Add to that the fact that most of the "new" people who would benefit from an increased housing supply are in multiple non-voting demographics (young, non-citizen immigrants of various visa statuses), and the old-timers hold all the political power. Why would they ever vote for anything that might decrease their property values? If you talk to them in person, they will occasionally grumble about traffic, or that they have to drive 1.5 hours to visit their grandchildren (because their children cannot afford to live in the area), but they will not actually do anything to change it. The reliably vote against universal mass transit in the valley, and against dense housing.
The only logical choice is not to play the game at all. Most large employers with satellite offices in other areas of the company do not give an appropriate salary penalty for living in a low-cost area of the company -- at least nothing that resembles the actual cost of living difference between silicon valley and other markets. So the best option is to work for a company where you can transfer to an satellite office in a low cost city (eg, Google Pittsburgh), or to just work for a company that allows telecommuting (which is what I did).
This has been the case forever though. Back in the 1980s, northern California jobs didn't compensate for higher cost of living even relative to fairly expensive east coast cities. And the cost of living in crappy apartments in Manhattan was a trope back then as well.
In 2000-2001, when people like Marc Andreessen were having trouble getting VC, investment banks and hedge funds were splurging on tech investment, even after all the Y2K money they had just spent.
One thing is hedge funds don't jump up and down saying look at our algorithms, look at our infrastructure. They tend to be very low key - I only know of one Youtube video with the currnt head of RenTech, which has $65 billion of assets under management, almost all of which is capital from the firm's 300 employees. They are no slouches, and have had some excellent computer scientists, mathematicians and scientists work for them.
New York does not have to persuade anyone it is a tech hub, especially relative to Austin, Denver, Portland and Seattle.
[1] http://www.computerweekly.com/news/4500248323/London-steams-...
If the housing is reasonably dense, there should be useful shops close by.
(In the UK, two friends of mine get an allowance from the state for their disabilities — one uses a wheelchair, the other is blind. It might be £56/week, I'm not sure, but it is paid even though they both have good jobs. Part of the purpose is so they can afford to live a little closer to a station, or in a larger apartment, or whatever.)
I absolutely loathe staircase elevators although in 2015 they proved more reliable than the standard elevators I had to use.
Either build more concentrated housing like Manhattan or make commuting from a longer distance more efficient. Perhaps a little of both.
Google has $60 billion in overseas cash. Negotiate a tax deal to build the Google Maglev from SF to San Jose, turning the 50 mile journey into a 20 minute commute.
But "Mag lev to Stockton" doesn't sound so sexy despite being a more rational idea.
Maybe Google instead ought to learn about remote work instead of blowing billions on a Mag Lev.
I think more likely alternatives are:
* build up if a high density coalition can be assembled (unlikely, but possible)
Or
* people stop moving to the bay area or leave when they are ready to settle down. Remote work becoming more acceptable may be part of this.
We face some of the same issues where I am (Boulder), but of course nothing near the intensity. We have huge chunks of uninhabited plains to our east that are being built out. If we have the water for it, and can handle the in commute traffic, we are good to go. (I realize those are big ifs!)
And to that point; you can sit in an office in another city or state which costs a fraction. You are not in silicon valley just because you need to sit together in your startup right?
Manhattan is not affordable either. Especially considering that getting kids in good schools is famously challenging.
I think higher-density zoning is an easier thing to do in real life, but if this were Sim City I'd concentrate on making more areas be somewhat independent, so we don't all feel the need to go to the same spot
What's actually needed is more remote working and a departure of the colocation mentality for businesses that don't actually need colocated employees.
Software engineers rarely ever need to be in an office. A hardware engineer almost certainly does. SaaS sales people: no need for an office. Customer support -- no office needed there either.
Even many lawyers don't need an office (by office, I mean a traditional office, not a home office.) I was a plaintiff in a lawsuit and never once did I even see my attorney face-to-face.. And it was complex litigation.. And we won.
Doctors obviously do, content marketers obviously do not. Accountants.. Definitely not.
My point is that the problem isn't housing, it's the density of tech companies that seem to think physical proximity to Sand Hill Road actually matters. The problem is also that Sand Hill Road also seems to think it matters. But it doesn't. Cases in point Basecamp and Github.
Commuting to an office only to use Slack as the primary day-to-day communication. THAT'S mind numbingly inefficient. Commuting to an office only to stand in a circle for standup and then going back to a desk to work all day.. That's inefficient. Marissa Mayer is wrong.
NYC manages to have cheaper housing than SF despite having radically more demand, thanks mostly to the ability to add supply at a reasonable rate.
NYC is actually quite affordable though. If you're willing to have a ~30 minute commute, you can easily live in some affordable places.
There are even more affordable options internationally though. Berlin, for example.
There's a new guy at the coworking space I work at who is self employed, and specifically moved from his home office to the coworking space, just to get himself out of the house and stop procrastinating.
I'm the same, I can't get anything done at home. Having a dedicated work space improves productivity a heap.
That being said, it's totally possible to have the staff spread through coworking spaces or serviced offices through different cities, working remotely.
Also, I spend a lot of time at work interacting with other developers, which is a lot easier and better to do in person. Pair programming is an exercise in frustration trying to do it remotely.
I could easily get a job in Silicon Valley right now but why would I?