It’s no surprise that Bay Area housing prices are some of the highest in the nation — and a new report shows how it’s getting even harder to afford a home in San Jose and San Francisco.
A report out from HSH.com lays out the salary you need to earn to buy a home in the 50 largest metros in the U.S. San Jose places at the very top of the list, with San Francisco coming in a close second.
San Jose is now the most expensive region in the country when it comes to housing, with the median price now being $1.25 million. To afford a median-priced home, your salary needs to be $255,000 per year. A typical family in San Jose makes less than half that.
Here’s how HSH breaks it down:
Mortgage rate: 4.98 percent
• Quarterly change: +0.17 percent
Home price: $1,250,000
Local
• Quarterly change: -3.85 percent
• Year-over-year change: -1.57 percent
Monthly payment: $5,946.17
Salary: $254,835.73
• Quarterly change: -$2,041.77
• Year-over-year change: +0.08 percent
If homebuyers in the San Jose metro put 10 percent down instead of 20 percent, the required salary increases from $254,835.73 to $294,778.59.
And things aren’t that much better in San Francisco, about an hour’s drive north of San Jose, where a median home price is now $952,200. If you want to buy a house in the City by the Bay, you need to be making almost $200,000.
Here’s how HSH breaks it down:
Mortgage rate: 4.98 percent
• Quarterly change: +0.17 percent
Home price: $952,200
• Quarterly change: -3.72 percent
• Year-over-year change: +3.5 percent
Monthly payment: $4,642.82
Salary: $198,978.01
• Quarterly change: -$1,047.84
• Year-over-year change: +0.13 percent
If homebuyers in the San Francisco metro put 10 percent down instead of 20 percent, the required salary increases from $198,978.01 to $229,404.88.
Last year, a similar report showed that an annual salary of $220,000 was needed in order to purchase a median home in the San Francisco Bay Area.
Next on the list is San Diego followed by LA, Boston and New York City.
Compared to all these pricey cities, you could buy a median-priced home in Pittsburgh on a $37,660 salary. The price of a median home in the steel city? $141,625.
To find out how HSH arrived at the salary figures, click here.
San Jose is now the most expensive region in the country when it comes to housing. Median price is now $1.25 million.
To afford a median-priced home, your salary needs to be $255,000/year.
A typical family here makes less than half that.
Source: @HSHassociates — scott budman (@scottbudman) February 26, 2019
