[quote=flu]Well, we will find out this afternoon. I don’t think the bulk of the cuts, if anything major will come from San Diego. I think the bulk of the cuts will come from Bay Area and elsewhere.
They bought like 3 wireless connectivity companies (Atheros, CSR, and I forget some one before Atheros). There’s probably more than one team competing against each other doing the exact same thing. kinda like we were when our company bought 3 LTE companies…. We know how that ended. 🙁
I don’t think this will drastically impact SD housing market per se, since it seems like the SD professional market is now pretty well diversified. Biotech seems to be doing very well at this moment.
A lot of the engineering households that are already able to afford north county (which itself is a problem…affordability), for example, tend to be dual income households to begin with, most likely both professionals (particularly the asian and indian households). So the difference is that a $300-400k/year household goes to about around $200k/year household. There’s probably going to be some people that relocate out (single income households, that also has the bad luck of not being able to find something else), but then there’s still these influx of other buyers (foreign and domestic) that aren’t even tied to Qualcomm or engineering for that matter.
It sucks for the people impacted, but life goes on for everyone else.[/quote]
Agree with this whole post expect for one minor caveat. That is, housing unaffordability problems exist ALL OVER the county, not just in North County. It is just as far of a commute to QC from many points in North Coastal and North Inland County as it is from “affluent areas” in East and South County (SD affluent areas such as LJ, PL, MH and CV are situated closer to QC), thus QC employee-homeowners have always been spread out across the county, especially the more senior ones who joined QC long ago, when commuting was easier.
This QC action speaks LOUDLY for having a dual-income household in SD …. MOST ESPECIALLY during the years one is attempting to raise minor children and give them a long-term, stable home.
Similar mass layoffs occurred in SD in the early nineties but they were mostly the fairly well-paying factory jobs of SEVERAL major local employers at one time, causing more widespread local layoffs. As I recall, these laid-off employees’ homes that flooded the market were listed by sellers who either retired in lieu of layoff and decided to relocate or by sellers who could no longer sustain themselves in the area after layoff (single-income households with minor children). The second type of seller is particularly (financially) vulnerable to layoffs … almost immediately to the point of relocation being a necessity for them. Yes, many single-family listings flooded the market at that time (I believe the worst year was in ’94) and I recall most of them were located in Clairemont, Allied Gardens, Linda Vista and all points south within SD and South County (Rohr Industries and Vulcan Rubber in South County were among the closing plants during this era).
Correction: the Vulcan Plant has apparently moved to Otay Mesa and is still in (limited) operation … my bad. I was referring to the power plant located on the bottom of SD’s bayfront, which employed several hundred local workers, including boilermakers making $27 – $37 hr. After closing over 20 years ago, it was finally demolished in 2013 with much aplomb:
