The Lab Manager asks:
Off topic, but I would like to hear RW's view:There is a contradiction in the story. It also says:
Joint Venture Silicon Valley’s own study of the out-migration says workers are moving to Sacramento, Austin, and Portland due to a number of factors. But topping the list is the high cost of housing.If the cost of housing is high, and it is very high, there is no mass exodus. What is occurring is that second tier workers are leaving for areas where the standard of living is lower and SF is becoming an exclusive city for the very wealthy and the very high-income workers (and, of course, the homeless).
For the very rich in the area, money is no object. There is a very wealthy money manager in the area who outbids for the house cleaning services of a woman who is a talented professional and could earn good money in her profession but he pays her more to clean his house.
A second tier earner is just not going to compete against these kind of people. And with building restrictions so onerous there is not a lot of new housing on the market to push rents down for the second tier. The "exodus" is not about the collapse of the city but that it is becoming only a city for the rich (and the homeless)
According to Brookings, San Francisco’s top 5% of earners are blowing the rest of the country out of the water. The top 5% in San Francisco earn 17 times what the bottom 20% earn. The average for the top 5% in the 50 biggest US cities was 11.6 times what the bottom 20% earned.
This has been going on for awhile, San Francisco’s top earners made at least $423,000 in 2013. No city’s top earners come within even $100,000 of those in San Francisco.