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by FiatLuxDave 301 days ago
As far as I can tell, the problem isn't so much a lack of jobs or a lack of homes but rather that they aren't in the same place. In small town America, the problem isn't a lack of housing stock, it's that it is hard to afford it with few good paying jobs. In big city America, the problem isn't lack of jobs, it's that it is hard to find a job which pays enough for you to afford the limited housing stock.

I think this is a large reason behind the polarization in America today. We aren't all facing the same aspect of this imbalance.

I was hoping that the work-from-home movement was going to help with this, but RTO seems to be in full swing. So, I think our best bet would be to stop incentivizing the concentration of job creation. Absent a fix, we will have to wait a few decades for the imbalance to even out.

3 comments

Always hated how every startup sets up office in downtown San Francisco or similarly absurd cost of living area…

Could pay people well but half as much and have nice office in Colorado mountains, Vermont, or somewhere else beautiful…

Of course, startups rarely seem interested in saving money…

It's a little unfair to blame startups, they largely just set up shop where the capital is. Most VCs required startups to be headquartered near by for easier management/communication. The tech scene in SV had such exceptionalism that it quite literally viewed any startup not in SV as an inevitable failure. Even YC mandated startups be in SV.
Not sure why you are down voted. This is a requirement for many of the VCs in the valley. You have to be both US-based and “nearby”.
Most of the real estate "in the mountains" here in Colorado is basically SF prices, with a whole extra set of challenges. Even the front range I think has even worse home price to median income than a lot of the other places people think about when bitching about housing affordability.
I had also hoped WFH would solve that problem. For sure it alleviated it for the time it lasted - at least some people moved to more affordable locations. Unfortunately, for some reason many CEOs decided to take a step back.
> In big city America, the problem isn't lack of jobs, it's that it is hard to find a job which pays enough for you to afford the limited housing stock.

Maybe the more fundamental problem is that in big city America, it's easy for existing homeowners to band together to forbid any further housing stock from being built.

See Silicon Valley: amazing concentration of high-paying jobs, laughably low population density.