eikenberry »

simook wrote: post #2

Portland resident here. What this article doesn't cover, is now locals are victim of gentrification. Rent prices are almost 2x, out of state buyers are throwing all cash offers on houses, and overall housing supply is low... I'm sure the commercial market is just as bad. Interesting times.

We're still recovering from the housing bubble bursting. When that happened a ton of developers went out of business and building came to a stand still. The market demand eventually caught up with the overbuilding from during the bubble and have passed it creating a shortage again while the developers get to building. It should level off again in a few years as long as the city doesn't make zoning mistakes.

Re: San Francisco Tech Firms See Workers Flee from $4,500 Rents

#75

Post by peterwwillis »

orestes910 wrote: post #73
Apocryphon wrote: post #58

Earlier quoted context omitted.

Sorry, but I've never heard of that acronym for a metro before. Where's the DMV?

Delaware, Maryland, Virginia

DC, Maryland, Virgina. Also known as the Washington metropolitan area (https://en.wikipedia.org/wiki/Washington_metropolitan_area). Delaware doesn't have much of a tech sector.

Re: San Francisco Tech Firms See Workers Flee from $4,500 Rents

#76

Post by Apocryphon »

peterwwillis wrote: post #75
orestes910 wrote: post #73

Earlier quoted context omitted.

Delaware, Maryland, Virginia

DC, Maryland, Virgina. Also known as the Washington metropolitan area ( https://en.wikipedia.org/wiki/Washington_metropolitan_area ). Delaware doesn't have much of a tech sector.

I've heard Richmond, VA is a new hip city, but I'm unaware of tech being there.

Re: San Francisco Tech Firms See Workers Flee from $4,500 Rents

#77

Post by dionidium »

pessimizer wrote: post #66
dionidium wrote: post #47

Earlier quoted context omitted.

They go into higher-density buildings, just like everybody else. That, or nothing changes and they get priced out. Those are the options.

So projects, then.

That's a glib response, but I do want to bring attention to how often this discussion generates such glib responses. If it's not, "so, projects, then" it's "so, you want San Francisco to look like Manhattan, then?" or some equivalent.

Notice how these responses do absolutely nothing to address the issue. They exist only to express dissatisfaction with realistic options.

Again, you can either build to meet demand or expect higher prices. Those are the options.

Re: San Francisco Tech Firms See Workers Flee from $4,500 Rents

#78

Post by sov »

pessimizer wrote: post #65
sov wrote: post #29

Earlier quoted context omitted.

It's interesting that Seattle's rent has raised 38 percent, but I am left wondering if some of that is related to their ~37% minimum wage increase in the last year.

What possible connection could there be? Does minimum wage now change property values? Are all housing units in Seattle occupied by minimum wage workers? The average rent in Seattle for a one bedroom apartment is around $1600, which is around 100% of what a minimum wage worker made there two years ago - coincidence or no? It's all just so interesting, I think?

No need for the snark, friend. Is it really that much of a stretch to think that minimum wage increases (more money in the hands of lower-income earners) semi-proportionately increases localized prices?

Do you truly think it's necessary that all houses in Seattle must be occupied by minimum wage workers in order for it to affect the cost of living?

Re: San Francisco Tech Firms See Workers Flee from $4,500 Rents

#79

Post by peterwwillis »

Apocryphon wrote: post #76
peterwwillis wrote: post #75

Earlier quoted context omitted.

DC, Maryland, Virgina. Also known as the Washington metropolitan area ( https://en.wikipedia.org/wiki/Washington_metropolitan_area ). Delaware doesn't have much of a tech sector.

I've heard Richmond, VA is a new hip city, but I'm unaware of tech being there.

Richmond is several hours away from the DMV metro area. It's... alright? But I wouldn't call it a metro area. It's more like a college town that has a foodie and music scene, and of course is chock full of history, being the national capital of the Confederacy and instrumental in providing support for the American Revolutionary War and later industrial power.

Re: San Francisco Tech Firms See Workers Flee from $4,500 Rents

#80

Post by jrjarrett »

leesalminen wrote: post #14
cmurf wrote: post #10

Earlier quoted context omitted.

Same in Denver. Realtor told me 1/4 of properties don't make the MLS, they're bought with cash before they can get listed.

Boulder as well. A buddy of mine had a hell of a time getting a condo with a mortgage. They were all bought up in cash within a day or 2.

Who are these people and where are they getting that kind of cash?
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