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You’re forgetting about the overpaid tech workers who are soon to be laid off, possibly underwater on their mortgages, and decide it’s time to downsize.
by datalopers 4y ago
You’re forgetting about the overpaid tech workers who are soon to be laid off, possibly underwater on their mortgages, and decide it’s time to downsize.
- riku_iki 4y agoThere are amazon, google, msft and apple, with almost $1trln annual revenue combined, they will continue paying to a plenty of workers.
- datalopers 4y agoCool, I’ll let YC’s entire portfolio know there’s plenty of jobs at the big tech cos.
- riku_iki 4y agoYou are switching topics. The point is that there will be plenty of funds inflow to support housing market.
- datalopers 4y agoWould you like to place a wager? I bet that the median home price in tech-centric metro areas (seattle, sf/bay, la, nyc) will decline by 10% or more in July 2023 versus July 2022.
- riku_iki 4y ago10% is like small correction comparing to previous increase, and doesn't offset mortgage rate increase.
- tjr225 4y agoFor many in tech metros their homes could decrease in value by 25% or more from their current values and the home would still be worth more than they paid for. In any case they won’t want to sell for a mortgage that effectively costs the same over a 30 year loan with a higher interest rate.
- __turbobrew__ 4y agoMy tech-centric metro area had price increases of over 30% in the past two years so a 10% correction just puts us back to prices 6 months ago.
- djbusby 4y ago!remindme 2023-08-01
- unicornmama 4y agoThose companies are not immune from cutting cash burn to protect their stock price.
- riku_iki 4y agoThey are all have very positive cash flow, so it is unlikely they will be cutting significant amount of fat.
- unicornmama 4y agoThey are not valued on a binary positive or negative cashfows. They are valued at NPV of future cashflows. You can justify a high burn rate with the expectation of earnings in the distant future. But as inflation/rfr goes up then then investors value money today more and more and money in the future less and less.
- pcbro141 4y agoOverpaid based on what?
- datalopers 4y agoOverpaid in the same way publicly traded tech stocks and VC/PE valuations were grossly inflated. Salaries are going to come down just like valuations. As people generally won’t accept paycuts, it’ll come in the form of laying off 2 engineers and backfilling 1 of them at half the prior salary rate. VC backed companies will start dropping like flies and the market will flood and salary requirements will drop fast.