Salary or pay cut to move to Phoenix (Mesa, Chandler: sale, real estate market)

[DetroitN8V]

Originally Posted by Aesop.

Phoenix is affordable.

Congratulations, it is for me too. With bedrooms to boot! Still, homeownership is out of reach for many here.

[manhattangirl]

https://www.nerdwallet.com/cost-of-living-calculator

[MN-Born-n-Raised]

Originally Posted by Aesop.

Phoenix is affordable.

You are spot on and I just gave you some props. Reason: the answers are in the statistics. You live in Denver and you are right, it is a bit more expensive. In 2010, I was close to buying a home in Evergreen.

In the "most desirable communities" (defined by proximity to the jobs who are worker bees), desirable location and landscape, etc), PHX is factually "cheap" in comparison to other major areas around the country. As you accurately mentioned, much of the country is rising fast. Since you reside in Denver, let's look at the most expensive locations. In Boulder, the average cost per square foot is in zip code 80355 at $630 per square foot. https://www.zillow.com/boulder-co-80305/home-values/ All of the Denver burbs that are near the front range are >$400.

PV is the most spendy community in AZ. The average cost per square foot in Paradise Valley is $415.
See https://www.zillow.com/paradise-vall...3/home-values/ Arcadia ranks #2 at $268 https://www.realtor.com/local/Arcadia_Phoenix_AZ As I have said time more than a few times, in the hood of hoods (Compton's,CA) it's more expensive to live than Arcadia or Scottsdale. See https://www.zillow.com/compton-ca/home-values/

I don't have to live in Denver to know that a town like Aurora that is near the asinine airport location costs about the same (per square foot) that people pay in Scottsdale. How do I know? It's in the stats. See https://www.zillow.com/aurora-co/home-values/

Of course an average income cannot sustain a home in any of the most expensive locations around the country. But the averages are positively relevant. In this case, even when we stare at the outliers. The bottom line is anything along the Denver area front range (millions of people) are paying about the cost per square foot of the tiny town (14K people) of Paradise Valley. Those are the stats!

We both know that it's all relative. Denver is "cheap" when compared to Boston. We looked at renting a modest 2 BR apartment in Brookline, MA (Coolidge Corner). Our son goes to medical school in Boston and we love the area (walkability score of 98). It was a solid $2500 per month for a shoe box. Something nice was approaching $4K/ month. The average cost per square foot in Brookline $668. The average home prices have raised by $400K in Brookline since 2013. Yea, it's getting less affordable. Same with Denver, LA, Seattle, etc.

PHX is "cheap" in comparison. Cheaper labor. Cheaper taxes. A lot of words to say that the stats you are reading didn't let you down!

[Hal Roach]

232K is still less than half of DC Metro...and don't get me started on what kind of neighbors and schools you get there for 464K. My dad's frist job out of the USMC was teaching in South Florida...70 USD per week, but instead of sticking around a complaining for 30 years, he got a job in the computer business. Smart move. To this day he has no desire to follow many of their relatives and friends back to FLA, but he and my mom both used to frequently say Phoenix is like Miami..from the palm trees to the high season bad attitudes at restaurants and golf courses, to the endless number of low paying service jobs. Last I heard, out old hood in SW Miami was overrun by Venezuelans and our modest 3/1/1 was worth 375K...so I would say South Florida is less affordable than Phoenix, too. But both markets have lots of folks buying, who are selling elsewhere, and buying down. It is definitely tough for FTHB in all of the above, and many can thank inferior student loan mills for giving them no useful skills, and very fragile credit. We always started with a townhouse for affordability, but I have seen many, many wait and wait, and think there first home is going to be a SFR in a top school district...a) the schools still kind of suck b) every house has defects, and you are just one neighbor away from having real problems c) there are some deep pocketed investors ready to buy the same homes, without the mediocre credit and small down. Try not to be a sheep, and discover something new would be my advice, but I am not as smart as the rent cheerleaders that could have bought in 2012 for 30 cents on the Dollar, and did not....

