October 04, 2004

Innovation: After the Gold Rush

Only Executives and Senior Engineers can afford to live in the "innovation hotbed"
The cost of living in the Valley is now so prohibitive that cash-strapped startups can't afford to hire many people here at the salaries they need. The median price of a single-family home has shot up 240% over the last nine years, to $640,000. The result: Only 21% of the people who live in Silicon Valley now earn the median income necessary to buy a house, down from 36% in 1995, according to Leslie Appleton-Young, chief economist at the California Association of Realtors. That's one reason why the Valley is expected to see just 1% to 2% growth in employment for the next several years, according to Economy.com.

and basic engineering (they need to explain that more) start offshore...