Scraping by on six figures? Tech workers feel poor in Silicon Valley's wealth bubble

[Poopymonster]

It's not that simple. You'll leave behind friends, family, and familiarity. Plus you're in the hole so badly that you probably can't afford the time and money to look for another job and therefore another home. Your best option is to live homeless for a while until you save up enough to get the fuck out of Silicon Valley or move in with mom and dad until you find another job. Or what most people are trying to do is live with a friend or loved one until you can figure this shit out. To make matters worse, you aren't the only one, so if you see a home that's just in reach of where you work or a job you wouldn't mind working then there's like 100 other people doing the same thing.

Scarce, overpriced resource, competition for said resource, Capitalism working as intended, comrade...

I am believe there is the mantra of the people who are believe this is good thing no? It involves invisible hands, markets of freedom, and other assorted Glorious Phrases of Masters. I am having found picture that is sum of words they are repeating.



/sarcasm

[Beazy]

You guys can always come to Dallas, I have two positions to fill here @ work for seasoned MVC developers starting @ 90 to 120K. You have to be local, but it beats living in LA for 2k rent for 800sq ft.

And remember, we dont have a state income tax in Tx, and our cost of living is extremely low 5 minutes outside of Dallas city limits, NOT the county.

[Katchii]

Why on earth would your wife go into student dept and then decide to be a stay at home mom?

Late reply but still relevant. Childcare costs are VERY high, especially for children under 3 who aren't potty trained, but even more so for children younger than 2 and even worse for infants. Like $250+(and that's on the low side) a WEEK for kids in that age range. Older than 3 and potty trained can drop to ~$150 a week, either way that's $600-1000 per month, per child MINIMUM for childcare so assuming they have 2 kids that's $1200 - 2000 per month or $14400 - $24000 per year... again....MINIMUM.

That also doesn't include the time and money it costs to get them there or take into account the logistics of getting them there and picking them up on time (most places have a maximum time limit and charge "late fees" if your kids stays longer than allowed).

So yeah, if you're barely making enough to break even or come out slightly ahead..... child care is just not worth it to work.

[Rasulis]

Everyone wants to move to Cali, Seattle, NYC etc. but they don't level set expectations about what comes along with that. I work in Tech and make 100k a year, I also live in Phoenix which is dirt cheap to live in,so I am able to live a great life. My student loans are gone, I just bought a house that I am renovating, getting ready to buy a new car while restoring my old car, oh and by the way i'm 28..........

People are blinded by the idea to work at these trendy companies that are located in these really expensive areas. I was offered a job at a company based on Santa Monica, anyone whos been to Santa Monica knows its not cheap to live there and I told the company I would need 120k a year to live there and be comfortable. They responded that they wouldn't be able to provide that amount of money for the position, I then politely walked away. It was that simple, I don't really understand why people have these blinders on when it comes to this issue.

Comparing Phoenix, AZ to the Bay Area is not a fair comparison. People underestimate the climate factor. The Bay Area climate (going as far back inland as Walnut Creek, San Ramon, Dublin, Pleasanton and Fremont) is mild to the point that people never turn their A.C. or heater on for decades. You could go running in the middle of the day in the middle of summer and not worry about getting a heatstroke. In summer, you don’t have to wait until the evening to run your errands. If you forgot to put up your car shade, your dashboard won’t get all warped and melted.

The article also way overstates its case. If your idea of a perfect house is Pacific Height where you can have a full on view of the bay from your windows, then you either have to make over 1 million a year or get in early (as in early 1990s). However, if you are willing to settle for South San Francisco (former industrial area) which currently going through the process of gentrification, and don’t mind overhead airplane noise from SF International, then you can still get decent houses in the 700 - 800k range.

Richmond, Hayward and Vallejo still has houses in the 400 - 500k range. They are older and smaller houses, but they are perfectly fine for starter house.

Its all a matter of perspective.

[spanishninja]

Comparing Phoenix, AZ to the Bay Area is not a fair comparison. People underestimate the climate factor. The Bay Area climate (going as far back inland as Walnut Creek, San Ramon, Dublin, Pleasanton and Fremont) is mild to the point that people never turn their A.C. or heater on for decades. You could go running in the middle of the day in the middle of summer and not worry about getting a heatstroke. In summer, you don’t have to wait until the evening to run your errands. If you forgot to put up your car shade, your dashboard won’t get all warped and melted.

The article also way overstates its case. If your idea of a perfect house is Pacific Height where you can have a full on view of the bay from your windows, then you either have to make over 1 million a year or get in early (as in early 1990s). However, if you are willing to settle for South San Francisco (former industrial area) which currently going through the process of gentrification, and don’t mind overhead airplane noise from SF International, then you can still get decent houses in the 700 - 800k range.

