Silicon Valley Least Affordable in the World

[Fernando]

San Jose Spotlight: San Jose Is Worlds Least Affordable City For First-Time Homebuyers​

San Jose has been ranked No. 1 for the least affordable city in the world for first-time homebuyers in a new global study, underscoring how far housing costs have outpaced wages in the heart of Silicon Valley.

The study -- conducted by financial services company Remitly -- analyzed housing affordability in more than 150 cities worldwide by comparing average local incomes with typical home prices and applying standard mortgage criteria. California dominated the rankings, with six cities in the top 20. After San Jose, Los Angeles ranked second, Long Beach ranked third, San Diego ranked fourth and Vancouver, Canada rounded out the top five as the least affordable cities globally. San Francisco came in 10th and Oakland scored 19th.

In San Jose, where the average home price is about $1.37 million, a worker earning the city's average salary of $86,605 could afford about 27.3% of a typical home, according to the study. For two average earners making a combined $173,210, it would only buy them about 54.6% of a property.

 

[Tom D]

I would live there. I don't want poor people living next door to me.

 

[Fernando]

I would live there. I don't want poor people living next door to me.

If everyone who are poor living in million dollar homes are next to you, are they poor?
Can't buy a nice home here for million dollars.

 

[John Hassler]

People come to the Bay Area with buckets of money. I’ve been seeing and saying that for over 30 years. Sold two modest 1-bath homes last October with both listed at well over $1,000/sf. Multiple offers on both with one closing $30k over and the other $130k over. Both closed in under four weeks, one with no contingencies. Listed another clean 3-2 tract home last week at $850/sf with four over-asking offers already received, one with zero contingencies and close in 21 days, and another all cash. These were below median value homes but all in the seven figure range.

This will not last forever but the Bay Area is still hot. Apparently not all people, and certainly not all people with money, hate California.