The great equalizer
Covid-19 is quickly becoming the great equalizer, where location or how deep your pockets no longer matter as much.
Soccer teams have to play behind closed doors, or at least with a fraction of the supporters in the stadium. Home team advantage is no longer a factor in the quiet stadium. The 12th player is absent from the stands and unable to sway the momentum. Also the revenue stream from ticket sales must be dwindling. While match-day revenue is smaller than broadcast or merchandise revenue, it still represents $150M annually if you are Manchester United or Barcelona. Or to put it in competitive terms, $150M in match-day revenue equals the cost of two Kevin De Bruynes. Of course, with season ticket holders, the revenue isn’t all gone. Manchester United is reporting $30M less match-day revenue in 2020.
Also the US university education system is going through a transformation. Universities are putting more and more of the lectures online and are figuring out how to serve students remotely. Why pay $50-$70K/year to be on campus at these elite universities, when you take the same classes online? Of course, taking classes over Zoom is not the same as being on campus. Taking the classes from your home is not the same as taking them in person. And then there are the evening social events and student parties. I am not advocating that we move to an all-remote university system. However, I can see how this can make education more available, and at a lower cost.
Lastly, this pandemic will have an effect on housing costs. We are getting more comfortable working remotely. More and more people are moving away from the expensive areas such as Silicon Valley. This will likely stagnate house prizes in the area or worse. More people will be able to join some of the big tech companies, while working from other locations. Some companies are creating satellite teams, bringing multiple team members together in a new location, others allow people to work from anywhere in the US. Regardless, proximity to the Bay Area will no longer be as big of a factor as it is today.