Where you can afford a home in the Bay Area based on your salary


  • 8a66e 920x920 Where you can afford a home in the Bay Area based on your salary

    In Oakland, the current sold median price is $825K and the minimum salary needed to buy a median price home is $154,251. To buy the $825k 4-bed, 2.25-bath home pictured, buyers need 244% 2017′s reported median income.

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    In Oakland, the current sold median price is $825K and the minimum salary needed to buy a median price home is $154,251. To buy the $825k 4-bed, 2.25-bath home pictured, buyers need 244% 2017′s reported median

    … more


    Photo: Data: Redfin; Home Photos: MLS Via Redfin

  •  Where you can afford a home in the Bay Area based on your salary

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In Oakland, the current sold median price is $825K and the minimum salary needed to buy a median price home is $154,251. To buy the $825k 4-bed, 2.25-bath home pictured, buyers need 244% 2017′s reported median income.

less

In Oakland, the current sold median price is $825K and the minimum salary needed to buy a median price home is $154,251. To buy the $825k 4-bed, 2.25-bath home pictured, buyers need 244% 2017′s reported median

… more



Photo: Data: Redfin; Home Photos: MLS Via Redfin


A booming job market and increased demand for housing have made living in the San Francisco Bay Area shockingly expensive, and most residents have salaries that don’t cover the cost of buying a home.

An August 2019 report from the California Association of Realtors revealed that while affordability improved in all nine counties in 2019, the picture is still grim.

San Francisco County remains the least affordable, with only 17 percent of households having the minimum qualifying salary of $343,420 to buy a $1.7 million median-priced home.

Solano County is most affordable, with 46 percent of households bringing in $89,900, the salary required to buy a $445,000 median-priced home.

Conventional wisdom tells us that a healthy budget allots no more than 30 percent for housing expenses. But if this is true, most Bay Area real estate creates a very unhealthy ratio of income to expense.


While San Francisco was least affordable among the counties,  a recent Redfin study shows that it doesn’t lead the list of cities. Using data from Redfin, we did some extra number crunching to determine the salary required to buy homes in several other metros. We used the idea that buyers would obtain conventional mortgages, putting down 20 percent the asking price of a home, and accounted for taxes and insurance in calculating the resulting monthly payments.

The median sales price in Palo Alto as of July 2019 was $2.9 million. The salary needed to spend less than 30 percent of your income on a median-priced home is $542,216 a year. This makes a home in the Silicon Valley City unaffordable to the city’s average resident earning $147,537 a year. (Find the breakdown on more cities in the gallery above.)

The gallery above breaks the numbers down in cities all over the Bay. We’ve also included typical homes the median price buys.

Even if we agree that the median price and median income don’t paint the full picture of a city’s affordability, they certainly paint a general one– and in this case, a rather disturbing one.

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert.

Article source: https://www.sfgate.com/realestate/article/You-may-need-three-times-your-salary-to-afford-14340645.php

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