3 ms·
There’s gotta be some limit to how many cities can maintain insane rents. High salaries spread across 10 cities instead of 1 should be a much saner equilibrium
by redisman 6y ago
There’s gotta be some limit to how many cities can maintain insane rents. High salaries spread across 10 cities instead of 1 should be a much saner equilibrium unless the tech workforce and salaries multiples in number too
- dcolkitt 6y agoI guess one issue is that most of the new tech hubs tend to be mid-sized cities that don't really have the capacity. Austin metro is 2.2 million. Denver is 2.9 million. Nashville is 1.9 million. In contrast the Bay Area has 10 million people, and even that struggles to absorb tech wealth. I think dissipation would happen if tech was actually expanding into a few large metros. Houston, Chicago, and Miami all have reasonable COL, but more importantly have way more population to absorb an influx of high wage earners. It's an interesting question, and one I don't really know the answer to. Why does the tech industry seem to consistently prefer mid-size metros like Austin to large metros like Miami.