Not maybe, it is supply and demand. IF the supply of remote labor does increase then the share of economic profit going to capital also increases. (i.e. Employers keep more of the profits as opposed to sharing)
This is true both ways though. If you're getting paid 140k, but your rent is 5k a month, you're only capturing 80k of wages, and the landlords are capturing 60k in rent.
If you're working remotely for 100k, and paying 1.7k a month in rent, you're capturing ~80k as well. That means more capital is going to the employers(who saves 40k) at the expense of the landlords (who lose out on that 40k).
I honestly think I'd rather have the capital go to the employers because a) it improves my value in relation to them (I now can argue that I should get paid more, because I bring in 40k a year more value than I did in SV) AND I have a financial interest in the company doing well (with options/RSUs/bonuses/etc).
The money going to the landlords starts to become very literally "rent seeking" where they will capture the capital without providing any productivity gains in return. You could argue that their value in "provide a location for people to live so they can collaborate more effectively" is decreasing with remote work, and they will have to charge less because the value they provide is decreasing.
The formula is different if you are a home owner, at least it was when there was more appreciation. You don't mind paying a higher mortgage as much if you are capturing a huge chunk of your current salary in home equity each year. Bay area home ownership is where a lot of people made their money.
The bay area is one of the worse places to have rental properties in the country though in terms of ratio of rental income to mortgage costs. If it wasn't for appreciation most would sell instead of try to rent out homes. Landlords aren't making their money from the rents, they are making it from the appreciation.
If a landowner is having trouble making a profit on rent due to high mortgage costs, that just means that the wealth was captured by the previous owner via a high sale price. So the point still stands that a disproportionate amount of wealth is flowing to land instead of capital or labor.
It most certainly is, if at the same time you're hanging out at city council meetings protesting construction and housing development. The cost of housing in SFBA isn't really the cost of land - its the cost of regulation. It's the marginal cost of building new housing.
Yes, in a competitive market, rent is your cash flow. It pays recurring property taxes, maintenance, and interest. It's a cliche but you really have two opportunities to make money in rental property: when you buy, and when you sell.
That's in an academically perfect economic system, and labor is not that. People have been able to get cheap engineering labor from India for decades and wages have still been climbing. Businesses choose who they hire for a variety of reasons and price is only a single factor.
Additionally, labor has a say in what they're paid as well and knowledge of what the average pay is for a given job in their country, region, or city. They can also talk to their fellow employees when they're hired and then push for a hire wage when they find out they're making less then everyone else doing the same job. Just because someone lives in Wisconsin doesn't mean they just accept any offer at a discount simply because HR has a bar chart says they should be paid 35% less then someone else.
If you're working remotely for 100k, and paying 1.7k a month in rent, you're capturing ~80k as well. That means more capital is going to the employers(who saves 40k) at the expense of the landlords (who lose out on that 40k).
I honestly think I'd rather have the capital go to the employers because a) it improves my value in relation to them (I now can argue that I should get paid more, because I bring in 40k a year more value than I did in SV) AND I have a financial interest in the company doing well (with options/RSUs/bonuses/etc).
The money going to the landlords starts to become very literally "rent seeking" where they will capture the capital without providing any productivity gains in return. You could argue that their value in "provide a location for people to live so they can collaborate more effectively" is decreasing with remote work, and they will have to charge less because the value they provide is decreasing.