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All excellent points I make myself but let’s say you move out of SF and no longer pay $3000/mo in rent but now pay half that $1500/mo. You’re now saving $18,00

All excellent points I make myself but let’s say you move out of SF and no longer pay $3000/mo in rent but now pay half that $1500/mo. You’re now saving $18,000 a year which is cool but almost al your other expenses stay the same (car, Xbox, TV, Internet, insurance, etc). You’re going to lose more than $18,000/yr in TC in the near term and long term (after you leave stripe) you sure and he’ll are. So the moral of my story is don’t move out of a high cost city for the money, it doesn’t add up. Move out for a myriad of other reasons that may be meaningful for you (family, life, etc)

edmundsauto 6y ago
This isn't really true. Everything in the Bay Area is more expensive. A quick Numbeo search, I found that housing in SF is a little more than 2x as expensive as in Austin, so somewhere around the same ratio. Consumer prices, excluding rent, are 43% higher in SF than Austin. Even your chain restaurants are more pricey. Everyone has to pay rent, ya know?
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UncleMeat 6y ago
Depends on your needs. My wife and I both work remotely now. We need a 3BR place to stay sane because we need two offices. Compared to the south bay, we are saving >3000/m in rent. At a high compensation, marginal tax rates in CA approach 50%. So that 36000 saved is worth 72000 in TC difference. It gets more dramatic if you pay for childcare. Childcare in the bay area can easily run 20000 more than it might cost in a lower cost of living area. A family of four that has two kids in day care might save 60000 just off rent and childcare differences. On the other hand, for single people who would have a 1BR wherever they chose to live, the rent difference may only be 20000 and the rest of expenses don't change much and then suddenly dropping 20% on your 200,000 TC ends up being a bad deal.

edmundsauto 6y ago

This isn't really true. Everything in the Bay Area is more expensive. A quick Numbeo search, I found that housing in SF is a little more than 2x as expensive as in Austin, so somewhere around the same ratio. Consumer prices, excluding rent, are 43% higher in SF than Austin. Even your chain restaurants are more pricey. Everyone has to pay rent, ya know?

deleted 6y ago
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UncleMeat 6y ago

Depends on your needs. My wife and I both work remotely now. We need a 3BR place to stay sane because we need two offices. Compared to the south bay, we are saving >3000/m in rent. At a high compensation, marginal tax rates in CA approach 50%. So that 36000 saved is worth 72000 in TC difference. It gets more dramatic if you pay for childcare. Childcare in the bay area can easily run 20000 more than it might cost in a lower cost of living area. A family of four that has two kids in day care might save 60000 just off rent and childcare differences. On the other hand, for single people who would have a 1BR wherever they chose to live, the rent difference may only be 20000 and the rest of expenses don't change much and then suddenly dropping 20% on your 200,000 TC ends up being a bad deal.