Report: Affordable housing erodes over last decade
Uneven changes in income and home prices have led to the erosion of housing affordability in the past decade, with mortgages becoming an increasing financial burden in 51 of the 100 cities looked at by the real estate site P2Homes in a new study.
The report notes in the Bay Area:
- In the last decade, the median home price in San Francisco passed the $1 million mark. The city is one of the three urban centers where this has happened; the other two are also in Bay Area – Fremont and San Jose;
- Although home prices skyrocketed in the last 10 years, wages in San Francisco kept up the pace, actually leading to a slight decrease in mortgage burden: from 43% of income in 2010 to 41% in 2015, and 39% in 2020;
- Despite this, San Francisco is still one of the most unaffordable cities in the country, with homebuyers needing to earn another $43,567 more to avoid being cost-burdened;
- In San Jose, the mortgage burden has increased from 29% in 2010 to 34% in 2020. Homebuyers here would need to earn $20,942 more to avoid mortgage burden.
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