Richmond, Hayward and Vallejo still has houses in the 400 - 500k range. They are older and smaller houses, but they are perfectly fine for starter house.

Its all a matter of perspective.

I dunno dude. You're suggesting living in a 700-800k house in South San Francisco and put up with airplane noises on the regular...doesn't sound more appealing than running the AC all day in the summer in Phoenix in a house costing 1/3 of that.

[Rasulis]

I dunno dude. You're suggesting living in a 700-800k house in South San Francisco and put up with airplane noises on the regular...doesn't sound more appealing than running the AC all day in the summer in Phoenix in a house costing 1/3 of that.

Two of the most expensive areas in San Diego (La Jolla and Point Loma) are located under the Lindbergh Field Airport flight path. Our old house was under the Miramar Airspace helicopter flight path. Now that’s loud. You can feel the house vibrate when those military helicopters passed overhead. It still sold for 1.2M in 2012.

Like I said. Perspective. Beautiful weather all year long + occasional overhead air traffic vs. one-third housing cost + asphalt melting heat in the summer.

[Themius]

Everyone wants to move to Cali, Seattle, NYC etc. but they don't level set expectations about what comes along with that. I work in Tech and make 100k a year, I also live in Phoenix which is dirt cheap to live in,so I am able to live a great life. My student loans are gone, I just bought a house that I am renovating, getting ready to buy a new car while restoring my old car, oh and by the way i'm 28..........

People are blinded by the idea to work at these trendy companies that are located in these really expensive areas. I was offered a job at a company based on Santa Monica, anyone whos been to Santa Monica knows its not cheap to live there and I told the company I would need 120k a year to live there and be comfortable. They responded that they wouldn't be able to provide that amount of money for the position, I then politely walked away. It was that simple, I don't really understand why people have these blinders on when it comes to this issue.

You can live in jersey for way cheaper.

[Heladys]

House-poor is a real thing in certain markets. Doesn't matter if you're paid top dollar if it costs you even higher dollar to live there.

In free-market theory this would drive people away from those jobs, but in actual capitalist reality it just means people living in grossly overpriced squalor and barely making ends meet, if at all.

Even if you feel no sympathy for the tech people, imagine the house cleaner who can't live within two hours of their job.

[purebalance]

I pay 40% of my income (pre-tax) on rent. It's kind of ridiculous for me and it's even more ridiculous for them. 2k a month for a room in a house is just absurd.

There's studio apartments in DC that aren't that nice that range that high(granted you have privacy and a little more space). There's also some renters near colleges in the area asking 2k for just a room(shocker nobody has taken them).

[Mafic]

Everyone wants to move to Cali, Seattle, NYC etc. but they don't level set expectations about what comes along with that. I work in Tech and make 100k a year, I also live in Phoenix which is dirt cheap to live in,so I am able to live a great life. My student loans are gone, I just bought a house that I am renovating, getting ready to buy a new car while restoring my old car, oh and by the way i'm 28..........

People are blinded by the idea to work at these trendy companies that are located in these really expensive areas. I was offered a job at a company based on Santa Monica, anyone whos been to Santa Monica knows its not cheap to live there and I told the company I would need 120k a year to live there and be comfortable. They responded that they wouldn't be able to provide that amount of money for the position, I then politely walked away. It was that simple, I don't really understand why people have these blinders on when it comes to this issue.

Most people don't travel around much and are not aware of places like Santa Monica. Santa Monica is a nice place to visit but no average person can ever to afford to live there even for a few months.

[Symphonic]

Have these 1%ers considered building a home? Rent is absurdly high.

That being said, 3000 dollars a month x 12 is 36,000 dollars a year. Subtract from his 160k income and he's left with 124,000 dollars. I'm pretty sure you can afford a decent living with $10,333 a month after taking account for rent.

[Draco-Onis]

Everyone wants to move to Cali, Seattle, NYC etc. but they don't level set expectations about what comes along with that. I work in Tech and make 100k a year, I also live in Phoenix which is dirt cheap to live in,so I am able to live a great life. My student loans are gone, I just bought a house that I am renovating, getting ready to buy a new car while restoring my old car, oh and by the way i'm 28..........

People are blinded by the idea to work at these trendy companies that are located in these really expensive areas. I was offered a job at a company based on Santa Monica, anyone whos been to Santa Monica knows its not cheap to live there and I told the company I would need 120k a year to live there and be comfortable. They responded that they wouldn't be able to provide that amount of money for the position, I then politely walked away. It was that simple, I don't really understand why people have these blinders on when it comes to this issue.

I am not sure what you are talking about unless you live in the main cities, you can live very cheaply in the suburbs (30 minutes away) and for those who don't mind a trip the boonies (1 hour+ away). I bought my first place when I was 24 with 30% down payment and paid it off rather easily, the people who complain about money are those who have to live right in the big city where you pay 10 - 30 times more then if you were willing to commute for a bit. I don't get the insanity but some people want to keep up with the Joneses.

