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software engineer salary somewhere else is usually more like 20-25% less rather than 50% less -- someone making 140k in SF might make 110k-120k in places like B
by lotharbot 8y ago
software engineer salary somewhere else is usually more like 20-25% less rather than 50% less -- someone making 140k in SF might make 110k-120k in places like Boise or Denver. They'll pay 5k less in taxes (both due to lower total income and lower state tax rates). So saving 18k in housing costs puts them at least in a comparable disposable-income range.
For people in lower-paying careers, the lower housing costs elsewhere almost always dwarf the pay differences. For higher-paying careers, the pay differences are the dominant factor. Mid-range software engineer salary is actually pretty close to the dividing line, which makes it particularly important to evaluate the specific numbers yourself.
- throwawayjava 8y ago> software engineer salary somewhere else is usually more like 20-25% less rather than 50% less -- someone making 140k in SF might make 110k-120k in places like Boise or Denver. Worth pointing out that this function doesn't work for inputs much higher than $150k or so, and doesn't even work at points like $140k depending on the particular candidate.
- Judgmentality 8y ago> someone making 140k in SF might make 110k-120k in places like Boise or Denver As someone who moved from Pittsburgh to San Francisco and had my compensation quadruple, I call bullshit.
- lotharbot 8y agoAs someone who was looking at the data on glassdoor while writing my comment, and who has dealt with offers from recruiters, and who has an extensive network of friends who are open about their earnings, I call bullshit on your calling of bullshit. There are certainly outliers. There are certainly people with excellent skills who are being underutilized, and who will get paid a lot more if they find the exact right fit. Just a wild guess, but you didn't go from 35k in Pittsburgh to 140k in SF, you went from a lot more than that in Pittsburgh to a lot more than that in SF. If you're up in the 200k+ range in software in SF, you'd probably earn a lot less going anywhere except maybe NY or Boston. But if you're in the "average software engineer salary" range in SF, the falloff going to a mid-sized city is not nearly as steep.
- pm90 8y ago> But if you're in the "average software engineer salary" range in SF, the falloff going to a mid-sized city is not nearly as steep. But that is exactly why Engineers want to be in SF! Other markets won’t compensate you nearly as well, or increase your compensation as much, as companies in the Bay Area. However, if one has a family and kids, I could see moving to a city with more affordable housing and good schools as a worthy trade off.
- Judgmentality 8y agoMy point is most engineers in Boise are not making 6 digits. https://www.glassdoor.com/Salaries/boise-software-engineer-salary-SRCH_IL.0,5_IM104_KO6,23.htm https://www.glassdoor.com/Salaries/boise-software-engineer-s...
- lotharbot 8y ago"software engineers" in SF aren't making 140k either. If you look across several software-related job titles that are around 140k in SF (you may have to include terms like "lead" or "senior") you'll find Boise salaries to be closer to 3/4 than 1/2. Some are a little lower, some a little higher. Denver tends to be a little higher than Boise but still well below SF. Housing costs in Denver are also considerably higher than Boise and considerably lower than SF. Which goes back to my original point: that it's particularly important for people in that approximate salary range to run the numbers for themselves and their own situations. While for people making a lot more the higher salary easily dwarfs the CoL and for people making a lot less the CoL easily dwarfs the salary, for people making not-particularly-exceptional salaries within the general software field, the numbers are similar enough that the specific offer + your specific housing need + other personal details can make the difference.
- Judgmentality 8y agoYour own data contradicts your argument. Assuming you're using Glassdoor as a reference like you mentioned, than Boise engineers make $85k and SF engineers make $145k - I am not filtering by title for either of those. My anecdotal experience is engineers in SF make more than $140k, and engineers in Pittsburgh make less than $85k (although this is probably no longer true with all of the self-driving startups there now). I would suspect engineers in Boise make less than Pittsburgh, but I've never talked to anyone there.
- JPKab 8y agoYou are right: your single data point invalidates his theory. /S