Help, moving + trying to figure out average income in Silicon Valley (San Jose: sales, rental)

[mikejj2004]

OK, I live in Austin, TX and thinking of moving to silicon valley area. I see on salary.com and payscale.com that compare salaries for the same job and it says there only 20-25% higher there, on average depending on job. Yet, when I check the Santa Clara county info page on city-data it says avg wage per job: $64,000, this is $41,000 where I live. I check a newer 2006 gov source that measures the incomes of MSAs and it says the San JOse metro avg job income is $71,000 vs $43,000 here so around the same, this is some 65% difference, nearly twice the difference as same job salaries im being shown. So my question is why is this? Is it just that simply there are more companies there and the quantity of high paying jobs is much larger hence the average income is higher? Or is salary.com and payscale.com inaccurate? 20% higher would be a total rip since houses cost 4 times more there, and you dont have a walmart supercenter selling cheap food and cheap gas either.

[MontereyLocal]

One of my co-workers just did the opposite move, Sunnyvale, CA to Austin, TX.

Unless there was a major financial motivation already in place, I would recommend against moving from Austin. To have a "comfortable" living in San Jose, you would probably need to make $80+ as a single person. For example, compare your cost of gas, say Chevron Premium (91/92 grade) to $3.69 (cost near my parents house in San Jose). Sales and use tax is the same (8.25%) in both locations, but California has around a 9% State Income Tax (no state income tax in Texas.) The weather is better in the Bay Area, especially during the hot summer months, but I don't think that alone would cause me to move.

Based on the above salary numbers, housing would be rental only; purchasing one with a standard 30-year fixed loan would typically require a salary north of $150k a year. Also don't forget you'd be giving up South-by-Southwest .

[SicilianPolka]

I make over 120K and it's tough in the Silicon Valley. Homes are avg 700K, with insurance and taxes always increasing. Gas is more expensive and so is car insurance. Everyone tries keeping up the the Jones with all the whistles and bells, dog and pony shows and they just get deep and deeper in debt. My nursing friends work two jobs and their husband work, baby sitting is done by grandma or sibilings-but what kind of family time is there? None. I moved to Idaho and can't wait to retire.

[Luke9686]

I agree with all the above. The only reason I would say to come here is if you are working in the Tech field. Come here for 3-5 years to get the "Silicon Valley" experience on the resume. But unless you have a sweet job lined up, I would not do it.

[Luke9686]

Originally Posted by Dominic Godfrey

On the other side of the coin, if you can afford to buy a home here (any home), then you're very likely to build substantial equity through appreciation at a very much higher rate than anywhere else in the country. Our home prices have gone up around 65% over the last years, and that's not unusual. I am a realtor in the south bay, and could Moderator cut: realtor advertising/soliciting not allowed

Don't take the following statement as ANY disrespect, but I think this is part of what is wrong with this area. They come here and buy simply for appreciation. At some point people will stop paying so much for a 3 bedroom POS. Although it has worked in the past, and is in fact working still, it may not work years down the road. And also, I don't think if you bought ANY property, such as a house in the ghetto, it would appreciate much. Reason being is during a slowdown, the entry level homes are the first to sit on the market for a long time, and lose value, because these people are the most affected by things like hikes in interest rates, gas prices, etc...

Just be carefull and good luck!

[phantompilot]

Originally Posted by mikejj2004

OK, I live in Austin, TX and thinking of moving to silicon valley area. I see on salary.com and payscale.com that compare salaries for the same job and it says there only 20-25% higher there, on average depending on job. Yet, when I check the Santa Clara county info page on city-data it says avg wage per job: $64,000, this is $41,000 where I live. I check a newer 2006 gov source that measures the incomes of MSAs and it says the San JOse metro avg job income is $71,000 vs $43,000 here so around the same, this is some 65% difference, nearly twice the difference as same job salaries im being shown. So my question is why is this? Is it just that simply there are more companies there and the quantity of high paying jobs is much larger hence the average income is higher? Or is salary.com and payscale.com inaccurate? 20% higher would be a total rip since houses cost 4 times more there, and you dont have a walmart supercenter selling cheap food and cheap gas either.

Bingo, you figured out its a rip off. Californians have some of the lowest disposable income in the nation even though wages are some of the highest. Dont come here expecting to be better off, because more than likely you wont be.

[jnghiem]

I would not suggest you come here unless you had a firm job offer in hand and even then really consider how much they're offering you! There is a reason the pay is much higher. The cost of housing is triple than that of Austin. Homes in the Austin area go for $300k (around 2800 sq. ft). While for the same sq. ft here in the Bay Area, your looking in the million range (good schools, closer to work). You could pay less but you'll probably spend more time in your car driving to and from than actually enjoying your home.

Good luck though.

[AA702]

I grew up in Sunnyvale, loved the area and weather. Had a lot of friends and family. In the 80s and 90s jobs were easy to get and paid well. Rents and home prices were affordable. But when the .com boom came it just changed the whole area. Family and friends started to move out of the area one by one so I really didn't have a reason to stick around. I moved out to look for more affordable cities to live and start over. The only thing I miss is the weather. But San Jose is a nice city to live in over all if you can afford to live comfortable there.