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I think big tech companies are so large that they've realized that if they keep pumping $200k-$500k/yr employees into the bay area (that weren't there before):
by opportune 7y ago
I think big tech companies are so large that they've realized that if they keep pumping $200k-$500k/yr employees into the bay area (that weren't there before):
1. Housing prices will continue to increase since the supply is not changing yet demand (and ability to pay at current prices) is increasing
2.1 Gentrification happens and existing bay area natives get more adversarial to tech companies
2.2 Existing employees experience a decrease in QOL if comp packages remain the same
3. Tech companies keep having to increase TC packages to keep their employees' abilities to purchase homes
Also by expanding into other large markets tech companies can hire people who have lots of ties to an area and don't want to move. This has an added benefit of perhaps not having to offer as much TC since these markets might be less competitive.
- novok 7y agoNYC TC is fairly close to SF TC.
- i_am_proteus 7y agoHowever: 1) Software (&c.) is not the dominant industry, so rising salaries in software does not have an outsized effect on the real estate market. 2) The NYC housing market, unhealthy as it is, is healthier than the SF Bay Area's. NYC is somewhat less geographically constrained and, importantly, has excellent public transit infrastructure for long-distance commutes from lower-cost outer suburbs.
- novok 7y agoSo it's even better, not considering the bad career effects of not being at HQ?
- opportune 7y agoThe NYC housing market is larger and healthier so an increase in X employees there will have less of an impact than an increase of X employees in SV