Everyone knows that San Francisco is an expensive place to live. However, it’s often assumed that those expenses only apply to the middle and lower class. San Francisco tech workers which make up a large percentage of the bay area’s residents are assumed to be immune to the high costs of living. Think again.
According to hired.com’s annual “State of Salaries” report, San Francisco tech workers can claim the highest annual salary in the country ($142,000). This is a full $1,000 more than the global average.
San Francisco tech workers may want to hold off the celebration. In the same report, Hired adjusted salaries based on the relative cost of living in the bay area. The results tell a sordid tale of the true cost of living in the bay area.
Of the nine US cities surveyed, tech workers in the bay area came in dead last. Seattle, Los Angeles, New York, and Austin came out ahead.
Why Cost Of Living Matters
Austin, Texas ranked number 1 in adjusted salary at $202,000. The real average salary for tech workers in Austin sits at $118,000. However, when accounting for the high cost of living in San Francisco, a current tech worker in Austin would need an $84,000 raise just to maintain their standard of living if they were to move to San Francisco.
Hired also asked survey participants if they felt they were compensated fairly considering the cost of living in their city. 40% of respondents said no.
When asked where they would consider relocating to, Austin and Seattle were the top two choices. Both cities feature emerging tech markets that rival San Francisco’s. While not the cheapest cities to live in, Austin and Seattle may seem like a bargain compared to the bay area.
Seattle or Austin?
If you’re a San Francisco tech worker and one of these cities calls to you; which would you pick? Thanks to City vs City, comparing these two cities is a snap.
City vs City is a cost of living calculator that determines the true cost of living in a city. We examine after-tax income, housing expenses, state and local taxes, and more.
You’ll see a side by side look at these costs in vivid detail. Check out the video below for a match-up of Austin vs Seattle to see which city comes out on top!
Want more city match-ups? Check out our YouTube channel