Is there any affordable real estate in the Bay Area anymore? According to the latest report from the California Association of Realtors (CAR), the answer is grim. Using its Q4 Housing Affordability Index, which studies the percentage of local residents that could afford a single-family home at median prices in California counties at the end of 2015, only 11% of households can afford San Francisco Bay Area houses. The news that S.F. is the most elusive of affordable housing in California is not really, news at all. But, the numbers have gotten even worse.
BAD NEWS: SAN FRANCISCO IS REALLY EXPENSIVE
According to CAR estimates, the minimum qualifying income to buy in San Francisco is $254,000 a year. The median household income, in San Francisco, according to the San Francisco Association of Realtors is a roughly $77,700. That is a pretty large income gap, especially considering the estimated qualifying income on average for the nation is $44,500. Seems that employees in the Bay Area need a cost of living raise, but we digress.
And it gets even worse. The combined state average of households that can afford a down payment is a meager 30 percent. Only four of the 28 surveyed California counties managed to hit the 50 percent mark and these are far outside the hustle and bustle of the Bay Area. In the running were: San Bernadino County (53 percent), Tulare County (54 percent), Merced County (55 percent) Kings County (61 percent). The national average is 58% so Kings County takes the prize for beating the national average. Then again, Kings County doesn’t exactly offer all of the amenities that the Bay Area does either. Also, it’s a rather daunting commute if you happen to work in an actual metropolitan city.
GOOD NEWS: SOLANO COUNTY IS AFFORDABLE
So is there any good news? In the Bay Area, Solano County is the only affordable place to shop for a home. With 45 percent of households able to feasibly manage a median down payment, it is a prime place to start home hunting. So if you’re in the market to buy, but a condo in the City just won’t do, Solano County may just be your ticket, Because we know, there are other expenses besides a mortgage, like food, for instance.
Give us a call at McGuire Capital Group Realty and one of our local, grass-fed, organic Realtors would be happy to help you settle in. We already knew Solano County had major perks a long time ago. We’ll help you find your perfect piece of affordable real estate in the Bay Area. To read the full article published in SF Curbed visit:-sf.curbed.com/…/11-percent-of-households-can-afford-san-francisco-homes.