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> According to the report, when adjusting for inflation, tech salaries plunged to their lowest point in the past five years, decreasing 9% from $141,000 to $129
by superfrank 3y ago
> According to the report, when adjusting for inflation, tech salaries plunged to their lowest point in the past five years, decreasing 9% from $141,000 to $129,000 from 2022 to mid-2023.
So, inflation adjusted, we're back to 2018 levels which doesn't seem too bad. Anecdotally, it felt like that was about when the whole "I get paid $200k and work 2 hours a day" type stories really started to take off. This doesn't feel like a massive issue. Just the bubble deflating a bit.
> Tech professionals have been moving from expensive cities to lower-cost locations. U.S. inflation-adjusted remote salaries have been higher on average. Employers have decreased the number of open roles in high-cost-of-living markets by 19% and have nearly quadrupled the number of positions in low-cost-of-living markets to 9% since 2020.
Completely unsurprising, IMO.
It feels to me like big tech is trimming the fat now that they realized their race to hire as much talent as possible at any cost wasn't paying off and small companies that have embraced remote work have realized there's cheaper options elsewhere.
- makestuff 3y ago> Tech professionals have been moving from expensive cities to lower-cost locations. U.S. inflation-adjusted remote salaries have been higher on average. Employers have decreased the number of open roles in high-cost-of-living markets by 19% and have nearly quadrupled the number of positions in low-cost-of-living markets to 9% since 2020. I wonder if this trend will continue, or if companies will hire for in office roles which are in more HCOL markets. My guess is that the top paying jobs are going to be primarily in office (even when adjusted for COL) because executives will believe that in person collaboration gives them an edge.
- diogenes4 3y agoGives them an edge on harassing their own employees maybe
- jeffbee 3y agoNot only will this trend not continue, it never happened.
- j0hnyl 3y agoOf course it happened and continues to happen. For example, I work for a company that completely got rid of our NYC office during Covid. About 50% of the company no longer lives in NYC...
- Our_Benefactors 3y agoNYC as a city has one of the highest rates of turnover in residents. Not exactly a counter example.
- j0hnyl 3y agoEvery major tech hub city has higher turn over than low cost cities, because they are expensive places to live. NYC is a perfect counter example, because it's THE example along with SF.
- pj_mukh 3y agoNow the question is will the landlords “trim the fat” as well and drop rents. The “2 months off” deals and the bankruptcies due to high vacancies popping up [1] points to the answer being ‘No’. Which means this is a double drop for the residents of the bay. [1] https://www.globest.com/2023/08/22/default-imminent-on-384m-loan-for-nema-san-francisco-tower/?amp=1 https://www.globest.com/2023/08/22/default-imminent-on-384m-...
- jeffbee 3y agoRents in Berkeley have come down more than 10% since 2019.
- AnthonyMouse 3y agoIndividual landlords don't have market power. They'll lower the price when their alternative is that the unit stays empty indefinitely. That means when the supply goes up or the demand goes down. People moving out of the city could reduce demand, if a significant number of people actually do. But this is not a sharp drop and the growth rate is already back to being non-negative: https://www.macrotrends.net/cities/23130/san-francisco/population https://www.macrotrends.net/cities/23130/san-francisco/popul... Lower salaries could reduce demand in a different way. The better way is, of course, to increase supply.
- bugglebeetle 3y agoIt’s funny how when it comes to housing, better way is always to do something that won’t have a meaningful impact on most people for many years or even decades.