If Silicon Valley Moved to New York
bhargreaves.com
bhargreaves.com
I wouldn't know any statistics but, in general, Silicon Valley is much more centered in the South Bay and than it is in San Francisco and those who work at Adobe, Sun, Apple, Oracle, etc. would normally live either on the Peninsula or in the San Jose area.
Just to take Apple as an example, in general, it is pretty crazy for the thousands of people who work in Cupertino (which is immediately adjacent to San Jose and is some 50 miles from most points in San Francisco) to live somewhere other than the South Bay or at least the Peninsula - from which locations the commutes would be pretty modest (still likely 20 minutes or more for most people but not the hour-plus it would be from the City).
Some people undoubtedly live in San Francisco while working at Apple simply because they like the City so much and prefer to live there in spite of the long commute. But these would likely be unusual exceptions and not the rule.
So sure, they're "commuting" — but really they just walk a couple of blocks, hop on board a free bus and start working during their commute.
Having recently moved from SV to NYC, I love how much more quickly I can get to startup offices and events. Even better, when I do travel, I do it by train. This means I don't need to pay for a car or car insurance, and it means that I can read my book while on the subway. In Silicon Valley, I couldn't afford a car and had to bike everywhere or be at the mercy of the Caltrain... a _very_ bad thing at 2:30am in San Francisco, I can tell you.
Also, Manhattan rent can be expensive (although the LES is not much worse than Palo Alto btw), but living in Harlem, Queens, Brooklyn, the Bronx, or even NJ and Connecticut is much cheaper and, as the map above shows, adds only minutes to your commute time.
Also, after working hard on a startup, sometimes it's nice to play hard too. Bars and clubs that close at 4am, and being able to get home by cab, can make that part of your lifestyle a lot easier.
I personally have spent a lot of time in NY (my gf lives there), but I definitely prefer SF (or anywhere in the bay area):
-NYC rents are pricier. SF is at least $300/month cheaper for a similar distance from downtown, which easily covers the price of a car (I'm one of those who really values the convenience one gives)
-SF has much better weather. I find NYC way too cold in the winter and way too hot in the summer
-SF wins on the outdoors - hiking and mountain biking are <15 minute drive away, but very hard to access in NYC (esp. without a car).
-NYC wins on mass transit, though often, I found it difficult to say, work on a laptop there due to overcrowding - BART/Caltrain typically have more seats available.
(Cycling sucks in the suburbs, anyway.)
1) Most VC's and tech companies are in the "suburbs"
2) Office + home rent much cheaper
3) A lot of potential employees (and easily most of those with kids) live in the valley.
Also, maybe some clean air and sunny weather can make for some good startup conditions (like sourdough bread :-)
It also matters what age you are. Those with kids tend to favor the suburbs over SF. Those without may favor SF. Personally, I work in Sunnyvale and hate a long commute more than anything else -- hence I am happily living there.
People who like space between them and their sociopathic neighbors?
I had a passive-aggressive downstairs neighbor who would never tell me if I was disturbing her; she went straight to the apartment office every time. When I tried to ask what was disturbing her, she wouldn't answer the door. For the life of me, I never figured out what she was complaining about. I played my guitar amp with headphones and never turned the TV beyond a reasonable volume, but nobody ever listens to the person who is accused of being loud, especially when the person complaining is a single mom with baby in tow. After suffering the tyranny of my downstairs neighbor and threats of fines or eviction for noise violations, I decided to move into a house in west San Jose.
I've lived in large cities and generally enjoyed the convenience, but that apartment was my last. Here, I don't need to wear headphones to play my guitar. I can actually use my stereo speakers when watching movies. When friends come over to play board games on a Saturday afternoon, I don't have to quiet them down when something exciting happens. I can barbecue in my back yard during the summer, and if I feel like hanging picture frames at 2:30 AM, nobody else cares.
The suburbs obviously aren't for everybody, but they work for me.
Glad to know I'm not the only one who wants to hang pictures at 2:30. I just do it, and if someone asks me to stop, I will. But nobody has ever asked.
Even when the banking industry collapsed rents did not go down significantly.
Also if you are bootstrapping, your salary isn't really tied to cost of living.
My friend's old studio was 1600, and was replaced by two college guys paying 1800.
Not that I'm happy about it, but it is what it is.
Additionally, it depends on how you track "rent" going down. Prior to the dip, the rents also required an agent's fee, which is easily a month or two's rent. I think more places nowadays are without these fees, so it is a little bit cheaper.
The whole infrastructure of CA still seems suburban, more driven by mindset and culture.
Comparing the convenience of the day-to-day things would be very interesting, but I'm not entirely sure how one would do this outside of just "cost analysis", which seems pretty shallow.
(Note: Boston, MA loses, though. Commuting from the 'burbs sucks.)
http://strangemaps.wordpress.com/2007/02/07/72-the-world-as-...