Slightly lower cost of living ($1.9k rent vs. $3.3k) doesn't make it a no brainer when the median Tampa dev will make $106k against the median SF Bay Area dev at $231k.
This is much more realistic to what software eng here can expect to make. And that COL index is laughable, when it's housing is 3.5x SF to Tampa. As median rents, 3.3k to 1.9k show, your actual net cost of housing is nothing like 3.5x. Buying a $1.5m SF home vs. $500k Tampa is as much an investment as it is just a housing cost. Remember, that if real estate appreciation/inflation equals your interest cost, you are effectively only paying 1.25% property taxes, equivalent maintenance, and negligible insurance.
>My numbers come from a far better source, with 1,475 data points
Not at all, levels.fyi is hilariously off, with many junk data points.
Let's settle this once and for all and go to the Bureau of Labor Statistics (which captures real compensation from tax returns, payroll, etc.) and see:
Tampa: $110k [0]
San Francisco: $181k [1]
>This is much more realistic to what software eng here can expect to make.
Not at all according to these facts.
>And that COL index is laughable, when it's housing is 3.5x SF to Tampa.
That COL index is sourced from COLI and is recognized by the U.S. Census Bureau and U.S. Bureau of Labor Statistics. [2]
>As median rents, 3.3k to 1.9k show, your actual net cost of housing is nothing like 3.5x.
Median rent means nothing when you can rent an entire 2500sqft house in Tampa for less than what it costs to rent a 1000sqft hell hole in SF. COLI factors that in which is exactly why the 3x factor stands.
>Buying a $1.5m SF home vs. $500k Tampa is as much an investment as it is just a housing cost...
Immaterial.
So back to the numbers:
$110k * 1.79 = $196k. You again come out ahead in Tampa, over $15k ahead.
We see folks compare to BLS data a lot, but it’s not an apples to apples comparison. BLS data doesn’t report total compensation, and especially for tech roles, that can leave out a significant chunk of compensation through (liquid) stock grants.
Nope, didn't forget it. The numbers I gave for disposable income are after taxes and median rent. So those have already been factored in and $111k vs. $59k is what you get.
Another way to put it is that in SF you make more money, after taxes and rent, than a dev in Tampa makes gross. $111k disposable income vs. $106k Tampa pre-tax
That's $111k disposable income vs. $59k. Double