My biggest concern with Silicon Valley is that it will become so expensive that many potential startups are prevented from coming here. Sam also stated that housing costs were the biggest weakness.
I wonder what YC could do about this problem for it's companies. I think it would be interesting for YC to build a few high-rise live-work spaces for smaller YC companies to foster and grow the tightly-knit community. Maybe like a high-tech college campus?
True in much of Silicon Valley (especially places like Palo Alto, which want to retain a suburban layout), but there's some moderate densification going on in San Jose. It lulled for a bit during the financial crisis because a bunch of projects' financing fell through—some apartments under construction had work stopped for ~2 years. But construction seems to be back in swing again now.
Sam is right about "the wildly-out-of-control housing costs, which is probably the biggest weakness here right now". FYI, some Mountain View tech workers volunteer for an organization called MV Voters for Housing Diversity. See who we endorse for City Council at www.mvhousing.org, and vote tomorrow!
http://www.sos.ca.gov/elections/find-polling-place.htm
In Palo Alto, there's a similar organization called Palo Alto Forward, which I know some Palantir employees are involved with. www.paloaltoforward.com
I wonder what YC could do about this problem for it's companies. I think it would be interesting for YC to build a few high-rise live-work spaces for smaller YC companies to foster and grow the tightly-knit community. Maybe like a high-tech college campus?