Bill Coleman, CEO of Cassatt and SVLG board chairman, said he’s seen the cost of housing have a growing impact on businesses in his three decades in Silicon Valley. When he first arrived, the company he was building could afford to have all its employees locally. But over the years, Coleman said, it became increasingly difficult to pay mid-level employees the salaries they needed to afford the high cost of living in Silicon Valley. With his latest company, Coleman hired groups of engineers in Colorado Springs and Minneapolis, where housing costs are more reasonable. “You can hire really senior people that you can afford to pay big salaries,” Coleman said. “Or you can do the Google model and hire lots of people right out of college. But you can’t build a company long-term on either of those. You’ve got to be able to retain folks. And right now, housing costs are forcing those mid-tier employees out of Silicon Valley.”
Duh! This news is so 2001….