> The problem is that in much of the anglosphere, housing is so scarce that you have to ignore such rules of thumb, or live in the middle of nowhere.
This is a bit circular, supply-and-demand-wise. Especially in the US - why is demand in some areas so high that people will bid houses in San Jose up to 2M+? Why aren't they buying the same thing for 450k in Dallas?
Why aren't the companies based in those crazy expensive areas and paying million-plus total comp to large sections of their workforce being eaten alive by ones with lower labor costs in other regions?
Housing is scarce in the areas that are already the most densely populated, which itself is a bit of yogi-berra moment.
Too much discussion about housing in the US focuses only on the supply side and ignores the geographic concentration of demand that has happened over the last few decades. Is that centralization good for the country in the long-run regardless? Obviously that centralization goes back way longer in many European countries, so was the distribution and the number of growing populaces in cheap, not-yet-established areas part of the secret sauce for the 20th century US? Could you start the companies that made the Bay Area what it is today in today's Bay Area? Could you even start them in somewhere cheaper today, or would you not be able to get the talent to join you there? We're five years into remote work being way more common than it ever was before, and it hasn't broken that stranglehold of concentration yet.
>We're five years into remote work being way more common than it ever was before, and it hasn't broken that stranglehold of concentration yet.
That's partially because big companies decided WFH was now verboten. Part of it was because execs in that area didn't want their personal property values to go down, I suspect. I'm sure there was also governmental pressure as well to protect the auxiliary businesses like local restaurants, protect tax revenue like property tax state income tax, etc.
This is a bit circular, supply-and-demand-wise. Especially in the US - why is demand in some areas so high that people will bid houses in San Jose up to 2M+? Why aren't they buying the same thing for 450k in Dallas?
Why aren't the companies based in those crazy expensive areas and paying million-plus total comp to large sections of their workforce being eaten alive by ones with lower labor costs in other regions?
Housing is scarce in the areas that are already the most densely populated, which itself is a bit of yogi-berra moment.
Too much discussion about housing in the US focuses only on the supply side and ignores the geographic concentration of demand that has happened over the last few decades. Is that centralization good for the country in the long-run regardless? Obviously that centralization goes back way longer in many European countries, so was the distribution and the number of growing populaces in cheap, not-yet-established areas part of the secret sauce for the 20th century US? Could you start the companies that made the Bay Area what it is today in today's Bay Area? Could you even start them in somewhere cheaper today, or would you not be able to get the talent to join you there? We're five years into remote work being way more common than it ever was before, and it hasn't broken that stranglehold of concentration yet.