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Most cities look at large-scale, high-salary employers as a good thing; they go out of their way to solicit them, because high-income employees consume fewer se
by michaelochurch 13y ago
Most cities look at large-scale, high-salary employers as a good thing; they go out of their way to solicit them, because high-income employees consume fewer services while paying more into the system, and because those employees are extremely valuable to the local retail economy. Most cities would see techies as a good thing: they ride bikes, they buy expensive local coffee, they eat out all the time, they're statistically very unlikely to mug people or steal cars.
I was in Austin recently and I definitely felt a much more positive energy out there than in California. At first, it was weird. "Wait, people here want people like us to move in?"
As an economic arrangement, homeownership is (IMO) a less-than-optimal one-- possibly better than renting but only because the government makes it so-- but it's good for civic virtue because when middle-class people can own houses, there's a focus on making the place better for everyone (since you're planning to be there for several years) rather than this zero-sum mentality you get in the coastal star cities.
- tptacek 13y agoOwners vs. renters is of course one of the defining class conflicts of San Francisco.
- michaelochurch 13y agoIt's especially hilarious in New York, where purchase prices are now 40-50 years' worth of rent. At that level, buying is a terrible economic decision, unless you're doing it for prestige. People are that desperate to join the owning class, I guess.
- fiskiran 13y agoIs there a generally accepted ratio where it becomes preferable to buy in NYC? You may find sales at 10- to 20-years' rent in the suburbs but I doubt it ever gets that low in Manhattan ever, even during the low points in the real estate cycle. So it seems buying here will always have some speculative component.