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Most of the renters I know in the bay area rent a house with 3-4 roommates and pay reasonable rent with that split ($1400/month -> $1900/month each for a room i
by fossuser 7y ago
Most of the renters I know in the bay area rent a house with 3-4 roommates and pay reasonable rent with that split ($1400/month -> $1900/month each for a room in the house).
Then saving as much as possible and hoping stock or RSUs will get you the rest of the way there to buying something (or buying a 1 or 2 bedroom for ~one million once you find an SO and working from there).
- souprock 7y ago"reasonable" is relative to what you get, and nothing in that area is reasonable. In no way is $1400 to $1900 per month reasonable for just a room. For that price you ought to get a 1500 to 2200 sq ft detached 3-bedroom or 4-bedroom house on a quarter acre lot.
- fossuser 7y agoReasonable relative to income is what I'm talking about. If you're able to get total comp from 200k -> 400k and save 50% of that or more per year into a total market index fund for ten years that's pretty good, especially if you start at 21 or 22 out of school. The economics make sense even when you ignore the other benefits (great environment for cycling, running, general outdoor activities - huge amount of smart people to learn from and work with, huge amount of companies hiring, startup opportunity, high quality food, etc.) It's still a shame though because if Prop 13 was phased out and housing was built we could have all of this without having to waste huge amounts of money on overpriced, run down, tiny little houses, but that's Moloch [0] for you and local NIMBYs operating in their own self-interest. [0]: https://slatestarcodex.com/2014/07/30/meditations-on-moloch/ https://slatestarcodex.com/2014/07/30/meditations-on-moloch/