4 ms·
I love seeing so many people re-package a news piece based on numbeo's cost of living model which is incredibly flawed and doesn't account for the wide variance
by istorical 10y ago
I love seeing so many people re-package a news piece based on numbeo's cost of living model which is incredibly flawed and doesn't account for the wide variance of the cost of rent depending on whether one is single, is willing to live with roommates, is willing to deal with a longer commute, etc.
Trying to develop a salary + cost of living model that doesn't take into account one's personal priorities and preferences is foolhardy. And the piece Hired wrote did exactly that.
News flash: not everyone who lives in NYC or SF is paying $3000 a month in rent. Many of my friends in NYC are paying $800-1200 for a room in Brooklyn with a 25-35 minute commute on the subway. My friends in SF tell me that they pay more but certainly in the 1000-2000 range not the 2000-3000 range that's always quoted.
Get a significant other and move in together and you can split that in half.
But yes, if you want to live alone, 5 minutes walk from Mission Dolores park in SF or bring a family into Palo Alto then the bay is the worst paying place for you as a software engineer.
On the other hand, if you're willing to commute, or willing to have roommates, cook at home instead buying into the myth that you _have_ to go get brunch at some $12 avocado toast cafe, then you'll likely save more money in the long run in SF or NYC than in the Midwest, and yes, after cost of living and after tax. Unless during your job search you find yourself in the enviable position of finding salary offers in the midwest that are very close to the same salary offers you get in the high COL cities. If you do find that though then by all means live in the midwest. And those situations do exist but it's just that there are far fewer $100,000 jobs in Des Moines, IA than in Brooklyn, NY.
- jnate15 10y agoNot exclusive to the Midwest. Just move to RTP.
- softawre 10y agoYeah, RTP seems nice. My company has it's HQ in Indiana and a big office in RTP. Have considered moving many times...
- deleted 10y ago[deleted]
- tropo 10y agoIf you are willing to suffer like that (have roommates, not have all the kids you might want, not have a stay-at-home parent...) to deal with the cost of rent in San Francisco, then you can also do it elsewhere and live even cheaper. Detroit could be nearly free. So, that doesn't help SF or NYC. The cost-saving measures work elsewhere too, getting you something better or an even lower cost. Living in a place like The Ghost Ship is not good for you, even if you don't actually die in a fire.
- rahimnathwani 10y ago"Detroit could be nearly free." Who would have more money in the bank at the end of the year? A software developer in SF spending $40k on rent, or a software developer in Detroit spending $0 on rent?
- jordanb 10y agoHow about developer trying to pool two high incomes together to make mortgage every month after obliterating years of savings on a down payment, versus one that can easily afford to buy a house with whatever amenities one wants including an easy commute putting 20% down (less than a year's savings) and paying less than 40% of the take home pay per month? The second option is a true story of me here in Chicago.
- deleted 10y ago[deleted]
- softawre 10y agoObviously it depends how much you make in each place. The argument most miss is that if you buy a place in SFO, that rent isn't throwaway, it's equity. Though I live in the Midwest. Was lucky to find a big salary here.
- lithos 10y agoMost of the houses that sell for 'free'/'cheap' have been scavenged over by neighbors and similar. Things like dry wall being ripped out to get copper wiring to sell isn't unusual.
- tannhauser23 10y agoIt's not SF/NY vs. Des Moines. It's SF/NY vs. Seattle/Austin/Denver/LA. Your examples don't disprove the article's main point, which is that the cost of living in the Bay Area (and New York) erodes much of the salary bump you get by working in those places. Paying $1200 to rent a bedroom is normal in NY and SF, but that price will get you an entire apartment or more in many other places. Look, to many of us, the Bay Area is worth its high cost - being in the center of the tech industry, surrounded by thousands of companies, and enjoying the beautiful weather of this region makes up for expensive housing. But as the tech industry grows in other cities and as their salaries increase, I'm beginning to seriously think about moving. The kind of tradeoffs that I made when I was young, stuff like having roommates, living in a rundown place, longer commute, etc. increasingly don't make sense as I get older. I have a family, and looking for a house in the Bay Area is a sobering affair. Nothing can be had in the Peninsula for under $1.2 million, and even across the Bay homes are $800k plus. Meanwhile my friends in Seattle and other cities are buying real family homes and living the American dream. I have to wonder, is it worth staying here?
- jjtheblunt 10y agoThe answer is no.