June 14, 2006

High Housing Prices, a key to Silicon Valley's success…

I love reading Guy Kawasaki… so needless to say I was rather amused when I saw this particular quote in his piece on how to create a place that beats Silicon Valley:

\Signum sine tinnitu–by Guy Kawasaki: How to Kick Silicon Valley’s Butt
High housing prices. If houses are cheap, it means that young people can buy housing sooner and have kids. When they have kids, they can’t take as much risk and don’t have as much energy to start companies. (I have four kids—I barely have the time and energy to blog, much less start a company.) Also, if houses are cheap, it’s easier to “make it big,” and you want it to be hard to make it big.

It always amuses me when people say that the Bay Area is great for raising families. (It certainly ain’t the public schools!) Silicon Valley was based entirely around not having families. Look at successful firms like the early Apple, or the current Google.

Maybe I’m wrong. Do you think the Bay Area is great for families?

Click here to post a comment -- Posted by: burbed @ 5:00 am

No Responses to “High Housing Prices, a key to Silicon Valley's success…”

  1. marinite Says:

    What a load of crap. Silicon Valley’s greatest and most rapid success occurred when housing prices were far more affordable than today which is the exact opposite of what Kawasaki is claiming. Kawasaki is full of BS. If anything, the exorbitant cost of housing is forcing young families out as well as businesses. If things continue on as they are there then Silicon Valley will be composed primarily of transient 20-somethings getting job experience who then move somewhere else more affordable or retired geezers who bought in early.

  2. burbed Says:

    >If things continue on as they are there then Silicon Valley will be composed primarily of transient 20-somethings getting job experience who then move somewhere else more affordable or retired geezers who bought in early.

    But that’s fine too. Just look at the reports of age-discrimination in the Bay Area. The success of Tech depends on 20-somethings without families.

  3. sjunemployed Says:

    I know some one who has a MSEE and lives in the bay area,(her husband works in the tech industry).
    She has been unable to get a job after she took a break to start a family. She has been called to interviews, where people have asked her how she can put in the long hours required when she has a small child (Yes I know the question is illegal, but that’s beside the point).
    The Bay Area sucks for families.


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