A new study redefines the term “unaffordable” in a housing market already out-of-reach for so many.
Housing research firm Trulia looked at all the ZIP codes in the top 50 metro areas in the U.S. and found San Francisco and San Jose top the list for most neighborhoods with zero affordable homes.
This study found roughly one-in-four neighborhoods in San Francisco, and one-in-five in San Jose don’t have a single home that would be considered affordable for the median household income.
In San Francisco’s stoney Sea Cliff neighborhood for example, where mansions line every block, this is pretty common. But this phenomenon is also going on in the city’s most working-class neighborhoods.
The Outer Sunset has plenty of charm too, though occasionally you may find properties that may need some more maintenance.
But these two neighborhoods share something in common, neither contains a single house affordable to the median household income of $101,000 dollars per a new Trulia study.
The report from Trulia titled “All in – or off limits” – may force bay area residents to readjust their expectations.
“You may be surprised to see places in say, in the Outer Richmond, or Outer Sunset or something, where there’s no affordability. But we’re also talking about single family homes, where those home values are very well likely over $1 million,” said Cheryl Young, Trulia Senior Economist
Another way to see how crazy this is: the New York metro is fourth on the list and it didn’t even reach double figures for neighborhoods with zero affordability.
San Francisco is more than twice as bad, as the Big Apple.