[Zippyman]

Originally Posted by NOEL123

Hi guys-

We are thinking to relocate to Phoenix area, Gilbert is the exact location. Currently, we live in Philly. I would like some input and experiences in regards to salary or pay cut (percentage) that you received, doesn't matter where you from originally.

I really appreciate, if anyone would give us some insight. What were the factors that made you take the job offer, despite the pay cut?.

Thanks.

It’s been many years, I moved to Phoenix at the tail-end of the housing bubble (2006) - The move was a promotion & my pay doubled. Housing prices were higher than they are now, but rents were low. I was offered the same position in Sacramento or Phoenix at the same pay & picked Phoenix based of rents posted on Craigslist- at the time, I had no idea that a rental in queen creek or maricopa was undesirable.

Short answer, no way I would accept a penny less for working in Phoenix. Some things definitely are cheaper in Phoenix, others aren’t. Someone new to the area isn’t going to get the best deals on anything. I didn’t know that my car insurance should have been much cheaper in Phoenix & got nailed hard on that by just transferring my policy here (re-shop the rates!). Some have posted that food is cheaper in Phoenix, that wasn’t my experience- depends on what you prefer to eat & where you buy it. Some have posted “average” house prices & made statements about how impossible it is to find a nice or remodeled house under $xxxx, I sold several nice/ remodeled houses for less than that in Phoenix, but someone new to the area likely wouldn’t know where to look for bargains.

If your company needs butts in Phoenix, they can afford to pay philly wages for you. The expenses & hassles of moving cross-country will mitigate any “lower cost of living” you might experience. If you end up fat, rich and happy- that’ll be based on you being careful about your money, not because you’re being “overpaid”. FWIW, in my experience, employers in Phoenix have expressed a positive preference for an “east coast” work-ethic , so a couple percent in your base pay is justified. If your company needs to make cuts somewhere else to put a rock-star employee in Phoenix, then they can serve bologna at senior management junkets & meetings & put their money into a good investment vs. saving a nickel at your expense.

Good luck!

[KurtAZ]

^^This^^

Regardless of the affordability question. Never ever ever take a pay cut to relocate for a company.

[wannabeaTexan]

OP didn’t say their company was trying to relocate them, that I saw. Could be a very different motivation for wanting to relocate.

[KurtAZ]

Originally Posted by wannabeaTexan

OP didn’t say their company was trying to relocate them, that I saw. Could be a very different motivation for wanting to relocate.

Understood...but with the current business climate in Phoenix, with a 4.9% unemployment rate...there is no reason to take a pay cut. Granted, some markets warrant a COL adjustment (my company will pay a 15% increase to work in LA, San Francisco, NYC or Seattle) but I have never seen Philadelphia on any of those lists where the COL was so out of whack with the rest of the country that it required an adjustment. Sure you can take into account any non-monetary benefit and figure that into the overall decision but I would never sacrifice salary to move anywhere. If anything, if moving companies, they better be ready to pony up an additional 10+% if they want me, especially if I am moving my family across country. I mean...that is a $30k expense right there, all said and done, that you can't recoup.

[jnojr]

FWIW, we'll be relocating to the area (Chandler / Gilbert) within a couple of months or so. I've been talking to my boss about it, and we have some housekeeping to work out. A reduction in salary never came into the picture, even though there will be a direct increase in expenses (about half of my customer base is in San Diego, and I'll be flying back and forth at least weekly)

An employer that says, "Oh, I think your expenses are going down so I'm going to pay you less" is nothing but a giant headache. Will they readily agree to pay more if your expenses go up? "Oh, your wife got sick and will be generating health care costs? Here's another $5 an hour to help you out!" Uh-huh.

[Aesop.]

Originally Posted by DetroitN8V

Congratulations, it is for me too. With bedrooms to boot! Still, homeownership is out of reach for many here.

Most affordable large city in the country. The numbers prove it. I'm sorry the evidence doesn't align with your beliefs. Take care, guy. You'll be okay.