Ask HN: Why no dorm-style living for ppl in incubators in Bay Area?

[gtbcb]

Finding a reasonably priced place to live in the SF Bay Area (SF city or peninsula) is a damn nightmare. I haven't spent more than 20 min crunching the numbers, but I'm surprised some rich dude hasn't built some dorm-style housing specifically for entrepreneurs or people accepted to Bay Area incubators. When I say dorm-style I mean cheap, close quarters (for collaboration), potentially cafeteria style food (think fraternity house), with some sort of filter for acceptance (e.g. accepted to a recognized incubator, raised a seed round of >$Xk). Thoughts?

[mchannon]

"Some rich dude" probably is aware of many far more deserving recipients of his charity than a group of fresh-off-the-bus entrepreneurs who can't figure out how to live in Silicon Valley.

Now, if, say, "some rich dude" was to ask for equity in lieu of rent, then that could be potentially quite savvy (and lucrative). The downside from that approach is that you have to deal with all the usual landlord/tenant headaches, and added on to that, what to do if a longtime tenant decides to pick up a day job and stay at that day job.

One would also wonder if the cream of the crop in terms of entrepreneurs would even part with 0.1% of their equity in order to receive subsidized housing versus finding another way to make it happen. Would Zuck have taken this offer in 2004?

The way for this to happen (maybe) successfully would be for some non-local government (some city or state in middle America, or abroad) to purchase the property to house startup entrepreneurs with the understanding that 6-18 months in they relocate their operations back to the motherland. This should be enough time to get (or not get) initial funding, network, and traction opportunities that the valley offers and their town does not.

[impendia]

Because housing and zoning codes are controlled by city governments which are in turn controlled by owners of million dollar houses. It is against their economic interests, and also they are extremely sensitive to issues such as traffic, parking, and the like.

Reading the real estate ads in Palo Alto newspapers, it's extremely obvious that if developers could build to density where it made economic sense to, the housing bubble would disappear immediately. But it's a huge pain to get even the smallest project approved, and deliberately so.

I don't think it's right, but that's how it is.

[_delirium → impendia]

That's definitely true in Palo Alto, Atherton, etc., but San Jose has been pretty open to denser redevelopment, especially around downtown and Diridon Station.

[gtbcb → impendia]

I agree, and this makes sense; however, I would think that creating cheaper living for the right kind of people (e.g. aspiring entrepreneurs) would be something that even the owners of these million dollar houses would be open to given that Palo Alto is the hub of entrepreneurial activity on the peninsula and seems to be something that the community takes pride in.

[argonaut → gtbcb]

No. You average (or at least the plurality demographic) million-dollar-house owner in Palo Alto is a middle-to-late-aged married couple that probably does not care about entrepreneurship.

[gatsby]

This idea is really interesting and I've spent some time thinking about it as well. There are obviously some substantial regulatory and financial barriers to creating collaborative, dorm-style live/work spaces, but it seems like there is definitely a need for more affordable housing solutions in the valley.

gtbcb and anyone ese interested in real estate - shoot me an email (it's in my profile). I'd love to chat further.

[gtbcb]

I feel like anti-discrimination laws could be circumvented on the same grounds that non-Stanford students can't live in Stanford dorms. As for renting out expensive real estate cheaply, I don't think this would be the case as the real cost is the property not the building, so building a higher density building theoretically allow enough money to be made because of more rents (albeit at less rent per unit). Also, I'm thinking of a more dorm-esque living space with small rooms and shared spaces.

[dragonbonheur]

I'm surprised no one is making a killing converting Silicon Valley and Bay Area houses into capsule hotels like the Japanese.

[gtbcb → dragonbonheur]

I've wondered about this for a while, and would love to hear additional input. My guess in that the Bay area proactively does things to limit population density (particularly a place like Palo Alto where I live) and traffic.

[dragonbonheur → gtbcb]

Whoever wrote or enforces the laws should be reminded there's a recession happening.

[david927]

I'm surprised too; I think that would do very well.

[cjfarivar]

Live in Oakland, dude. :)

[gtbcb → cjfarivar]

The action is in the city / peninsula ;0) Also, I feel like something like this would further the collaborative entrepreneurial community in the Bay area, particularly the peninsula where there aren't many place to congregate / collaborate (with the exception of the Hacker Dojo). Plus making finding a decent place easier.