4 ms·
Because high rents cancel out the benefits of a high salary. It's simple arithmetic. Why give up 30k of a 100k salary to work and live in SF, when I could give
by zasz 8y ago
Because high rents cancel out the benefits of a high salary. It's simple arithmetic. Why give up 30k of a 100k salary to work and live in SF, when I could give up 10k of an 90k salary in Austin instead? (These are just illustrative figures.) And the high price of housing means that even tech workers who want families can't afford the space to raise them.
- no_one_ever 8y agoMy case is interesting. I have big student loan payments that don't adjust to my income or salary. I feel tethered to high CoL areas because those areas offer higher salaries with more take-home income, despite a higher median rent. The best balance for me is a high salary in a low CoL so I don't burn my take-home on rent, but I'd rather be given a larger salary, spend some more on rent, and have more money left over to pay off my debt.
- zasz 8y agoWhat about working remotely?
- s73v3r_ 8y agoCause it's usually 30k of a 180k salary.
- loeg 8y agoPeople will quibble with the exact trade-off in CoL and salary between SFBA and other locations. I don't think there is one general answer — you have to do the math for your specific situation to find out where you earn more money after expenses. Keep in mind Federal graduated taxes don't have any relief for high CoL renters (and the tax benefit for mortgage-holders has been diminished somewhat in the latest tax reforms). Don't forget state income tax, too.