The Cities Where A Paycheck Stretches The Furthest? (San Jose, Sunnyvale: renting, mortgage)

[alikair]

this Forbes article says San Jose is #2 for highest income when adjusted for cost of living. I other words, if you at making average wages, living in San Jose would be cheaper place to live then most places.

Sometimes statistics can be dead wrong, is this the case?

The Cities Where A Paycheck Stretches The Furthest - Forbes

[Senno]

Well, I'd hate to live in San Jose on 30k. But if you make average wages I guess you're doing ok for metro areas COLA wise.

Only two expensive metro areas made our top 10 list. One is Silicon Valley (San Jose-Sunnyvale-Santa Clara), where the average annual wage last year of $92,556,

This forum was worried about a guy who wanted to move to Silicon Valley making 65k, with a general consensus that he shouldn't it seemed.

[alikair]

I find it hard to believe the average wage anywhere is as high as 92k

[jbunniii]

The article is kind of vague, apparently using the terms "household income" and "wages" interchangeably. I can believe that the median household income in SJ could be $92k, as that would include dual incomes in many households.

The article also seems to equate "median" and "average," but they aren't the same thing. A handful of very high incomes will skew the average upward, but they won't affect the median.

[ccm123]

I would say that 92K is the median or mean average household income, in San Jose.

[easybay]

This forum was worried about a guy who wanted to move to Silicon Valley making 65k, with a general consensus that he shouldn't it seemed.

So then, we were right - according to the article he should be making over $90K for it to be a $65K salary!!

Only two expensive metro areas made our top 10 list. One is Silicon Valley (San Jose-Sunnyvale-Santa Clara), where the average annual wage last year of $92,556, the highest in the nation, makes up for its high costs, which includes the worst housing affordability among the 51 metro areas we considered: housing prices are nearly 7 times the local median income. Adjusted for cost of living, that $92,556 paycheck is worth $61,581, placing the Valley second on our list.

[mysticaltyger]

Originally Posted by alikair

this Forbes article says San Jose is #2 for highest income when adjusted for cost of living. I other words, if you at making average wages, living in San Jose would be cheaper place to live then most places.

Sometimes statistics can be dead wrong, is this the case?

The Cities Where A Paycheck Stretches The Furthest - Forbes

What these articles may not tell you is how many 2 earner households there are. Prevailing wages are higher here, but household income is also probably higher because of more 2 earner households (I don't know that for sure, but I suspect it).

In general, you're probably doing ok if you're in tech, and the typical high paying professions. Outside of those, the higher wages usually don't make up for the higher cost of living.

[Radical347]

Originally Posted by Senno

This forum was worried about a guy who wanted to move to Silicon Valley making 65k, with a general consensus that he shouldn't it seemed.

Not a guy -- a family of 4 (with a dog).

[mstnghu2]

Originally Posted by alikair

I find it hard to believe the average wage anywhere is as high as 92k

Lots of people in the Bay Area make over $92k/year. Yes, lots of people don't too, but you'd be surprised at how many do. I don't have a college degree and was making over $100k up until about 3 years ago but have since taken a substantial pay cut at the company I work for. I also know plenty of people my age making as much. $92k really doesn't go very far here. $92k/year for a typical family of four and a mortgage payment would be living on a very tight budget. It would be great for somebody single and renting, although taxes would be a killer.

[alikair]

not sure how the social security system works.. still a few years away but. dont they look at your last years of employment when you retire? if so, maybe San Jose might be the best place to live IF! its true that the paycheck does go farther there. its hard to wrap my head around average wages almost a 100 grand. so whats a fast food guy make over there 50k