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+--- Thread: In San Francisco, you need an income of $290,630... (/showthread.php?tid=210813)
In San Francisco, you need an income of $290,630... - freeradical - 11-20-2017
...to qualify for a loan for a home at the median price.
Wow
This piece is insane.
What happens in a large urban market when a young couple with a household income that is far above median cannot afford to buy even a modest home? What happens to that local economy? That’s what everyone wants to know, because this is precisely the fate San Francisco, Silicon Valley, and surrounding Bay Area counties are contemplating.
The Housing Affordability Index (HAI), released by the California Association of Realtors (CAR), has some bad news for these people – and possibly for the trends in the local economy and the housing market.
The median price – 50% cost more, 50% cost less – in San Francisco of a single-family house hit $1.45 million in Q2, according to CAR. This does not include condos, whose prices are somewhat less deadly. It puts San Francisco in second place in the Bay Area, behind San Mateo County, which comprises the northern part of Silicon Valley. Santa Clara County, in fourth place, comprises the southern part of Silicon Valley. In third place is Marin County, just north of the Golden Gate Bridge:
https://wolfstreet.com/2017/08/14/home-prices-silicon-valley-san-francisco-block-jobs-growth/
Re: In San Francisco, you need an income of $290,630... - hal - 11-20-2017
That's why prices in Sacramento have been on the rise and the ascent is getting steeper. People can't afford to live in the bay area. Every teen in Sacramento wants to move to SF when they grow up - many use to do that being very creative to afford it, but it's just not possible anymore.
15 years ago, my sister hunted high and low for a reasonable place to raise their child and almost gave up before finding a nice place in Alameda - it only took 115% offer to get it. They both worked and had GOOD incomes. Now, they are rather wealthy by my standards, but there is no way that they could find an affordable place NOW even in the same area. They are hanging on tight to their nice little place.
Re: In San Francisco, you need an income of $290,630... - mrbigstuff - 11-20-2017
SF is a geographically small place, and has an unusually strict policy of height constraints as well as general zoning conditions. Combine that with beauty, climate, and booming economy, you've got what you've got.
Re: In San Francisco, you need an income of $290,630... - OWC Jamie - 11-20-2017
Companies left SO SanFran 20 years ago for Washington for the exact same reason. This is really nothing new.
Re: In San Francisco, you need an income of $290,630... - freeradical - 11-20-2017
These crazy prices have affected job creation in the Bay Area.
Employment growth has flat lined.
Re: In San Francisco, you need an income of $290,630... - hal - 11-20-2017
freeradical wrote:
These crazy prices have affected job creation in the Bay Area.
Employment growth has flat lined.
What would you expect from a finite system? SF is small and is 100% developed. Where would these new workers work if you can't build a new place for them to work?
Re: In San Francisco, you need an income of $290,630... - C(-)ris - 11-20-2017
How is this any different than NYC?
Re: In San Francisco, you need an income of $290,630... - Onamuji - 11-20-2017
C(-)ris wrote:
How is this any different than NYC?
Prices aren't just high in that area, but also in all of the surrounding regions.
Working in NYC, you can find a place in Brooklyn... or Long Island... or Staten Island if you don't mind the reputation... or even Jersey if you can keep it a secret.
Re: In San Francisco, you need an income of $290,630... - davester - 11-20-2017
mrbigstuff wrote:
SF is a geographically small place, and has an unusually strict policy of height constraints as well as general zoning conditions. Combine that with beauty, climate, and booming economy, you've got what you've got.
Exactly. San Francisco proper is geographically unusual in that regard and most of the city has been out-of-reach for most people who work there since probably the 1980s. That's why most people who work in SF live in outlying areas and why it has been this way since at least the 1960s and probably earlier. It's basically the west coast version of Manhattan.
Re: In San Francisco, you need an income of $290,630... - space-time - 11-20-2017
Onamuji wrote:
[quote=C(-)ris]
How is this any different than NYC?
Prices aren't just high in that area, but also in all of the surrounding regions.
Working in NYC, you can find a place in Brooklyn... or Long Island... or Staten Island if you don't mind the reputation... or even Jersey if you can keep it a secret.
Come and visit Princeton and you may change your mind about NJ. What you see from the Turnpike is not what NJ looks like.