I live in San Francisco (used to work in Silicon Valley) but invest in real estate in Austin Tx full time. I can points out some statistical difference between SF Bay Area Vs. Austin Tx.
Summary: If you plan to strike it rich in tech OR can afford to enjoy one of the best weather/amenity, come to Silicon Valley. But, if you rather enjoy slower pace of life with family, Austin is the place to be.
METRO POPULATION 2009
Austin: 1,705,075 (Ranked 35th)
Total SF Bay: 6,157,553 (Ranked 5th as combined)
San Jose-Sunnyvale 1,839,700Wikipedia: http://model-ist.cgsociet
METRO POPULATION 2025
Austin: 2,735,687 (Ranks 25th - 60% increase from 2009)
SF Bay: 7,080,373 (Ranks 7th - 15% increase)
San Jose-Sunnyvale: 2,178,385Business Journal: http://www.thaindian.com/
2007-2009 POPULATION GROWTH (Adults with college degree)
Austin has attracted most adults with college degree in this period by attracting middle class folks from high cost metros.
SF has somehow turned around negative migration trend after 2007.
Brooking Institute: http://www.brookings.edu/
2009 GMP (Gross Metropolitan Products)
Austin: $82B (Ranked 35th)
SF Bay: $449B (Ranked 4th)
San Jose-Sunnyvale CA: $143B
US Mayor: http://www.usmayors.org/m
PER CAPITA GMP 2009
SF Bay: $72,918
- Silicon Valley(San Jose metro) has the highest tech employees ratio and salary with $132K. As for # of workers, total Bay Area tech population of 393K is the largest in USA.- Austin's tech concentration is quite high at 11% but no way closer to that of Silicon Valley. Total tech population is 65K (Vs SF bay's 393K). Salary is also moderately high at $93K.
TechAmerica Foundation: http://bit.ly/fMvH3g
VENTURE CAPITAL FUNDING
When it comes to VC funding, no metro come close to Silicon Valley. In 2010, Silicon Vally is forecast to attract $8.5 billion in VC funding (approx. 40% of total US VC funding), while Texas (including Dallas, Houston and Austin) attract $995 million (or 4.62% share).
National Venture Capital Association Q3 2010 Statistics http://bit.ly/
EDUCATIONAL ATTAINMENT/HH INCOME/INCOME HOUSING RATIO
- Silicon Valley (San Jose metro) is one the highest educational attainment in USA --- therefore median household income (at $87K) is one of the highest. However, due to rack of land, housing price for middle class family is most expensive (at $739K) and Income Vs. Housing Ratio is out of controll (at 8.52).
- While Austin's educational attainment is second tier, it is ranked 7th in large metro in US. Median household income of $57K is not that high (remember -- Austin's household is skewed to those in 20's), since housing is affordable (at $176K), Income Vs. Housing Ratio is 3.03, the lowest among brainy metros.
COST OF LIVING
There are so many cost of living index but I find the ACCRA Cost of Living Index (COLI) quite accurate. http://bit.ly/g
The ACCRA Cost of Living Index measures regional differences in the cost of consumer goods and services, excluding taxes and non-consumer expenditures, for professional and managerial households in the top income quintile. It is based on more than 90,000 prices covering 60 different items for which prices
are collected quarterly by chambers of commerce, economic development organizations, and university applied economic centers in each participating urban area. Small differences should not be interpreted as showing a measurable difference.
The composite index is based on six component categories – housing, utilities, grocery items, transportation, health care and miscellaneous goods and services.
SF Bay Area is super expensive (162 in SF and 152 in SJ) while Austin is at around 95.
Ranking Urban Areas Index Ranking Urban Areas Index
1 New York (Manhattan) NY 207.9
2 New York (Brooklyn) NY 181.3
3 Honolulu HI 167.8
4 San Francisco CA 162.0
5 New York (Queens) NY 158.5
6 San Jose CA 152.4
7 Truckee-Nevada County CA 147.4
8 Orange County CA 145.7
9 Oakland CA 144.0
10 Nassau County NY 144.
* US average is 100.
* if you look into detail of COLI http://bit.ly/fZ3XQB
Remember, on top of it, if you make $100K+, you are charged approx. 10% on California state tax and, because of progressive tax system, you end up paying more if you get salary rise.....
QUALITY OF LIFE (No consideration on cost of living)
Here is yet another interesting study on Quality of Living Ranking by Metropolitan Area by David Albouy, University of Michigan Economics professor.
ARE BIG CITIES REALLY BAD PLACES TO LIVE? IMPROVING QUALITY-OF-LIFE ESTIMATES ACROSS CITIES
Here is the ranking among top 46 metros. SF Bay Area (and Coastal California metros) by far brings the best quality of life. Austin is not bad at 17th (out of 46) but is far distant from that of SF Bay Area.
1. San Francisco--Oakland--San Jose, CA CMSA
2. San Diego, CA MSA
3. Los Angeles--Riverside--Orang
5. Miami--Fort Lauderdale, FL CMSA
12 Austin--San Marcos, TX MSA
42 Cincinnati--Hamilton, OH--KY--IN CMSA
43 Memphis, TN--AR--MS MSA
44 Grand Rapids--Muskegon--Holland
45 Buffalo--Niagara Falls, NY g , MSA
Methodology of this study is as follows:
- Heating-Degree Days
- Cooling-Degree Days
- Sunshine, fraction possible
- Proximity to Coast, salt or fresh water
- Violent Crimes per Capita
- Median Air Quality Index
- Restaurants and Bars per Thousand
- Places Rated Arts & Culture Index
- Residential Land Use Regulatory Index
- Sprawl Index
- Local Expenditures net of Local Taxes
- Federal Spending Differential
Based on Camelot Climate Index: http://ggweather.com/came