> I would rather own equity in a high growth start up than 3 rental houses; at least from a growth perspective.
But that isn't the choice, the choice is between three rental houses and a maybe 1 in 20 chance of owning equity in a high growth startup that may or may not IPO in the next 15 years.
The third option in west coast cities is probably more common than your startup option : working for an established company, possibly a FAANG, and accumulating enough wealth to retire early.
It is the choice because the ecosystem is in SF. And because of the demand of people wanting to participate in the SF ecosystem, prices are higher. Itβs a gold rush dynamic. YCs are the new 49ers.
That's a false dichotomy. A startup engineer could easily afford three rental properties in most flyover states after 8 years of working from their salary alone.
But that isn't the choice, the choice is between three rental houses and a maybe 1 in 20 chance of owning equity in a high growth startup that may or may not IPO in the next 15 years.