Re:The majority of 18- to 29-year-olds in the US are now liv...
by charlesu on Wednesday September 16, 2020 @05:28PM
(#24498172)
Not sure that's true. L8 at Google is a total compensation of >$500k. You can afford to live on that in the Bay Area.
If you leave Google for a job in Raleigh, you're probably going to take a massive pay cut. Remember, the average SWE makes like ~$100k. It's not nothing but it's not that great either after you factor in a mortgage, car insurance, gas, utilities, food, retirement, and increased healthcare costs due to being on an inferior health insurance plan. At a certain point, you're better off at Google.
Buying a custom tailored suit requires extra/better labour and materials, so it makes sense that the costs associated with it would be higher.
For this analogy to apply to housing, the cost of constructing and maintaining housing should be higher in the Bay Area too. However, almost all the increases to rent in urban areas has come from increased land values. This isn't a result of the landowner putting in "extra work" to make it better; they get to extract the added land value that the community created while putting in no extra labour or capital.
The fact that private landowners capture all this extra value the community created is not inevitable! It's entirely a result of the economic system we've chosen to stick with. There are solutions that are both more fair, and economically efficient [0].
[0] - See https://en.wikipedia.org/wiki/Georgism and https://en.wikipedia.org/wiki/Land_value_tax