Comments on: Canada Offsets Expensive Real Estate With Low Paid, But High-Quality Tech Labor

By: Oops

Oops — Mon, 19 Apr 2021 21:57:11 +0000

In SF you have to deal with the bulk of the windfall from IPO or buy-out cashouts of the decade (of which there are multiple billions worth). So its just not just the relatively well-paid engineers bidding for homes. In some sense this is isn’t fair compared to toronto, which has significantly less of this kind of wealth.

I wouldn’t doubt SF being more expensive but they have justification for it — large tech monopolies, rich VCs. Toronto being in the same dimension is just odd. That’s what makes toronto so weird, the low pay with ridiculous housing inflation. Even if you look at which countries experienced the greatest housing inflation since the crisis, we are near or at the top depending on how you look at it. This is not organically driven a la Silicon Valley.

By: James Ling

James Ling — Mon, 19 Apr 2021 01:48:54 +0000

In reply to Baio. You posted that without using net? You do realize that using adjusted tax brackets for income, sales, and property that the SF multiple is *higher* than Toronto right?

By: Ashley

Ashley — Sun, 18 Apr 2021 01:59:18 +0000

In reply to Ian Brown. They all do have presence but very small footprint, e.g. MS has ~2000 employees in Canada with ~1200 dev jobs which is 1% of MS employee base. They do need presence for client proximity and support. Salaries paid in Canada are also lower than those paid for same position in US for a metro city. Canada tends to claim attracting high skilled talent but for some reason fails to attract business investment.

By: Baio

Baio — Sat, 17 Apr 2021 20:35:29 +0000

In reply to James Ling.

Toronto average engineering wage: $90k
Toronto average home price: $1,097,565

Multiple: 12.19x

SF average engineering wage: $160k
San Francisco $1.42 million

Multiple: 8.87x

https://www.sfchronicle.com/local/article/Mapped-Real-estate-prices-soared-in-the-Bay-Area-16091650.php

By: Ian Brown

Ian Brown — Sat, 17 Apr 2021 20:26:45 +0000

In reply to Ashley. They do have research and dev shops in Toronto, Vancouver, and Waterloo. Amazon Alexa's team is partially in Canada.

By: Ian Brown

Ian Brown — Sat, 17 Apr 2021 20:25:33 +0000

In reply to Holton. US home prices fell until 2012, so you gave your own example.

By: Holton

Holton — Sat, 17 Apr 2021 18:59:29 +0000

Guys, can anyone give me one example of where they printed tons of money and real estate prices went down after?

2008 was a real estate crash then printed a lot of money.

Money printing always lead to higher prices.

By: straw walker

straw walker — Sat, 17 Apr 2021 16:28:49 +0000

Low wages are directly attributed to mass immigration.
High house prices and high density living are both directly attributed to mass immigration.

By: Erik

Erik — Sat, 17 Apr 2021 16:25:40 +0000

Money laundering…. Speculation…. Foreign buyers… Accidental millionaires using HELOC loans…. Govt collusion…. Pretty much end of story

By: Canaduh

Canaduh — Sat, 17 Apr 2021 04:03:17 +0000

In reply to D.D Levitwitz. Anecdotally this is absolutely true. Very few peers intend to stay here long term. Many have been moving on a year over year basis to FAANGMULA companies in the US or overseas where the cost of living is much lower. The ones that are staying are doing so for networking only and to build up as much career capital as they can only to make the switch. This includes peers in analyst to senior director roles in reputable organizations. Your mileage may vary.