[Molis]

Yes the prices of the bay area are high.

I just did some quick math in my head and 27% of my income go towards my house.

I have no other debt. Have no issues going on vacations, eating out when I want.


These are simply people that earn $150K to $200K, and live out side their means.

High car payment
Dinner out every night
Star bucks every day
Extravagant weekend vacations.

I have no sympathy for people that make poor life choices.

[spanishninja]

Two of the most expensive areas in San Diego (La Jolla and Point Loma) are located under the Lindbergh Field Airport flight path. Our old house was under the Miramar Airspace helicopter flight path. Now that’s loud. You can feel the house vibrate when those military helicopters passed overhead. It still sold for 1.2M in 2012.

Like I said. Perspective. Beautiful weather all year long + occasional overhead air traffic vs. one-third housing cost + asphalt melting heat in the summer.

again, property prices are not necessarily indicative of quality of life. San Diego is a completely different beast these days. Road traffic is getting worse by the year, as someone who works a field based job in that territory.

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In upstate NY near Buffalo I pay 500 a month for a 2 bedroom. Rent is about 1/20th of my income and the place is really nice to. I always forget the vast disparity in cost of living across the country.

I lived in Wisconsin for a few years, and it was something similar. It's amazing the kind of money people are willing to part with just to be in the "cool" parts of the country.

[Paula Deen]

Have any of these people stopped to think and realized that the only reason they are getting paid such wildly inflated salaries in the first place is to cover the cost of living in an expensive area, and not because their jobs serve such an important societal function?

In Indiana the few jobs we have in the field pay the same, so no, it has nothing to do with location.

[Rukario]

Avoid marriage and kids...it is simple like that, costs are too high and it would be good if birth rates went down anyway.

He could be living his 40s like a king...instead, oh well.

[Beazy]

Have these 1%ers considered building a home? Rent is absurdly high.

That being said, 3000 dollars a month x 12 is 36,000 dollars a year. Subtract from his 160k income and he's left with 124,000 dollars. I'm pretty sure you can afford a decent living with $10,333 a month after taking account for rent.

You have to take into account what a paycheck in CA @ 160k a year will look like after Insurance, Federal Income tax, State income tax, and SS are deducted.

I feel sorry for those who have to pay a state income tax. /hug

[netherflame]

I am not sure what you are talking about unless you live in the main cities, you can live very cheaply in the suburbs (30 minutes away) and for those who don't mind a trip the boonies (1 hour+ away). I bought my first place when I was 24 with 30% down payment and paid it off rather easily, the people who complain about money are those who have to live right in the big city where you pay 10 - 30 times more then if you were willing to commute for a bit. I don't get the insanity but some people want to keep up with the Joneses.

Yes, that is the implication based on the article.

[Rasulis]

again, property prices are not necessarily indicative of quality of life. San Diego is a completely different beast these days. Road traffic is getting worse by the year, as someone who works a field based job in that territory.

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I lived in Wisconsin for a few years, and it was something similar. It's amazing the kind of money people are willing to part with just to be in the "cool" parts of the country.

You mean people are willing to pay those prices for no reason?

Also, people way underestimate how much tech workers actually make in the Bay Area. My roommate & I worked part time at Oracle in early to mid 1980s while going to school at Berkeley. We were making over 30k a year already back then.

My brother-in-law graduated with a PhD in mechanical engineering from Stanford. He was making 150k at his first job in San Jose in the early 1990s.

My nephew graduated from Caltech with a degree in Planetary Science specializing in 3-d visual recognition and geospatial mapping. He received a six-figure offer from JPL which was doubled by Google (they wanted him for their self driving car division).

Silicon Valley is a weird place.

[spanishninja]

You mean people are willing to pay those prices for no reason?

Also, people way underestimate how much tech workers actually make in the Bay Area. My roommate & I worked part time at Oracle in early to mid 1980s while going to school at Berkeley. We were making over 30k a year already back then.

My brother-in-law graduated with a PhD in mechanical engineering from Stanford. He was making 150k at his first job in San Jose in the early 1990s.

My nephew graduated from Caltech with a degree in Planetary Science specializing in 3-d visual recognition and geospatial mapping. He received a six-figure offer from JPL which was doubled by Google (they wanted him for their self driving car division).

Silicon Valley is a weird place.

Oh I am not underestimating their salaries at all. I know it's ridiculous. But when you hear stories about how a dude making $160,000 can't make ends meet, the absolute salary itself becomes less of a thing compared to income adjusted for cost of living. Supply and demand of real estate only exacerbates that. I make just north of $100k and live in the Inland Empire of SoCal, I simply do not have this same problem, despite making significantly fewer absolute dollars.