Fri May 29 19:26:18 PDT 2009
We spent a lot of time worrying about how much more it was going to cost to live in Silicon Valley compared to NorthWest Arkansas. This post is completely non-scientific. It's simply my impressions of the different areas of cost differential between these two regions. And I'll mention traffic too.
The purchase price of real estate in the bay area is FAR HIGHER than in NWA. This single element is what pushes the cost of living delta so much higher. If memory serves, when we were looking to move out here last year, the overall delta was 2.4. That is, to keep the same standard of living in the bay area as you had in NWA, you had to spend 2.4 times more.
However, rental prices aren't a great deal higher here, from a certain perspective. Comparing rental prices of 'normal' areas in the bay area to 'downtown' areas in NWA, I have found them to be about the same. However, in NWA, prices VERY quickly go down as you leave 'downtown'. Around here, it's not that simple, but overall, you have to be a LONG ways out to get much cheaper prices.
I'm not sure about the utilities. We're only paying electricity and internet for the place we're renting; everything else is included. Internet is more expensive than I thought it was going to be; we're paying 45 bucks for 6 megs down. We haven't gotten an electric bill yet, but it should be pretty low since we're only running the air from time to time. It's rarely really warm here.
Consumables is a tricky comparison. In NWA, you go to your closest Wal-Mart and get just about anything you need. And get a hair cut. And see a doctor. And do banking. And get a burger. And you were pretty sure to get the best prices for anything you bought. Here in the bay area, things are more complex. There are a few Wal-Marts, but the only supercenter is out in Gilroy, which is a good 45 minute drive from the main part of town. So we've learned to shop around. The results are mixed. Many things are cheaper here, like fruits and vegetables and meat. Many things are about the same, and some things are quite a bit more expensive. If you play the game and join the clubs at the local markets, the prices aren't too bad. As long as you shop around.
It is costly to eat out here. Low end fast food is probably 10 percent more expensive here, but as soon as you get beyond that, it's expensive. A fair sit down meal is going to start at 15 bucks. Low-end Chinese take out starts at 10 to 12.
Of course conveyances are about the same price, and gas is 25-35 cents higher. But excellent public transportation and VERY well integrated bike lanes offset that.
How about sales taxes? I was quite surprised. Sales taxes run from 8 to 9 percent. In NWA, they run from 9 to 10 percent. People I have spoken to who have lived here a long time were stunned to hear how high the taxes were in the midwest. At least my little experience with the area.
The traffic around here is interesting. The side-streets get heavy, but they don't get utterly clogged the way they do in NWA. I think this is because of superior planning, more streets and many more lanes. A 'normal' street will be five lanes, and a large one will be between 7 and 8 lanes. I don't think there are ANY roads in NWA that have more than 5 lanes. Also note that virtually all of the roads here also have well marked and well defended bike lanes on both sides, making them look even larger. There are very clear times when traffic gets heavier than others. But most of the time, outside of rush hours, it's quite easy to get around, quickly.
These are my very personal and un-scientific perceptions, which means they are going to be mostly wrong. I gladly encourage my NWA readers (I know who you are!) to correct and expand on these perceptions.
The net result for us? We're not spending nearly as much money here as we thought we were going to. And that's some great and surprising news.
Comments:
Sun May 31 18:48:34 2009
Comment from mw
I was paying $385 for a 2br apt on trinity ave in walnut creek. It was 2-3 blocks over from the bart station.That was a bargain with what I saw when shopping for a place to live. I was thinking the going rate was 500-600 for something in an area that was decent to live in. I couldn't find something I could afford in the city with a parking place. Loved lombard street and Coit tower but $$$$$$. I believe the commute into the city was about an hour m-f. I recall seeing the 6 lanes of traffic going into the city bumper to bumper on the east bay side. Parking was expensive, traffic was awful so BART was a good mode of transport. I want to say it cost $1.15 each way but it's been a long time. Traffic wasn't bad on the weekend if you drove into the city.... What I recall was how beautiful it was at night in the berkley hills(or maybe it was the oakland hills, it was before the calicot tunnel) looking down into oakland and San Francisco.You could see the fog coming in. Recommend seeing this, and btw, get a picture. Gas was higher there. I can't judge what utilities were since I only had a color tv and stereo. The apt had a window air conditioner in the wall for cooling and a space heater the wall for heating. I didn't really use them. The pipes were exposed above the parking where the cars pulled in (under the apartments). I thought it was odd having pipes exposed(being from the midwest) but it didn't get cold there. I thought the mall (Sun Valley, concord??) shut down at 6:00 on saturday evening which I thought it was odd, but they opened on sunday which was illegal in MO back then so maybe the reason they closed early on Saturday. I could see Mount Diablo from walnut creek. I thought it was odd that called it Mount, as in mountain... I thought it was just a big hill after driving thru the rockies to get there. I got there after the rainy season so the hills were brown, not green. Safeway was the grocery chain I remember but there was a membership place (GEMCO??) you could shop for groceries and merchandise. the groceries were on one side of the building seperate from the other side... On the housing issue I remember talking with couples where they both worked so they could afford a $400,000 house and commute 2 hours (one way) to work. Housing was outrageous back then. I'm not sure it's any better now. The norm was also for 2 people to share an apartment and split the cost so I consider myself very lucky to have found what I found in an apt so cheap. I also had a non cali emisions car, lucked out in that they passed it for emissions when I got there but said they couldn't pass it the next time... As far as today, I would expect electricity to be very expensive since they seem to have to import it and won't build power plants in the state. I'd think water is also going to be a expensive item since they also seem to be fighting with farmers and other states for water rights. I would agree that they do a better job with traffic and roads but then again, who isn't doing it better than NWA.